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Obama Tries to Yank Insurance from State Regulation
- Thread starter defenderzeta
- Start date
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I can see both side of the arguement here. This also makes me wonder if they would try to take over the licensure of us agents at a federal level as well. I have mixed feelings about such a possibility, but the idea of having a national license and being able to sell in all states sort of appeals to me too....or least least it would save me a few bucks on all the non-res license fees!
Until you realize that the license fee is suddenly 50 times as high because, well, it covers all 50 states.
This would be an interesting concept. Hurricane damage would no longer be covered in North Dakota due to the risk of Hurricane damage in Florida. Of course, those in the desert must clear their sidewalks of snow following a snowstorm or risk not being covered for slips and falls on their sidewalks.
In Southern California, you will have to water your forest to prevent forest fires, or else house fires will not be covered.
The one thing about state regulation is it allows the rules to fit the market. Doesn't mean they always do, but, there is no way it would get better under a federal czar.
Okay, life and health are probably different than P&C on this.
Dan
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I doubt that the license would work that way...Just look at Securities...Its 1 nationalized test and registration but to do business in the state you must pay a fee every year....
Okay Defenderaz...I am going to be sending you a bill...I read the bloomburg article and fell from my chair LMAO when they mentioned expertise at the federal level the large private banks that collapsed where under SEC jurisdiction...SEC was warned for years about Bernie Madoff...and they use AIG as an example but the division that brought AIG down was not under state jurisdiction but if I'm not mistaken Federal Jurisdiction...they also mention insurers now tapping bailout funds....the question are they tapping those funds because reserves have dropped due to insurers investing in mortgages and real estate which would once again point to something regulated at the federal level.
Finally lets look at the Shenendoah recievership has any policy holder lost money at this time? now lets look at bondholders in the auto industry, and the Financial industry...The more the federal government steps in the more unintended consequences happen.
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Very true, Norway! I also have to remind myself of what happens when the Fed gets involved in any issue....
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There is NO way possible the state will roll over and NOT collect state license and appointment fees, not happening. Not today, not ever.
Federal oversight and ADDITIONAL fees are probable - lower fees, HIGHLY unlikely.
Federal oversight and ADDITIONAL fees are probable - lower fees, HIGHLY unlikely.
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It would be nice of there was a national license, but this is easy revenue for the states. They won't easily give it up.
- 8,707
You in essence have a national license now with NIPR you have a national producers license #...Just because you make a national license doesn't mean your not going to have to pay each and every state you write in...Just look at securities its one national exam and one national registration but the registration is useless without paying a fee to each state you will write in...so by letting this go to the federal level you'll only increase cost nothing else.
License fee's are chump change compared to premium taxes.
Imperial National Insurance Czar | Georgia Health Insurance 411
Imperial National Insurance Czar | Georgia Health Insurance 411
- 8,707
True but do you believe that insurance regulation at the state level would remove these premium taxes or only shift these taxes to the federal coffers.
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