Letter to Senators Dodd and Shelby, and Congressmen Frank and Bachus regarding National Regulatory Modernization

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This letter written to Senators Dodd and Shelby, and Congressmen Frank and Bachus responds to a letter signed by a number of state governors requesting these representatives to reject legislation that would provide for federal oversight of insurance companies.

This letter of response addresses three assertions made by the state governors.

• Claim one: “The state regulatory system… has remained sound despite thecatastrophic disruptions we have witnessed as a result of failedfederal oversight and regulation.”
• Claim two: “States. . . often lead the way with regard to reform and innovation and this is true of insurance regulation.”
• Claim three: “Under the Treasury model, states stand to lose revenuegenerated from current fees and assessments. The potential outcome ofsuch actions could further endanger our ability to provide criticalhealth care, education, and unemployment resources to citizens of ourrespective states.”