10-R379

2010 -- S 2174 AS AMENDED

Enacted 09/15/10

J O I N T R E S O L U T I O N

OPPOSING THE CREATION OF AN OFFICE OF NATIONAL INSURANCE

(ONI)/FEDERAL INSURANCE OFFICE (FIO)

Introduced By: Senator John J. Tassoni

Date Introduced: February 09, 2010

     WHEREAS, The United States House of Representatives passed H.R. 4173, the Wall

Street and Consumer Protection Act. Contained within the bill is language to establish a Federal

Insurance Office (FIO); and

     WHEREAS, Currently, the Senate Committee on Banking, Housing, and Urban Affairs is

revising the Restoring American Financial Stability Act. An Office of National Insurance (ONI)

is being considered for inclusion under Title V of that bill; and

     WHEREAS, The draft legislation contained in the revised Restoring American Financial

Stability Act would allow an ONI to preempt unspecified state insurance laws without input from

individual states; and

     WHEREAS, Additionally, the ONI could potentially “perform such other related duties

and authorities as may be assigned to the Office by the Secretary,” and could be authorized to

conduct a study on how to “modernize and improve” insurance regulations. In essence, the very

agency that would benefit by the expansion of federal insurance presence would be the same

agency conducting the study to determine whether it is necessary, again, with no input from

individual states; and

     WHEREAS, The establishment of either the FIO or an ONI will be a first step toward an

optional federal charter (OFC)—an idea that has been soundly rejected by consumers, insurance

agents, and industry representatives; and

     WHEREAS, Rhode Island has a healthy insurance market, built on a comprehensive

system of insurance regulations. This state’s licensing, unfair trade practice, and guaranty fund

laws provide crucial protections for insurance policyholders; and

     WHEREAS, Enhancing communication and information sharing between federal and

state officials and including state officials as equal partners on any council created by Congress to

monitor financial markets will better accomplish the goals and purpose for which the ONI/FIO is

to be established; now, therefore be it

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby opposes any measures that would preempt state insurance authority, initiate

federal insurance regulation, and/or establish an Office of National Insurance, a Federal Insurance

Office, or an optional federal charter; and be it further

     RESOLVED, That the Secretary of State be and is hereby authorized and directed to

transmit duly certified copies of this resolution to The Honorable Senator Jack Reed, The

Honorable Senator Sheldon Whitehouse, and the National Conference of Insurance Legislators

President Representative Robert Damron.

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LC01325

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