Geithner Says Federal Insurance Charter Is Important Part of Economic Plan
On February 10, 2009, Treasury Secretary Timothy Geithner stated that some form of federal insurance oversight will likely be a part of a forthcoming financial regulatory overhaul by the Obama administration.
Geithner already has been urged by a group of U.S. House members, led by Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., to create a federal insurance office within the Treasury Department or assign a high-level Treasury appointee an insurance portfolio, to fill a void on insurance oversight and expertise at the federal level. Bean and Royce were sponsors of the House version of the National Insurance Act in the 110th Congress, and have announced plans to introduce legislation dubbed the National Insurance Consumer Protection and Regulatory Modernization Act.
Appearing before the Senate Banking Committee, Geithner offered his thoughts on the potential for a federal insurance regulator, in response to questions by Sen. Tim Johnson, D-S.D. In the last two sessions of Congress, Johnson has served as co-sponsor of the National Insurance Act, which would create an optional federal charter system for insurers and producers in both the life and property/casualty sectors.
