Federalization Of Workers Comp Senate Bill
The Senate bill to Federalize insurance and Workers Comp appeared on the radar this week.
. Last week, I posted on 24 hour coverage and its negative effects on the Workers Compensation process. I had thought that bill would be the last we would hear of any federalization of Workers Comp and that the bill would not even make it to a vote. I was wrong as the following came across the wire yesterday evening.
The chairman of a key House subcommittee has released draft legislation that would establish a new Federal Insurance Office within the Treasury Department. Rep. Paul Kanjorski, D-Pa., who chairs the House Financial Services Committee’s Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, unveiled the Federal Insurance Office Act of 2009 on Thursday.
According to the draft language, the Federal Insurance Office (FIO) would have the authority to monitor all aspects of the insurance industry and assist the Treasury secretary in administering the federal terrorism insurance program.
In addition, the new office would coordinate federal efforts and establish federal policy “on prudential aspects of international insurance matters” and determine whether the International Insurance Agreements on Prudential Matters pre–empt some state insurance measures. The document resembles earlier bills introduced by Rep. Kanjorski to set up a Federal Insurance Office within Treasury. The full committee is slated to hold a hearing Oct. 6 on the draft legislation and other regulatory reform draft bills.
With bills being introduced over and over again to federalize Workers Compensation and all insurance lines, the subject is just not going to drop. I suggest contacting your Senators and State Representatives as this legislation could harm the Workers Comp landscape that is handled very well on a state-level basis.
©J&L Risk Management Inc Copyright Notice