Treasury Secretary Jacob Lew. (AP Photo/Manuel Balce Ceneta)

The National Governors Association expressed concern in a letter to Treasury Secretary Jacob Lew about December’s Federal Insurance Office regulatory modernization report and its role in the larger state vs. federal regulation debate.

The NGA, a bipartisan organization of the nation’s governors, says in the letter, “Governors are concerned by the FIO report’s suggestion of a greater federal role that could invite a dual regulatory system. It is our position that federal laws and regulations must not preempt or undermine the strong state-based insurance-regulatory system that for more than 140 years has protected consumers and safeguarded the capital adequacy and solvency of insurers.”

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