National Insurance Act of 2006

Bill: 109-s-2509
Sponsor: Sen. Sununu, John E. [R-NH]
Introduced: 2006-04-05 in the Senate
Policy area: Finance and Financial Sector
Subjects: Administrative fees
Administrative remedies
Antitrust law
Bankruptcy
Casualty insurance
Commerce
Consumer protection
Corporate governance
Corporate mergers
Corporations
Crime and Law Enforcement
Criminal investigation
Data banks
Department of the Treasury
Economics and Public Finance
Electronic data interchange
Electronic government information
Executive reorganization
Federal preemption
Federal-state relations
Fines (Penalties)
Foreign Trade and International Finance
Foreign corporations
Fraud
Government Operations and Politics
Government paperwork
Governmental investigations
Holding companies
Injunctions
Insurance agents
Insurance companies
International Affairs
International cooperation
Judicial review
Law
Licenses
Life insurance
Local taxation
Marketing
Nonprofit organizations
Ombudsman
Property insurance
Reinsurance
Science, Technology, Communications
Social Welfare
State laws
State taxation
Taxation
Trusts and trustees

Summary:
action_date: 2006-04-05
text: 
 National Insurance Act of 2006 - Establishes in the Department of the Treasury an Office of National Insurance (ONI), headed by a Commissioner of National Insurance, with Divisions of Insurance Fraud and of Consumer Affairs, and an Office of the Ombudsman.
 
Authorizes the Commissioner to supervise, regulate, and provide for registration of insurance self-regulatory organizations.
 
Requires the Commissioner to supervise National Insurers and National Agencies, including chartering and licensing. Removes them, as well as federally licensed insurance producers from state oversight of insurance business practices.
 
Authorizes the Commissioner to provide for the organization, operation, and regulation of National Insurance Companies and National Insurance Agencies, including U.S. branches of non-U.S. Insurers.
 
Requires National Insurers to obtain a federal license.
 
Provides for conversion of State Insurers to National Insurers or State Insurance Agencies to National Agencies, and vice versa.
 
Prescribes requirements for National Life Insurer product regulation.
 
Authorizes the Commissioner to: (1) license insurers that are not National Insurers to provide reinsurance; and (2) issue federal insurance producer licenses.
 
Provides for: (1) mergers, consolidations, and acquisitions of National Insurers and National Agencies; and (2) conversion of stock life insurers to National Life Insurer in mutual form, and vice versa.
 
Subjects National Insurers and National Agencies to state taxation.
 
Prohibits states from preventing or restricting National Insurers from engaging in specified insurance business practices.
 
Requires registration with the Commissioner of National Insurers that belong to an insurance holding company system.
 
Authorizes the Commissioner to appoint the ONI as receiver for a National Insurer for rehabilitation or liquidation, as appropriate, in a case of insolvency or one of other specified hazardous financial conditions.
 
Requires National Insurers to join guaranty associations in each state, which may levy assessments on them for purposes of insolvency protection.
 
Establishes a National Insurance Guaranty Corporation to provide benefits to policyholders of a National Life Insurer placed in federal receivership.
 
Applies federal antitrust laws to National Insurers, National Agencies, and federally licensed insurance producers, except regarding standard insurance policy forms.
 
Exempts National Insurers, National Agencies, and federally licensed insurance producers from state regulation, except as expressly provided in this Act.


Legislative actions:
action_date: 2006-04-05
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2006-04-05
text: Introduced in Senate