Washington, D.C. (Sept. 10, 2008) -- Frank Keating, president and CEO of the American Council of Life Insurers (ACLI), issued the following statement in response to today’s vote by the National Association of Insurance and Financial Advisors (NAIFA) to conditionally support creation of an optional federal charter for insurance regulation:
“We are happy to see our partners in the life insurance industry—NAIFA—formally endorse optional federal charter (OFC) legislation, subject to certain reasonable conditions that ACLI support.
“NAIFA is the nation’s leading association of life insurance agents and has honorably represented its members for nearly 120 years. NAIFA’s support for a well-crafted OFC system shows that all segments of the life insurance industry—companies and producers; large businesses and small—recognize the need to modernize insurance regulation. A streamlined and efficient regulatory structure will allow companies and producers to deliver innovative products to consumers at a lower cost and subject to the highest standards of consumer protection.
“OFC will not supplant state regulation. Rather, it will offer an alternative. Companies and producers will choose which system best suits their business models and, more importantly, their customers. The ideal situation will be to have two strong and professional regulatory options that emphasize consumer protection and efficiency.
“As I look back over the years, I am gratified at the tremendous consensus that has developed around the OFC concept. OFC has the support of life insurance agents, brokers, companies large and small, members of Congress from both parties and financial analysts who say OFC is vital to maintaining America’s global leadership in financial services. And earlier this year, the United States Treasury Department added its voice of support. We hope the new 111th Congress will move forward with OFC legislation as early as possible next year.”
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The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association whose 353 member companies account for 93 percent of the life insurance industry’s total assets in the United States, 93 percent of life insurance premiums and 94 percent of annuity considerations. In addition to life insurance and annuities, ACLI member companies offer pensions, including 401(k)s, long-term care insurance, disability income insurance and other retirement and financial protection products, as well as reinsurance. ACLI's public Web site can be accessed at www.acli.com.