National Insurance Act Reintroduced in Senate
|May 24, 2007|
National Insurance Act of 2007 (Draft) [pdf] |
COFIR Opposes National Insurance Act of 2007 [pdf]
Senators John Sununu (R-NH) and Tim Johnson (D-SD) reintroduced the "National Insurance Act of 2007." A bill number has not been assigned yet.
This legislation would create a new federal regulator for insurance companies that choose to obtain a federal insurance charter. Although the legislation purports to apply only to life and property/casualty insurers, it could be problematic for the title insurance industry. Since federally chartered insurance companies would gain preemption of state laws and regulations, a property/casualty insurer could gain the authority to underwrite and market an alternative mortgage impairment type product regardless of state laws.
ALTA remains opposed to a federal insurance charter.