NAIC Begins Campaign to Maintain State Regulation of Insurance

COLUMBIA, S.C. April 16 (BestWire) - The National Association of Insurance Commissioners has begun its campaign in South Carolina to fight off attempts at federal regulation of insurance, with the governor and a coalition of the state's insurance companies and agents pledging their support.

South Carolina is the first state to initiate the Alliance for Sound State Uniform Regulatory Efficiency program, created by the NAIC to make its case with state and federal lawmakers, business leaders and consumers about the advantages of state regulation of insurance and the problems associated with federal oversight.

ASSURE is a grass roots effort by the NAIC to bring together supporters of state regulation--insurers and noninsurers, consumers, legislators and industry trade groups--to lobby members of Congress and to push regulatory-modernization efforts state by state.

"If those in the insurance industry who are pushing to rid themselves of state regulation are successful, it would undermine our system of consumer protections and fiscal oversight and, at the same time, cost the state jobs, taxes, fees and other revenues related to the industry," said Ernst Csiszar, South Carolina's insurance director and the NAIC's vice president, in a statement.

With many state governments facing budget deficits, South Carolina Gov. Mark Sanford noted insurance is a major industry in the state, employing nearly 25,000 people, earning more than $880 million in 2002 and paying more than $108 million in premium taxes.

"Placing regulation in the hands of the federal government would almost certainly have a negative impact on the state's economy," Sanford said in a statement.

Among others on hand in South Carolina to support the launch of ASSURE on April 14 were the Alliance of American Insurers; Independent Insurance Agents of South Carolina.; Professional Insurance Agents of South Carolina; South Carolina Captive Insurance Association; and Alliance member companies based in South Carolina--the Canal Group, Capital City Insurance Co., Companion Property & Casualty Group, Seibels Bruce Group, South Carolina Farm Bureau Group and Southern Mutual Church Insurance Group.

(By Dennis Kelly, Washington bureau manager, BestWeek: Dennis.Kelly@ambest.com) BN-NJ-04-16-2003 1139 ET #