Reply #22: Merkley amendment still viable

[eridani]

http://www.citizen.org/Page.aspx?pid=3257&frcrld=1

Buried in the 1200-page Senate financial reregulation bill we found a sneaky provision that would undermine existing state insurance regulations – including on solvency – if they conflict with trade agreements! Yup, the “Office of National Insurance” (ONI) proposal would newly empower the Treasury Department to unilaterally determine that existing consumer protections violate international agreements and then preempt such states policies.

Thankfully Senator Jeff Merkley (D-Oregon) is leading the effort to defang this crazy proposal. The "Merkley Amendment" would fix this. Senator Merkley deserves our thanks – and help! Please take action today!

I am writing to oppose the Office of National Insurance (ONI) provisions in Title V - Office of National Insurance, of S. 3217 the Restoring American Financial Stability Act of 2010. These provisions would authorize the Treasury Department to preempt existing state insurance consumer protections, including on solvency, based on international agreements establishing insurance regulatory policy that Treasury would be authorized to enter into without congressional approval.

In sum, these provisions would newly empower Treasury to weaken existing state insurance regulation in the name of expanding access for foreign insurance firms to the U.S. market.

This certainly is not what the American public is demanding. We expect an overhaul that remedies the failed regulation of the financial services industry, and you have promised that Congress will deliver that reform.

It is incomprehensible to me that a measure which promotes further deregulation of the insurance industry and threatens existing state-level consumer protections would be included as part of the financial re-regulation package.

I urge you to cosponsor today the “Merkley amendment” that fixes the ONI mess. If you join with your Senate colleagues in demanding that the Merkley amendment become part of the Senate reregulation package, you can stop this backdoor deregulation.