[Congressional Record Volume 140, Number 134 (Thursday, September 22, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                   PROTECTION FOR INSURANCE CONSUMERS

                                 ______


                          HON. CARDISS COLLINS

                              of illinois

                    in the house of representatives

                      Thursday, September 22, 1994

  Mrs. COLLINS of Illinois. Mr. Speaker, I am pleased to join with the 
distinguished chairman of the Energy and Commerce Committee as an 
original cosponsor of this important consumer protection legislation, 
the Insurance Sales and Underwriting Consumer Protection Act of 1994.
  This legislation stands for a very simple principle--anyone who sells 
or underwrites insurance in a State should comply with the insurance 
regulatory requirements of the State, specifically including the 
consumer protection requirements.
  While this is a simple principle which should be obvious to all, it 
is necessary to restate it as Federal law for two reasons. First, some 
institutions that sell or underwrite insurance have claimed they are 
above the law when it comes to selling or underwriting insurance. These 
institutions claim that because they are not insurance companies, they 
don't have to comply with the same regulatory requirements that 
insurance companies or insurance agents have to comply with. This is 
unfair and leaves consumers without critical protections.
  Second, recent revelations regarding the deceptive sale of life 
insurance products have indicated that some insurance companies also 
ignore these crucial State consumer protection requirements. While the 
legislation contemplates that States would continue to have the 
authority to enforce their own requirements, this Federal legislation 
would be a backstop if States fail to take action to protect consumers.
  I am not necessarily satisfied that current State requirements are 
adequate to protect consumers, and this is an issue that Congress will 
continue to pursue. However, at a minimum, I think all should agree, 
those who sell or underwrite insurance should comply with the State 
requirements.
  This bill is an attempt to put this simple principle into law and 
improve the protections for insurance consumers.
  This legislation is supported by a broad coalition including 
insurance companies, insurance agents, and the Consumer Federation of 
America, and I urge my colleagues to support it.

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