Regulating Insurers: Two Perspectives

To the Editor:

The concern voiced in “Regulator Shopping” (editorial, May 21) is unwarranted.

Life insurers are asking Congress to enact legislation to create an optional federal charter in which consumer protections meet the highest state standards and are uniform across the country. In the wake of the financial crisis, Congress is in no mood to do less.

The federal standards would serve as a model for states that lag behind. Indeed, the current state-by-state system leaves some consumers vulnerable.

In an April report, the Government Accountability Office said of the current system, “Lack of uniformity and reciprocity may lead to inefficiencies, higher insurance costs and uneven consumer protection across states...”

NY Times: Regulating Insurers: Two Perspectives