The plan of Treasury Secretary to combat the financial crisi

 

Tuesday, Mar 31,2009, 1:01:54 AM   Click:

WASHINGTON (March 26, 2009) - The comments below Jimi Grande, Vice President for Political Affairs and the federal National Association of Mutual Insurance Companies (NAMIC), today in response to remarks of Treasury Secretary, Timothy F. Geithner during a hearing before the House Financial Services Committee.

"We appreciate the hard work of the Treasury Secretary to address the nation from financial crisis. However, many questions remain about the administration of the proposal in terms of the regulation of property / industry 's accident insurance.



"We agree with the Secretary of the committee that thousands of small businesses are not part of the problem - but are part of the solution. The thousands of property / casualty insurance companies in the streets main across America are very competitive, well capitalized and continues to fulfill the promises of their policyholders. They are fundamental to the country's economy and its ability to recover from the current crisis.

"NAMIC is pleased that a number of members of the committee and the secretary, reaffirmed their support of the state-based regulatory system of insurance. As Secretary Geithner told the committee that any authority Federal regulations should not supplant the effectiveness of insurance regulation, he left the door open to discussion of a federal charter option.

"We are concerned that the secretary and some members of Congress in May to use the current crisis as an opportunity to establish federal regulation of insurance activities. Property / Casualty Insurance Regulation must stay at the state, since efforts to establish an optional federal charter or federal oversight of the property / insurance lead inefficient, costly and confusing duplication.

"We urge Congress and the administration of caution as they craft solutions to the current crisis and target only those elements of the financial services industry where there are regulatory gaps. We look forward to working with policymakers on this important issue. "

For more information, contact
Nancy Grover
Director - Media Relations
(202) 628-1558 Tel
(202) 628-1601 Fax
ngrover@namic.org

Founded in 1895, the National Association of Mutual Insurance Companies (NAMIC) is a full-service national trade association serving the property / insurance industry accident in more than 1,400 member companies to ensure that more 40 per cent of the property or accident insurance premium United States. NAMIC members are small farm mutual companies, national and regional insurance companies, risk retention groups, writers, reinsurance companies, and the international giants of the insurance. Together, we are NAMIC.