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SJM114...............................................by JUDICIARY AND RULES
NATIONAL INSURANCE ACT - Stating findings of the Legislature and joining
with the National Conference of Insurance Legislators in expressing Idaho's
strong opposition to the proposed federal National Insurance Act of 2007.
03/18 Senate intro - 1st rdg - to printing
03/19 Rpt prt - to 10th Ord
03/20 10th Ord - ADOPTED - voice vote
Floor Sponsor - Goedde
Title apvd - to House
03/21 House intro - 1st rdg - to Bus
03/26 Rpt out - rec d/p - to 2nd rdg
03/27 2nd rdg - to 3rd rdg
Rls susp - ADOPTED - 63-2-5
AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
Chew, Collins, Crane, Eskridge, Hagedorn, Hart, Harwood, Henbest,
Henderson, Jaquet, Killen, King, Kren, Lake, Loertscher, Luker,
Marriott, Mathews, Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart,
Patrick, Pence, Raybould, Ringo, Roberts, Ruchti, Rusche, Sayler,
Schaefer, Shepherd(02), Shepherd(08), Shirley, Shively, Smith(30),
Smith(24), Snodgrass, Thayn, Thomas, Trail, Vander Woude, Wills,
Wood(27), Wood(35), Mr. Speaker
NAYS -- Durst, LeFavour
Absent and excused -- Anderson, Clark, Labrador, McGeachin, Stevenson
Floor Sponsor - Snodgrass
Title apvd - to Senate
03/27 To enrol
03/28 Rpt enrol - Pres signed
03/31 Sp signed
04/01 To Secretary of State
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE SENATE SENATE JOINT MEMORIAL NO. 114 BY JUDICIARY AND RULES COMMITTEE 1 A JOINT MEMORIAL 2 TO THE SENATE AND HOUSE OF REPRESENTATIVES OF THE UNITED STATES IN CONGRESS 3 ASSEMBLED, TO THE CONGRESSIONAL DELEGATION REPRESENTING THE STATE OF IDAHO 4 IN THE CONGRESS OF THE UNITED STATES, TO MEMBERS OF THE UNITED STATES SEN- 5 ATE COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS AND TO MEMBERS OF THE 6 UNITED STATES HOUSE OF REPRESENTATIVES COMMITTEE ON FINANCIAL SERVICES. 7 We, your Memorialists, the Senate and the House of Representatives of the 8 State of Idaho assembled in the Second Regular Session of the Fifty-ninth 9 Idaho Legislature, do hereby respectfully represent that: 10 WHEREAS, regulation, oversight and consumer protection have traditionally 11 and historically been powers reserved to state governments under the McCarran- 12 Ferguson Act of 1945; and 13 WHEREAS, state legislatures are more responsive to the needs of their con- 14 stituents and the need for insurance products and regulation to meet their 15 state's unique market demands; and 16 WHEREAS, many states, including Idaho, have recently enacted and amended 17 state insurance laws to modernize market regulation and provide insurers with 18 greater ability to respond to changes in market conditions; and 19 WHEREAS, state legislatures, the National Conference of Insurance Legisla- 20 tors (NCOIL), the National Association of Insurance Commissioners (NAIC), and 21 the National Conference of State Legislatures (NCSL) continue to address uni- 22 formity issues among states by the adoption of model laws that address market 23 conduct, product approval, agent and company licensing and rate deregulation; 24 and 25 WHEREAS, initiatives are being contemplated by certain members of the 26 United States Congress that have the potential to destroy the state system of 27 insurance regulation and create an unwieldy and inaccessible federal bureau- 28 cracy, all without consumer and constituent demand; and 29 WHEREAS, such initiatives include S.40/H.R.3200, the National Insurance 30 Act of 2007, which is proposed optional federal charter legislation that would 31 bifurcate insurance regulation and result in a quagmire of federal and state 32 directives that would promote ambiguity and confusion; and 33 WHEREAS, S.40/H.R.3200 would allow companies to opt out of state insurance 34 regulatory oversight and evade important state consumer protections; and 35 WHEREAS, the mechanism set up under S.40/H.R.3200 does not, and cannot by 36 its very nature, respond as state regulation does, to states' individual and 37 unique insurance markets and constituent concerns; and 38 WHEREAS, S.40/H.R.3200 has the potential to compromise state guaranty fund 39 coverage, and employers could end up absorbing losses otherwise covered by 40 these safety nets for businesses affected by insolvencies; and 41 WHEREAS, S.40/H.R.3200 would ultimately impose the costs of a new and 42 needless federal bureaucracy upon businesses and the public; and 43 WHEREAS, many state governments derive general revenue dollars from the 44 regulation of the business of insurance, including over $14 billion in premium 2 1 taxes generated in 2006, of which the state of Idaho generated over $80 mil- 2 lion; and 3 WHEREAS, S.40/H.R.3200 does not fully guarantee state premium tax revenues 4 for a long-term period of time and has the potential to draw premium tax reve- 5 nue from the states. 6 NOW, THEREFORE, BE IT RESOLVED by the members of the Second Regular Ses- 7 sion of the Fifty-ninth Idaho Legislature, the Senate and the House of Repre- 8 sentatives concurring therein, that the Idaho Legislature joins the National 9 Conference of Insurance Legislators in expressing its strong opposition to 10 S.40/H.R.3200 and any other such federal legislation that would threaten the 11 power of state legislatures, governors, insurance commissioners and attorneys 12 general to oversee, regulate and investigate the business of insurance and to 13 protect consumers. 14 BE IT FURTHER RESOLVED that the Secretary of the Senate be, and she is 15 hereby authorized and directed to forward a copy of this Memorial to the Pres- 16 ident of the Senate and the Speaker of the House of Representatives of Con- 17 gress, the congressional delegation representing the State of Idaho in the 18 Congress of the United States, to members of the United States Senate Commit- 19 tee on Banking, Housing and Urban Affairs, and the United States House of Rep- 20 resentatives Committee on Financial Services.
STATEMENT OF PURPOSE
RS 18092
The language found here is proposed by NCOIL, the National
Conference of Insurance Legislators who share concerns about the
optional federal charter system currently proposed. This system,
if enacted, would bifurcate insurance regulation, make national
carriers less responsive to Idaho needs and could threaten state
collection of premium taxes.
FISCAL IMPACT
None however passage of federal legislation S40/HR3200 could
threaten the fourth largest revenue source for the State of
Idaho, some $80M in 2006 collections.
Contact
Name: Senator John W Goedde
Phone: 332-1321
STATEMENT OF PURPOSE/FISCAL NOTE SJM 114