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A Reexamination of Federal Regulation of the Insurance Industry
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A Reexamination of Federal Regulation of the Insurance Industry

Martin F Grace
Networks Financial Institute Policy Brief, No. 2009-PB-02
Indiana State University, Networks Financial Institute
02/2009
DOI: 10.2139/ssrn.1350538
url
https://doi.org/10.2139/ssrn.1350538View
Published (Version of record) Open Access

Abstract

The Optional Federal Chartering (OFC) proposal introduced in the last session of Congress may have been the right bill for the introduction of federal regulation of the insurance industry at the turn of the 20th century. However, the current OFC proposal shows its 19th century roots as it merely copies the banking industry's dual chartering provision and various aspects of state insurance regulatory law. This paper critiques the issue of federal regulation, not necessarily from the perspective of whether federal regulation dominates state regulation, but as to whether the federal or state regulation is structured sufficiently to minimize market failures or to minimize the effect of regulatory failures
Insurance Regulation Regulatory Modernization Federal/State Issues

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