Insurers Concerned About States' Rights Bill.

National Underwriter Property & Casualty-Risk & Benefits Management, August, 1999 by BROSTOFF, STEVEN

A little-noticed effort in both the U.S. House and Senate to promote the concepts of federalism and states' rights is starting to raise serious concerns that it could derail efforts to modernize financial services. The legislation would require both Congress and federal agencies to issue explicit statements of intent when they preempt state or local laws and an explanation of the reasons for the preemption, as well as issue detailed reports on the preemption.

The reports would include estimates of the costs that will be incurred by state and local governments by the preemption, the extent of a federal government agency's consultation with the affected state and local governments, and any alternatives to preemption that were considered. The interaction of...