WASHINGTON, D.C. — U.S. House of Representatives Bill 3200 was introduced on July 26 by Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., a bill that corresponds with companion legislation, Senate Bill 40, known as the National Insurance Act of 2007, introduced by Sens. Tim Johnson, D-S.D., and John Sununu, R-N.H. on May 24. The proposed bill would establish an optional Federal Charter to be used by insurers operating under the jurisdiction of multiple states and calls for the creation of an Office of National Insurance, which would act under an extensive set of regulatory and supervisory powers that would be modeled after those exercised by federal banking agencies. Additionally, there would be a Division of Consumer Protection as well as a Fraud Division within the national office. The Automotive Service Association (ASA) has stated that is believes such a bill would only further complicate the insurance reform process and falls short of a federal regulatory system necessary for consumer and small business protections. "Although this bill includes property casualty insurers, it is still optional and does not go as far as necessary to assure the federal government assumes a proper role in regulating insurers,” says Bob Redding, ASA's Washington, D.C., representative. “The best first step for insurance reform still lies with Senate Judiciary Chairman Patrick Leahy's (D-Vt.) McCarran-Ferguson Act repeal, S.B. 618 legislation. ASA encourages repairers to go to ASA's Taking the Hill Web site and send a support letter to their senators and representatives." To send a letter to your senators and representatives supporting repeal of the McCarran-Ferguson Act, visit www.TakingTheHill.com and click on “Legislative Alert Center” in the left menu; then see the featured alert, “Support Repeal of McCarran-Ferguson Act,” and click the “Take Action” button.
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