Allianz Of America Applauds Introduction Of Optional Federal Charter Legislation

Novato, CA - Allianz of America President Chuck Kavitsky praised Reps. Melissa Bean (D-IL) and Ed Royce (R-CA) for their introduction of legislation that would modernize the insurance regulatory system by creating an optional federal charter for insurers. "The National Insurance Act of 2007" would give insurers the option to select a federal regulator while maintaining the current state regulatory system for those insurers who believe that it best fits their needs.

Kavitsky has been a long-time supporter of creating an optional federal charter, seeking to educate members of Congress about the need to modernize the state insurance regulatory system.

"I commend Representatives Bean and Royce for their introduction of legislation that promotes a vibrant insurance marketplace by relying on free-market principles," said Kavitsky. "An optional federal charter will allow us to better and more nimbly respond to ever-changing insurance risks faced by consumers."

The creation of an optional federal charter would allow all aspects of the insurance marketplace – property-casualty and life insurers, reinsurers and insurance producers – to operate like other components of the financial services sector, where consumers benefit from a national marketplace and the inherent efficiencies that arise from it. This will in turn benefit consumers by increasing competition on both product and price in the financial services industry. A companion bill, S. 40, was introduced in the Senate earlier this year by Sens. Tim Johnson (D-SD) and John Sununu (R-NH).

"We stand at a critical juncture in the evolution of the insurance marketplace," said Kavitsky. "The economy is becoming more global, and along with it, so is the delivery of insurance services. Representatives Bean and Royce are demonstrating astute leadership in seeking to modernize the insurance regulatory system, and we look forward to working with them on this important legislation."

SOURCE: Allianz of America