Editorial: Keep up pressure on chartering.(Senator Charles Schumer introduces legislation that allows optional federal insurer chartering)(Brief Article)

Business Insurance, January, 2002

We praise Sen. Charles Schumer's decision to introduce legislation that would allow optional federal chartering of insurers. The New York Democrat's bill, which is overdue, will advance the debate over the need of large multistate insurers-and their customers-for alternatives to the current antiquated system of state-based regulation.

At a minimum, it will prod state officials to accelerate the pace of reforms until a federal alternative is available. The arguments for giving large insurers a choice of federal rather than state charters are legion. As critics of the current system have repeatedly demonstrated, the state regulatory system is inefficient and outmoded for today's global insurance marketplace. Common sense would suggest that insurers that had to...

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