Financial Service Subcommittee Considers Insurance Reform Proposals - BodyShop Business

Financial Service Subcommittee Considers Insurance Reform Proposals

The U.S. House Financial Service Subcommittee held Part III of its hearing on insurance regulation recently. The previous hearings were held in October 2007 and focused on the need for insurance regulatory reform. The purpose of the hearing was to consider a variety of state and federal proposals on insurance reform. Currently, there are two pending bills in Congress, H.R. 3200 and S. 40, titled the “National Insurance Act of 2007.” These bills would create an optional federal charter (OFC) and establish the Office of National Insurance (ONI).           

David Nason, assistant secretary for Financial Institutions, Department of the Treasury, outlined the recently released “Blueprint for a Modernized Financial Regulatory Structure” that was released by the Treasury Department March 31. The blueprint was created after a year-long effort working toward the modernization of all sectors of the financial services industry. Nason said: “A number of reform proposals have been considered over the years to modernize the U.S. system of insurance regulation: total federal preemption, dual federal/state systems under an optional federal charter approach, mandating national standards on the state-based system, and harmonizing and making more uniform regulation among the states. In the Treasury Department’s view, the establishment of a dual federal/state system with an OFC provides the best opportunity for the establishment of a modern and comprehensive system of regulation.”           

Alastair Shore, senior vice president and chief underwriter of CUNA Mutual Group, presented on behalf of the American Council of Life Insurance and the American Insurance Association. Shore focused on his trade associations’ support of the Optional Federal Charter. According to Shore, “The National Insurance Act is a strong consumer protection bill, which focuses on a robust centralized system that emphasizes safety, soundness and consistent market regulation. The consumer protections are reinforced through separate consumer affairs and insurance fraud divisions and a new federal ombudsman. Together, these regulatory powers will create a presence that can more quickly respond to consumers than the current, fragmented regulatory system.”          

Other panel members presented testimony on behalf of the National Association of Insurance Commissioners, the Self-Insurance Institute of America, the Independent Insurance Agents and Brokers of America and the Interstate Insurance Product Regulation Commission.           

To view the National Insurance Act, visit the Automotive Service Association’s legislative Web site, www.TakingTheHill.com. The bills can be found under the “Track Legislation” button in the left navigation menu or by clicking the large red “Track Current Legislation” button in the right column of the home page. To view the blueprint, visit the “Press Center” and click on “References and Bills.”         

You May Also Like

Body Bangin’: The Disengagement Epidemic with Kevin Wolfe

Micki Woods interviews Leaders Way Owner Kevin Wolfe on why 73% of work professionals are disengaged today and what we can do about it.

Micki Woods, master marketer for collision repair shops and owner of Micki Woods Marketing, has released the latest episode of "Body Bangin'," the video podcast that is taking the industry by storm!

In this episode, Woods interviews Kevin Wolfe, owner of Leaders Way and former mechanical shop owner, on how he became the shop everyone wanted to work at. Wolfe also points out that 73% of work professionals today are disengaged — an all-time high — and discusses why that is and how we can fix that.

Body Bangin’: I Thought We Were Doing It Right with Josh Piccione

Micki Woods interviews Josh Piccione on repairing vehicles correctly — according to manufacturer guidelines.

Body Bangin’: Be a Star Not a Hamster with Robert Snook

Micki Woods interviews popular keynote speaker Robert Snook on how to differentiate and grow your business.

Body Bangin’: Know Me, Know My Car with Mike Anderson

Micki Woods interviews Mike Anderson on the importance of building an emotional connection with your customers.

Body Bangin’: Fighting for Consumer Safety with Burl Richards

Micki Woods interviews Burl Richards on his personal mission to fight for consumers’ rights and safety.

Other Posts

Body Bangin’: The Employer-Student Disconnect

Micki Woods interviews Raven Hartkopf, lead collision instructor at Collin College in Texas, on what students want from a shop employer.

Body Bangin’: Why Follow OEM Repair Procedures?

Micki Woods interviews Logan Payne of Payne & Sons Paint & Body Shop on the importance of following OEM repair procedures.

Body Bangin’: Getting Paid for Calibrations

Micki Woods interviews Andy Hipwell and James Rodis of OEM Calibration on how to get started doing ADAS calibrations.

Body Bangin’: What Are The Consolidators Up To With Laura Gay

Micki Woods interviews Laura Gay of Consolidation Coach on the current state of auto body shop consolidation.