U.S.
Representative Ginny Brown-Waite (FL-05)
today applauded House passage of H.R. 5637, the Nonadmitted and Reinsurance Reform Act of 2006.Regulatory problems have caused significant
disruptions in the marketplace, including increased bureaucratic holdups,
paperwork and conflicting tax requirements.The legislation was introduced by Rep. Brown-Waite in June 2006 and passed
the House today on a bipartisan and unanimous vote of 417-0.
“Non-admitted insurance
reform is a pro-consumer piece of legislation,” said Rep. Brown-Waite.“H.R. 5637 makes it clear that the state
where the policyholder resides should be the state that is in charge of
regulation.Simplifying and streamlining
the insurance market will bring savings to consumers and companies doing
business across state lines.”
Surplus lines insurance
(non-admitted insurance) is insurance for unusual commercial risks where
coverage is unavailable in the traditional marketplace.Typically, this is insurance for the Space
Shuttle, toxic chemicals, new inventions, or insurance on homes and businesses
in a scarce market.The overwhelming
majority of these policies are purchased by sophisticated commercial entities.
“When introducing H.R. 5637,
my goal was to reduce the bureaucracy associated with the insurance market,”
continued Rep. Brown-Waite.“I think
this is a great way to bring some reform to the surplus lines and reinsurance
industry, streamlining the market and bringing cost savings to consumers.I thank Chairman Oxley and Rep. Baker for
their support and applaud the House for today’s overwhelming passage of my
legislation.”
Reinsurance is insurance for
insurance companies that helps them mitigate their risk from individual
consumer policies.By purchasing
reinsurance, insurance companies can continue to offer policies to consumers in
each of the markets they offer products.H.R. 5637 has 20 co-sponsors in the House and more than 40 insurance
associations supporting the legislation.The bill now goes to the Senate for consideration.
Veterans
