Royce's legislation is a companion bill to S. 2509, legislation introduced by Senator Tim Johnson, D-S.D., and Senator John E. Sununu, R-N.H. Additionally, Royce's bill aims to create a Prompt Corrective Action (PCA) provision. A PCA was previously instituted by Congress for the banking system to augment safety in the industry.
"I applaud the efforts and leadership of Senators Sununu and Johnson. I believe the time has come for both Houses of Congress to address the inefficiencies in the insurance marketplace. The National Insurance Act would create a federal regulatory agency within the Treasury Department; however, it would leave the current state regulatory system in place.
"An insurance provider could choose to be regulated by the 50 states or by the Office of National Insurance. This concept is not new - the banking system has lived under such a framework for much of our nation's history," said Royce.
Visit www.TakingTheHill.com, to view the text of both H.R. 6225 and S. 2509.