States to Push Congress on Insurance Sales Rules

By Rehm, Barbara A. | American Banker, July 30, 1996 | Go to article overview
Save to active project

States to Push Congress on Insurance Sales Rules


Rehm, Barbara A., American Banker


State lawmakers plan to lobby Congress for legislation that would force national banks to obey all state insurance regulations.

The National Conference of State Legislatures, holding its annual meeting here, is expected to endorse today a resolution asking Congress to rein in the Office of the Comptroller of the Currency, which has claimed the right to override state laws that restrict national bank insurance sales.

State Rep. Robert Brawley, R-N.C., put it simply when he told lawmakers Sunday that the Comptroller's Office is trying to "bypass state regulators."

Ironically, the state officials were piqued by draft insurance guidelines that OCC officials have insisted were intended as a peace offering. The proposal, released in June, noted that state licensing, training, and consumer protection laws apply to national banks. But the guidelines said banks could challenge other types of state insurance laws and the Comptroller's Office would make case-by-case determinations on which apply. To judge this, the OCC will rely on the recent Barnett case, in which the U.S. Supreme Court said state laws may not prevent or significantly interfere with banks' insurance operations.

But state officials claim the OCC's interpretation of the decision is too broad. Speaking at the state legislatures' meeting Sunday, Maine Commissioner Brian Atchinson said the OCC's draft guidelines would void any law that "frustrates, hampers, impairs, or interferes with the ability of a national bank to exercise its insurance authority."

"That's not the Barnett standard," Mr. Atchinson said. "It's not up to the Comptroller of the Currency to decide when state laws apply and when they don't."

Mr. Atchinson and other state insurance commissioners will meet with Comptroller Eugene A. Ludwig and his senior staff Thursday to discuss the draft guidelines.

Julie Williams, the OCC's chief counsel, said Monday that the agency took the language to which Mr. Atchinson and other regulators object straight from a series of cases cited by the Supreme Court in the Barnett decision.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

States to Push Congress on Insurance Sales Rules
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?