Optional Federal Charter?

[3.14]

This (registration required) could be interesting...someone's proposing optional federal chartering for life and P&C companies, similar to what banks currently enjoy.

The devil you do know, against the devil you don't....

[DW Simpson]

http://www.actuarialoutpost.com/actu...3&postcount=81 , also.

[DW Simpson]

http://businessinsurance.com/cgi-bin...pl?newsId=7508

Senators unveil federal charter plan for insurers
by Mark A. Hofmann
Posted on April 05, 2006 2:09 PM CST

WASHINGTON—The Senate Banking Committee could launch hearings on a bill that would allow certain insurers to choose federal rather than state charters within the next few weeks, the bill’s sponsors said Wednesday.


Sens. John Sununu, R-N.H., and Tim Johnson, D-S.D., unveiled a detailed outline of their proposed National Insurance Act of 2006 at a press conference in the Capitol on Wednesday afternoon.

More...

[Plant Food]

http://www.sununu.senate.gov/pressap...45&&year=2006&

[Maphisto's Sidekick]

At least for those of us on the P&C side of the house, another way to think of federal charters -- will the whole country be like (say) Illinois....or Massachusetts? And, if one or the other...how might that change come the next time control of Washington changes hands?

[Plant Food]

I don't have a link but I recall reading that there's no rate regulation in the bill. My sense is that with federal regulation there isn't as much political pressure on the day-to-day regulators. Generally speaking, the political appointees are smart enough to let the non-partisan civil servants with industry knowledge do their jobs. If you look at the morning after pill, career scientists aren't necessarily upset about it not being sold over the counter but that the political appointees aren't heeding their scientific opinion.

For companies operating in Florida, Massachusetts, New Jersey, and other regulatory hell holes, I can't see why they'd want to stay with state regulation.

[Plant Food]

National Insurance Act of 2006 (Introduced in Senate)

[DW Simpson]

http://riskprof.typepad.com/tort/200...mocratic_.html