The PIA of Hawaii Opposes
Treasury Department’s Insurance Proposals

The PIA of Hawaii along with the National Association of Professional Insurance Agents is opposed to the insurance-related proposals outlined in a report by the Treasury Department that was released on April 1.

The PIA opposed to all proposals calling for the Optional Federal Charters (OFC) and the creation of a federal regulator – two recommendations made by the Treasury Secretary Henry Paulson in the report released on March 31.

“The proposals unveiled by Secretary Paulson are being billed as a strengthening of financial services regulation but in the case of the recommendations regarding insurance, the opposite is true,” said PIA National President Robert Page.  “In reality, what is being proposed for insurance is more deregulation under the guise of strengthened regulation, along with a transfer of regulatory authority from the states to the federal government.”

“PIA is opposed to federal insurance regulation,” Page said.  “PIA is on record in opposition to all proposals calling for Optional Federal Charters (OFC) and the creation of  a federal insurance regulator.  Let there be no doubt: PIA is opposed to these proposals and is steadfast in support of state regulation of insurance.”

The number of insurers put under state supervision fell to its lowest point in a decade according to Standard and Poors.  Insolvencies have steadily declined in recent years.  In light of all the problems in the mortgage area we must be doing something right!