Targeted regulation could assist everyone. Most of the state departments of insurance (DOIs) impose the same regulations on all companies domiciled in the state regeardless of the size, lines of business or financial structure of the company.
If the larger carriers could opt out, maybe the DOIs could find some balance for the regionals and state specialists that are remaining.
Let’s keep in mind that the feds have plenty of power – TRIA, discounting of loss reserves, Treasury reviews for bonding, SEC, RRG act, etc.
With their federal home loan banks and federally sponsored GSEs FNM & FRE, we need an additional layer of federal sloth like we need a bullit in the head.
This is a ludicrous idea placing everything under one centralize authority, no checks and balances, having someone in Washington who have no idea of the needs of the local consumers, more red tape which will ultimately raise premiums. Centralization is not good for the local needs of the consumers. Decentralization which is how it is presently is the most efficient means, with better service of the needs of consumers, a local authority which understands the local markets is always better for the consumer.
If I am correct, this whole fiasco from paulson today started with the sub-prime mortgage problems and also the graham leahy act which allowed financial servies business’s to go into each others business. This brought banks into offering insurance products in which the tellers they hire have no knowledge of the contracts they are selling, thus hurting the consumers such as in New Orleans by not having the flood insurance needed as an example. It was the banks which are presently regulated by the federal reserve who offered the sub prime mortgages in collusion with the investment banks that caused the problem. Why is it the Fed did not prosecute any of the banks for using predatory practices on aquiring these mortgages without doing their due diligence on offering mortgages to questionable candidates, who had little or no ability to pay off these mortgages. Even Greenspan believed in Fixed rate mortgages, but said that the adjustable rates are a great instrument. I think it is time to place the blame where it really belongs with the federal reserve.
Bad idea… “On size fits all” does not apply to the Insurance Industry..even on an “optional” basis… just like Spitzer took care of the bad apples in New York, and Poizner is getting tough on fraud, each state should handle their own problems individually…
It’s about time, and the stricter the better
How much is the public supposed to put up with from the shenanigans (nice word) from the crooks out there
If they have nothing to hide, they have nothing to fear
Junk bonds, Enron, Buffet, sub-prime, geez where does it end
And make the penaltie$ AND JAIL time generous
Don’t kid yourself. This is the Federal Govt’s latest money grab. And it is a big one. Insurance Premium Taxes are a huge part of each State’s general funds budget.
Oh this makes a lot of sense. The Banking and Mortgage industry created the mess that we now have (credit crisis as a result of hybrid loans and housing bubble) and now because the Bond Insurers did not have enough capital to bail out billions of dollars in foolish loans, it is the state regulators fault. Brilliant. Please don’t let the Bush administration make anymore big changes.
Hey Mike has as a great idea. Lets just completely de-regulate the insurance industry like the airlines did. How about the truckers?
Another post said something about Free market forces. Sure let the biggest and best with the most capital squeeze out or force the smaller regionals to merge with them and then lets see after a little while how much choice we will have in our insurance purchases. Don’t you love those minimum premiums.
I am not for deregulation, I believe that regulation has to be decentralized to the state level and county level. I have been in this business long enough to know that without regulation, independent agents and brokers will create havoc and the poeple who will be hurt will be the consumer.
The Fed on the other hand along with the banks are the ones who created the mess we are in today with the sub-prime mortgages. Having my office next door to questionable mortgage brokers in the past 5 years who all happen to be out of business today, were peddling these sub-primes by telling people go with interest only and take all of the equity out of your home. I felt that this was larcenous back then as we all know what is happening today. So where was the state and the fed back then?
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Targeted regulation could assist everyone. Most of the state departments of insurance (DOIs) impose the same regulations on all companies domiciled in the state regeardless of the size, lines of business or financial structure of the company.
If the larger carriers could opt out, maybe the DOIs could find some balance for the regionals and state specialists that are remaining.
Let’s keep in mind that the feds have plenty of power – TRIA, discounting of loss reserves, Treasury reviews for bonding, SEC, RRG act, etc.
With their federal home loan banks and federally sponsored GSEs FNM & FRE, we need an additional layer of federal sloth like we need a bullit in the head.
This is a ludicrous idea placing everything under one centralize authority, no checks and balances, having someone in Washington who have no idea of the needs of the local consumers, more red tape which will ultimately raise premiums. Centralization is not good for the local needs of the consumers. Decentralization which is how it is presently is the most efficient means, with better service of the needs of consumers, a local authority which understands the local markets is always better for the consumer.
If I am correct, this whole fiasco from paulson today started with the sub-prime mortgage problems and also the graham leahy act which allowed financial servies business’s to go into each others business. This brought banks into offering insurance products in which the tellers they hire have no knowledge of the contracts they are selling, thus hurting the consumers such as in New Orleans by not having the flood insurance needed as an example. It was the banks which are presently regulated by the federal reserve who offered the sub prime mortgages in collusion with the investment banks that caused the problem. Why is it the Fed did not prosecute any of the banks for using predatory practices on aquiring these mortgages without doing their due diligence on offering mortgages to questionable candidates, who had little or no ability to pay off these mortgages. Even Greenspan believed in Fixed rate mortgages, but said that the adjustable rates are a great instrument. I think it is time to place the blame where it really belongs with the federal reserve.
Bad idea… “On size fits all” does not apply to the Insurance Industry..even on an “optional” basis… just like Spitzer took care of the bad apples in New York, and Poizner is getting tough on fraud, each state should handle their own problems individually…
It’s about time, and the stricter the better
How much is the public supposed to put up with from the shenanigans (nice word) from the crooks out there
If they have nothing to hide, they have nothing to fear
Junk bonds, Enron, Buffet, sub-prime, geez where does it end
And make the penaltie$ AND JAIL time generous
Don’t kid yourself. This is the Federal Govt’s latest money grab. And it is a big one. Insurance Premium Taxes are a huge part of each State’s general funds budget.
Oh this makes a lot of sense. The Banking and Mortgage industry created the mess that we now have (credit crisis as a result of hybrid loans and housing bubble) and now because the Bond Insurers did not have enough capital to bail out billions of dollars in foolish loans, it is the state regulators fault. Brilliant. Please don’t let the Bush administration make anymore big changes.
Hey Mike has as a great idea. Lets just completely de-regulate the insurance industry like the airlines did. How about the truckers?
Another post said something about Free market forces. Sure let the biggest and best with the most capital squeeze out or force the smaller regionals to merge with them and then lets see after a little while how much choice we will have in our insurance purchases. Don’t you love those minimum premiums.
Let’s see – the feds regulate the stock market, major brokerages and banks – which are now in turmoil with values in free fall.
The states regulate insurance, which has so far largely avoided any of these problems, despite the growing world-wide nature of the meltdown.
And the plan suggests benefits to the insurance industry and consumers from federal regulation? Get serious!
I am not for deregulation, I believe that regulation has to be decentralized to the state level and county level. I have been in this business long enough to know that without regulation, independent agents and brokers will create havoc and the poeple who will be hurt will be the consumer.
The Fed on the other hand along with the banks are the ones who created the mess we are in today with the sub-prime mortgages. Having my office next door to questionable mortgage brokers in the past 5 years who all happen to be out of business today, were peddling these sub-primes by telling people go with interest only and take all of the equity out of your home. I felt that this was larcenous back then as we all know what is happening today. So where was the state and the fed back then?