NAIC slams NAIFA on charter support

The National Association of Insurance Commissioners has admonished the National Association of Insurance and Financial Advisors for supporting the optional federal charter. “NAIFA has been a long-standing supporter of the NAIC and the state-based system of insurance regulation,” Sandy Praeger, president of Kansas City, Mo.-based NAIC and Kansas’ insurance commissioner, said in a statement late Friday. “We are certainly surprised and disappointed that NAIFA’s board would suddenly change course on this important consumer protection issue — especially without the benefit of having the full feedback and support of its 225,000 members.” Last week, the board of trustees of Falls Church, Va.-based NAIFA had voted to support the concept of the optional federal charter for insurance, while continuing to support state-based regulation. The OFC is a provision in the National Insurance Act of 2007 bill which would permit insurers to become chartered nationally, and work under a uniform set of regulations and a federal regulator. Those who opt to remain state regulated may do so. In its statement, NAIFA said that it wants its members to have the choice to remain licensed and regulated by the states in the event the National Insurance Act of 2007 becomes law.