Agents For Change
Encyclopedia
Founded in 2005, Agents For Change http://www.agents4change.net is a grassroots trade association of over 8,500 insurance agents and brokers from across all lines of insurance working together to enact an optional federal charter
to allow producers the option of being regulated at either the federal or state level. Members of Agents for Change participate in policy development and provide lawmakers with expert advice as they move forward to modernize insurance regulation. An optional federal charter could revolutionize the way insurance agents and brokers across America conduct business.
In the 111th Congress a bipartisan bill was introduced in the U.S. House of Representatives to create an optional federal charter. Titled, the National Insurance Consumer Protection Act (H.R. 1880)http://www.thomas.gov/cgi-bin/query/z?c111:H.R.1880:, the bill's sponsors are Representatives Melissa Bean
(D-IL) and Ed Royce
(R-CA).
There are distinct advantages for agents and brokers within the framework of an optional federal charter. These include: (1) a single national license for agents that offer their services in more than one state; (2) speed to market of products would be greatly enhanced; (3) consumers would have additional products at more competitive rates from which to choose; and (4) the ability to better serve customers no matter where they may live (or move).
Insurers would be able to bring their products to market more quickly because they would only have to obtain approval from a single regulatory body, rather than in multiple states as they do now under the patchwork quilt of state regulation. And consumers, who often move from state to state in today's economy, would benefit from more stable insurance premiums and consistent administration and regulation of their insurance policies.
Consumer protection will be strengthened under a national insurance charter: No longer would consumers be subject to inconsistent regulatory oversight because of where they live. A national regulator would be focused on the issues of greatest imprtance to consumers including oversight of insurers' financial strength and their sales and claims handling practices. A new Division of Consumer Affairs would be established within the proposed Office of National Insurance (to be housed within the United States Department of the Treasury
).
The current patchwork of inconsistent state laws and regulations confuses consumers and results in insurance products that vary greatly among the states. These differences hinder consumers and add to the cost of insurance products. A national insurance charter will eliminate this regulatory inefficiency allowing insurers to offer additional products with enhanced customer service quite possibly at more competitive prices.
ruled in United States v. South-Eastern Underwriters Association
that the federal government could regulate insurance companies under the authority of the Commerce Clause
in the U.S. Constitution.
Optional federal charter
Optional Federal Charter ' is a proposal to streamline and simplify US insurance regulation by allowing insurance companies to choose between a current state-based regulatory system and a single federal regulatory agency...
to allow producers the option of being regulated at either the federal or state level. Members of Agents for Change participate in policy development and provide lawmakers with expert advice as they move forward to modernize insurance regulation. An optional federal charter could revolutionize the way insurance agents and brokers across America conduct business.
In the 111th Congress a bipartisan bill was introduced in the U.S. House of Representatives to create an optional federal charter. Titled, the National Insurance Consumer Protection Act (H.R. 1880)http://www.thomas.gov/cgi-bin/query/z?c111:H.R.1880:, the bill's sponsors are Representatives Melissa Bean
Melissa Bean
Melissa Luburich Bean is a former U.S. Representative for the who served from 2005 until 2011. She is a member of the Democratic Party.-Early life, education and career:...
(D-IL) and Ed Royce
Ed Royce
Edward Randall "Ed" Royce is the U.S. Representative for , and previously the 39th, serving in Congress since 1993. He is a member of the Republican Party. The district lies in northern Orange County, including portions of Stanton, Cypress, Buena Park, Fullerton, Anaheim, Placentia, and Orange...
(R-CA).
There are distinct advantages for agents and brokers within the framework of an optional federal charter. These include: (1) a single national license for agents that offer their services in more than one state; (2) speed to market of products would be greatly enhanced; (3) consumers would have additional products at more competitive rates from which to choose; and (4) the ability to better serve customers no matter where they may live (or move).
Insurers would be able to bring their products to market more quickly because they would only have to obtain approval from a single regulatory body, rather than in multiple states as they do now under the patchwork quilt of state regulation. And consumers, who often move from state to state in today's economy, would benefit from more stable insurance premiums and consistent administration and regulation of their insurance policies.
Consumer protection will be strengthened under a national insurance charter: No longer would consumers be subject to inconsistent regulatory oversight because of where they live. A national regulator would be focused on the issues of greatest imprtance to consumers including oversight of insurers' financial strength and their sales and claims handling practices. A new Division of Consumer Affairs would be established within the proposed Office of National Insurance (to be housed within the United States Department of the Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
).
The current patchwork of inconsistent state laws and regulations confuses consumers and results in insurance products that vary greatly among the states. These differences hinder consumers and add to the cost of insurance products. A national insurance charter will eliminate this regulatory inefficiency allowing insurers to offer additional products with enhanced customer service quite possibly at more competitive prices.
History
The McCarran–Ferguson Act, 15 U.S.C. §§ 1011-1015, is a United States federal law that exempts the business of insurance from most federal regulation, including federal anti-trust laws to a limited extent. The McCarran–Ferguson Act was passed by Congress in 1945 after the Supreme CourtSupreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
ruled in United States v. South-Eastern Underwriters Association
United States v. South-Eastern Underwriters Association
United States v. South-Eastern Underwriters Association, 322 U.S. 533 is a United States Supreme Court decision that held that the Sherman Act, the federal antitrust statute, applied to insurance. To reach this decision, the Court held that insurance could be regulated by the United States...
that the federal government could regulate insurance companies under the authority of the Commerce Clause
Commerce Clause
The Commerce Clause is an enumerated power listed in the United States Constitution . The clause states that the United States Congress shall have power "To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." Courts and commentators have tended to...
in the U.S. Constitution.