WASHINGTON, March 31 /PRNewswire-USNewswire/ -- The National Association of Professional Insurance Agents (PIA National) is opposed to the insurance-related proposals outlined in a report by the Treasury Department released today.

The national Board of Directors of PIA on March 2 unanimously passed a resolution reaffirming the association's opposition to all proposals calling for Optional Federal Charters (OFC) and the creation of a federal insurance regulator - two recommendations made by Treasury Secretary Henry Paulson in the report released March 31.

"The proposals unveiled today by Treasury Secretary Paulson are being billed as a strengthening of financial services regulation but in the case of the recommendations regarding insurance, the opposite is true," said PIA National President Robert Page. "In reality, what is being proposed for insurance is more deregulation under the guise of strengthened regulation, along with a transfer of regulatory authority from the states to the federal government."

"PIA is opposed to federal insurance regulation," Page said. "PIA is on record in opposition to all proposals calling for Optional Federal Charters (OFC) and the creation of a federal insurance regulator. Let there be no doubt: PIA is opposed to these proposals and is steadfast in support of state regulation of insurance."

Page noted that federal involvement is being proposed as a way of making insurance regulation more efficient, but that the subprime mortgage meltdown occurred under federal regulation. "The subprime crisis happened under federal regulation at the same time that the insurance industry, which is under state regulation, remained on a firm financial footing while achieving record profits. The insurance industry is solvent, strong and well regulated at the state level. It needs to stay that way."

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America (sm). PIA's web address is http://www.pianet.com/.

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Source: National Association of Professional Insurance Agents

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