Published Since 1865 Boston, Mass. July 23, 2010 Vol. 267 No. 2

Optional Federal Charter a Sure Topic for
Next Year, Congressman Frank Tells NCOIL

“Change is Hard to Accomplish,” He Says, But Debate Will Ensue

BOSTON — Although the financial services regulatory reform legislation recently passed by Congress will have minimal impact on the property-casualty insurance industry, a primary topic of debate next year is sure to be the optional federal charter, according to Congressman Barney Frank (D-Mass.).

“You don’t need to alter a system that’s working well,” said Frank, explaining that he has a great deal of respect for the state legislators and regulators. He added that he has plenty to do at the federal level and favors keeping insurance regulation with the states.

Frank, chairman of the United States House of Representatives Financial Services Committee and one of the chief architects of the “Wall Street Reform and Consumer Protection Act,” recently spoke to attendees of the National Conference of Insurance Legislators (NCOIL) and shared his commitment to state regulation.

However, the OFC cannot be kept at bay, since there are a significant number of supporters for the idea in the House.

Frank noted, though, that “change is hard to accomplish.” The nation’s independent insurance agents are against the OFC, he commented.

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Broker Survey Sees “Melting”

In This Issue

Commercial Pricing in 2nd Qtr.

Financial Overhaul Bill Evaluated by Industry

Flood Reform Passes House 5

WASHINGTON, D.C. — Commercial prices are “melting” in the summer heat, so to speak, according to the most recent survey of insurance producers by The Council of Insurance Agents & Brokers.

R.I. DBR Issues Fraud Bulletin 7

Home Claim Satisfaction Breeds Loyalty

NCOIL Addresses Aftermarket Parts 9

In the second-quarter Commercial P/C Market Survey, available capacity combined with insurers’ pursuit of market share in the commercial property-casualty marketplace has resulted in another quarter of declining prices on renewal. On average, renewal rates dropped by about 6% in the second quarter, compared with a 5% decrease in the first quarter of 2010.

Legal Dimensions: The Constitutionality of Tort Reform 10

Actuaries Updated on Credit 13

Standard Answers: Hiring a Contractor

Executive Suite

continued on page 25

What Life Producers Need to Know 19

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IIABA Supports Estate Tax Relief

In Memoriam: Joseph J. Maher Jr.

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