Maine Insurance

Nearly 51 years, while the public was in the process of winning the World War II, Congress passed a law apparently benign, insurers on one of the most adorable in the history of USA financial world. Instead, obtain a Federal Agency for the police of their activities, as well as the Securities and Exchange Commission made with securities firms since the 1930’s, the insurance industry could meet almost exclusively countries . The Congress could still write laws, insurers and the federal government would monitor a few special programs such as flood insurance. But for most consumers said they must learn about national legislators and above all politically appointed commissioners to ensure that the insurance industry covers government fair.

We hear a lot these days on the regulatory authority to the USA. Well, in the case of the insurance sector, which now controls $ 3.1 trillion in assets, Member States have clearly shown that they are not at work. “How many times do we, that is the illusion of control,” said the former insurance commissioner of Texas Robert Hunter, now director of the Insurance Consumer Federation of America. In fact, a four-month, 50 state investigation of money (with the help CFA) shows that insurers and agents, now dominate the regulatory system, the police, that the stack the deck against consumers. More specifically, insurers are free, advertising a reasonable investment products, it is very difficult to compare, share information to reduce costs and premiums stifle the seeds tried to reform such practices. Accordingly, Hunter figures that the public pays about 5% to 10% more for reporting as it should. Annual cost: not less than $ 65 billion per year.

Below are the highlights of our investigation:

On a large part of the insurance written laws. Although insurers employees represent less than 2% of the workforce American, at least 15% of national legislators in committees monitoring of insurance companies on legislation insurance agents or managers, or are otherwise in the industry. In 12 states, legislators in connection with insurers represent over 20% of these committees, such as table shows the page 54. US with the highest concentrations: Mississippi (40%), Louisiana (38%) and Arkansas (37%). FSC-Hunter said that the legislature heavily populated by legislators, in conjunction with the insurance industry are generally less likely to enact laws on the protection of consumer rights.

In country after the coup, there is a consumer “tourniquet between the insurance industry and insurance commissioners. Often, insurance, commissioner of industry, and many commissioners leave their jobs to work for insurance companies in highly paid jobs. The money found that the current commissioner of insurance of at least 19 countries have already an insurance executive, agent, owner of brokerage d insurance, a lawyer in an insurance company with clients or any other way with industry. CFA’s Hunter estimated that more than 100 former commissioners in charge of this sector as good. Such a pivoting allows the commissioners bias in favor of insurers in their decisions. After all the commissioners may be on foot in the lucrative work with insurers after the cessation of function, it may be less able to fight consistently for consumers or take the election period . Remarkable Two rounds of doors: former Virginia Insurance Commissioner Steven Foster may have tripled his salary of $ 96,500 to jump to $ 219 billion in May Prudential Insurance for Work in the Company Compliance Office. Also in May, Elaine McReynolds ( a photo on page 51) to leave his post as head of state flood insurance for a second visit with $ 10 billion American General Life & Accident to Nashville. McReynolds had previously worked for the same insurer before serving as the Commissioner of Insurance Tennessee. (For a look at how banned substances McReynolds offer discounts insurance in case of flooding, you’ll find in the box below).

– Insurers and agents shower legislator million in this campaign of lobbying and contributions of quality. For three years, until 1996, the insurance industry has contributed a total of $ 20.8 million over the Congress election campaigns and political party organizations. It is 56% higher than the $ 13.3 million, as securities firms were almost twice as much as $ 11.9 million vis-à-vis banks. Another example: During the last legislature, Washington State choice, the insurer has contributed $ 338285 to candidates, more than any group, with the exception of the health professions and unions.

Insurance commissioners and spokesman for the industry vehemently deny that the state regulation, it has failed consumers. “I am aware that there are cases in which we could do a better offer,” says Brian Atchinson, Maine Superintendent of Insurance and the chairman of the National Association of Insurance Commissioners. “But in most cases, our is more strict control of the industry, and we are an effective means of protection of consumer rights. “And the American Council of Life Insurance spokesman Ken Vest farm and rejects the idea that the policy premium is 5% 10% higher than they should be. “Prices are regulated by a cheap and competitive,” he says.

As might be expected, the state legislature but also by the fact that their access to the industry as not to jeopardize their membership of components. Many even claim that their background insurance is an asset. Republican Senator Larry Kimble, an insurance agent, aims to West Virginia’s banking and insurance committee, said the report quality: “It is important that people of legislative power to know something about the industry to monitor them. “Similarly, insurance groups say their campaign contributions or is not to influence legislators wrongly benefits consumers.