It may come as a shock to those who have come to believe that insurers have always sought deregulation that the National Association of Independent Insurers (NAII) led the defense of rate and farm regulation under the McCarran-Ferguson Act. As chair of the Council of Economic Advisors, Alan Greenspan created a task force on deregulation that drafted a bill to amend McCarran-Ferguson. The amendments would have prohibited the states from regulating rates or forms. The flaw in Greenspan's thinking has undermined the strength of the economic system. Greenspan's deregulation efforts littered the investment holdings of the greatest insurers -- whether the vagaries of insurance accounting report it or not, with little bundles of contagion. At present, the proposal seems focused on life insurance products; however, it would not be out of the question to apply the same oversight to property/casualty lines that cover assets associated with loans.
THE RISE AND FALL OF DEREGULATION Kevin Hennosy Rough Notes; Sep 2009; 152, 9; Docstoc pg. 180 Reproduced with permission of the
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