NAIFA Press Releases

NAIFA Supports Introduction of National Insurance Consumer Protection Act

NICPA Allows For Agent Choice

FALLS CHURCH, VA (April 2, 2009) — Today, U.S. Representatives Melissa Bean (D-IL) and Ed Royce (R-CA) introduced the National Insurance Consumer Protection Act (NICPA). The bill is a new iteration of legislation introduced in the last Congress to reform regulation of the insurance industry. The previous bill, the National Insurance Act, was better known as the optional federal charter bill.

Contact:

Lee Allen, Vice President of Communications and Marketing, NAIFA
(703) 770-8112 (office)
(703) 336-2462 (mobile)

The NICPA would continue to allow for an optional federal charter for insurance agents and companies, but adds provisions for enhanced consumer protections and the establishment of a new Financial Services Coordinating Council, which includes the new National Insurance Commissioner, to serve in an advisory capacity to a new systemic risk regulator.

On September 10, 2008, NAIFA’s National Council nearly unanimously voted to support the concept of an OFC, provided that it meets defined principles of our support. The principles include true agent choice, enhanced consumer protections, the preservation of state regulation and the establishment of a single federal entity with expertise in insurance matters.

“NAIFA supports the introduction of the NICPA. Representatives Bean and Royce have taken great steps to incorporate the principles of NAIFA’s support into the bill” says NAIFA President Cliff Wilson, CLU, ChFC, LUTCF.

“We are particularly happy with the enhanced consumer protection provisions of the bill, such as the inclusion of the NAIC Unfair Trade and Unfair Claims Settlement Practices Acts, as well as the call for increased accountability to Congress for the processing of complaints through the Office of National Insurance’s Division of Consumer Affairs,” continued Wilson. “We look forward to continuing to engage Representatives Bean, Royce, and the other members of the House Financial Services Committee and the Congress as this process moves forward.”

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About NAIFA: NAIFA comprises more than 700 state and local associations representing the interests of approximately 200,000 agents and their associates nationwide. NAIFA members focus their practices on one or more of the following: life insurance and annuities, health insurance and employee benefits, multiline, and financial advising and investments. The Association’s mission is to advocate for a positive legislative and regulatory environment, enhance business and professional skills, and promote the ethical conduct of its members.