John discusses details of the “National Insurance Act of 2006,” legislation he introduced with Senator Tim Johnson (D-SD), at a Capitol Hill press conference in April 2006.

Financial

Recognizing that a more uniform regulatory system stands to substantially improve the environment for those who buy, sell, and underwrite life and property/casualty insurance, John and Senator Tim Johnson (D-SD) introduced the “National Insurance Act of 2006” (S. 2509) on April 5, 2006.

The comprehensive measure – supported by the American Insurance Association, the American Council of Life Insurers, the Council of Insurance Agents and Brokers, the Agents for Change, the American Bankers Insurance Association, and the Financial Services Roundtable – aims to provide insurers with the option of choosing federal regulation rather than state regulation under an “optional federal charter” regulatory system.

The existing governing structure for the insurance industry for life and property/casualty insurance remains a patchwork of state regulations that has stifled competition, innovation, and growth. State commissioners may have hoped to achieve uniformity and market-based reform within the state regulatory scheme, but those improvements have simply not occurred and are not expected in the near future. Streamlining an overwhelming and tangled web of state rules for financial regulation, licensing, policy forms, rates, and market conduct exams under an “optional federal charter” system will encourage greater competition. Moreover, new and innovative insurance products will come to the market more quickly.

This legislation has been referred to the Senate Committee on Banking, Housing, and Urban Affairs, of which John is a member. The Committee held hearings on insurance regulation and reform, including the option federal charter, on July 11 and 18, 2006.

• Click here for link to outline of “National Insurance Act.”

• Clink here for link to PDF of S. 2509.

John continues to fight for stronger federal oversight of the housing-finance Government Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac, and remains committed to bringing legislation to create an independent federal regulator to the Senate floor for a vote. New authority over the safety and soundness and mission of the GSEs is long overdue, and this effort is absolutely necessary to guarantee the continued strength of our nation’s mortgage markets.

A Member of the Senate Banking Committee, John is also co-author of the “Federal Housing Enterprise Regulatory Reform Act of 2005” (S. 190). He first introduced this legislation with Senators Chuck Hagel (R-NE) and Elizabeth Dole (R-NC) in 2003 and again in 2005. Members of the Banking Committee considered and approved the measure on July 28, 2005.

Specifically, S. 190 would:

- Create an independent world class regulator to oversee the safety and soundness of the housing enterprises;

- Give the new regulator the authority to “wind down” a failing GSE and protect against a taxpayer bailout;

- Give the new regulator greater discretion in raising capital standards to protect against insolvency;

- Provide clear Congressional guidance and authority for the regulator to determine the type and amount of assets Fannie and Freddie hold in their massive portfolios and refocus the GSEs by anchoring their investment portfolios to their statutory housing mission;

- Give the new regulator approval power over new programs and activities proposed by a GSE;

- Strengthen the GSEs affordable housing goals and require the annual audits of Fannie Mae’s and Freddie Mac’s affordable housing programs to ensure that these programs support the enterprises’ housing mission; and,

- End presidential appointments to the board of directors of Fannie Mae and Freddie Mac, and require all Federal Home Loan Bank directors to be elected.

On December 22, 2005, President Bush signed into law the “Presidential $1 Coin Act of 2005” (S. 1047) – bipartisan legislation introduced by John that will place the images of United States Presidents on a new $1 coin and bolster its circulation while generating millions of dollars for consumers, businesses, and the federal government.

John based the measure on the successful 50-State Quarter Program established by Congress in 1997 – an initiative that has helped renew interest in coins, coin collecting, and the history of our nation’s states in addition to quadrupling the number of quarters in circulation and earning the federal government millions of dollars.

An easy-to-use $1 coin will increase efficiency for millions of low-dollar transactions that occur each day in our country. By making these exchanges more efficient with an easy-to-use $1 coin, businesses and consumers stand to reap enormous savings. In addition to its economic benefits, the $1 coin is a valuable educational tool – much like the 50-state quarter series – that will help inspire interest in the history of the leaders of our country.

The expanded use of a $1 coin would deliver savings for the public sector as well: Dollar coins can remain in circulation for 30 years or more – much longer than dollar bills, which typically circulate for about 18 months. Reducing the cost of replacing paper notes would help the federal government save limited resources, providing a significant benefit to taxpayers.

Further information on the United States Senate Committee on Banking, Housing, and Urban Affairs can be found at www.banking.senate.gov.