OFC Boosters & Busters Make Points To Congress

WASHINGTON–Supporters and opponents of a federal role for insurers used their appearances at a congressional hearing on American International Group’s bonus payments to reiterate their views today on a proposed optional federal insurance charter.

In brief comments at the hearing, Rep. Ed Royce, R-Calif., a longtime supporter of legislation that would create an OFC, said he has been warning of the “system risk” problems created by state regulatory system for insurance since 2006, and that they would continue to exist until a federal role for insurance is created.

For the National Association of Insurance Commissioners, Joel Ario, Pennsylvania insurance commissioner, restated the state regulators’ view that creating separate federal charters would create concerns about “regulatory arbitrage,” i.e., the ability to choose either state or federal regulation.