Insurance Partner Thomas Morante and Financial Services Senior Counsel David Sofge wrote an article titled "The Rise and Fall of the Federal Insurance Office" featured in Law 360.
In the article, Mr. Morante and Mr. Sofge detail attempts to increase federal control of the insurance business during the global financial crisis. The National Insurance Protection Act (NICPA) was introduced by members of Congress in part to create an Office of National Insurance (ONI) with a commissioner appointed by the president. Among other tasks, the ONI would have supervisory responsibility regarding life insurance companies, property and casualty insurers, insurance producers, and agents and brokers.
Despite these calls for federal financial and insurance reform, Mr. Morante and Mr. Sofge wrote that momentum for NICPA has begun to slow, halting radical reform of the insurance regulatory landscape and casting doubt over the creation of an ONI. Mr. Morante and Mr. Sofge added that proponents of state-based regulation are likely to prevail as support for federal regulation wanes in Congress.