As reported previously in this space here and here, OFC legislation (entitled the "National Insurance Act") was resubmitted in the House and Senate earlier this year. While testimony from the NAIC and various trade organizations was taken by the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises on October 3 and October 30, the current consensus is that no OFC legislation will be passed this year.
However, further debate on OFC legislation has been sparked by the Office of the Treasury's planned review of all federal financial services regulation, which is to include a separate focus on the insurance industry. By notice published in the Federal Register, the Treasury sought comments concerning the proposed review through a series of questions. (Click here to review the notice.) (One opponent of OFC legislation contends that the questions themselves are slanted with a pro-OFC bias; click here to read a letter from the National Association of Professional Insurance Agents (PIA) to the Treasury.)
With the formal comment period coming to a close on November 21, trade organizations peppered Treasury Secretary Henry Paulson with submissions concerning OFC. OFC opponents submitting comments include the National Association of Mutual Insurance Companies (NAMIC), the National Association of Professional Insurance Agent and the Independent Insurance Agents & Brokers of America, while proponents submitting comments include the American Insurance Association and the Competitive Enterprise Institute.