Senate Insurance Deregulation Bill From Jon Tester, Mike Johanns Would Benefit Companies

WASHINGTON -- The Senate Banking Committee is considering a new bill to deregulate insurance agent licensing requirements, drawing ire from consumer advocates.

While partisan squabbling for years has blocked the passage of any serious economic reforms, the new insurance bill is the latest of several recent deregulatory efforts to garner bipartisan support.

Current law requires insurance agents to acquire a license to sell insurance policies in the state where the policy applies. But a bill authored by Sens. Jon Tester (D-Mont.) and Mike Johanns (R-Neb.) would create a new federal system that would automatically qualify anyone who obtains a license in any state to sell insurance in every state.

Insurance agents and companies have long complained about the fees and red tape associated with having to register to sell policies in multiple states. Consumer groups, however, emphasize that different states have different local risks and laws; for example, a Mississippi property insurance expert may not be familiar with the appropriate rates for insurance related to hurricanes in Florida or earthquakes in California. As a result, consumers could pay for policies that are inadequate or wrongly priced. ...........................(more)

The complete piece is at: http://www.huffingtonpost.com/2013/06/03/senate-insurance-deregulation-bill-tester-johanns_n_3368314.html?ncid=txtlnkushpmg00000037