New York Insurance

The local insurance agents are divided, if a new Federal Constitution, the regulatory authority for the supervision of insurance companies is good or bad for business.

As part of its proposals for the revision of packages from the country’s financial situation, the regulatory agencies, the Federal Reserve has proposed a national agency regulating insurance companies that are now in most states.

The Fed is the argument that a national regulatory authority, the regulation of energy.

Participation is voluntary, but, meaning that insurance can decide if they want, by the federal police security or a state. In the United States the standards are less stringent, companies can for the supervision of the state, which, in fact, the federal requirements defang.

The New York State Insurance Department abuses of consumers, more than 70000 complaints a year. Multiply that by 50 states, and this is the challenge there is any proposals of the Confederation, the regulatory authority, said David Neustadt, a spokesman for the department.

“We are able, for a quantity of these problems are not all of them but many of them, because we have a good strong relationship with business, which we govern,” he said. “If we have to protect consumers, what you have to replicate that on a federal level alone, with an organization of the situation, this type of service at the national level.”

A number of standards of the Confederation would probably be even better for consumers and the creation of a more competitive, more equitable environment for insurance companies, “said Christopher Joy, President of Joy Insurance Agency Inc. Middletown.

This is because, under the federal regulations, all would have to comply with the same standards. It’s good for agencies in New York, some stricter rules in the country and have difficulty against the agents of competition with the states of the standards more lenient, “said Joy.

“I think everyone would need to work a little harder,” he said. “When you are perhaps in a more indulgent, where the rules are not quite as ethical, you should work even harder to create new ladders.”

Rationalization

But for Robert Howerter, the district head of Langdon Ford Financial Group in Middletown, although a number of standards in theory would be good for consumers and competition, the “Bund” and to “rationalize” do not go together.

“The regulation is a good thing in our business, but to protect consumers,” he said. “But it would be very difficult, that all human beings in the country in a settlement. It might be very wide, and at the end was probably not a lot more teeth. I think that public regulation is the way to go. ”

The great unknown, even if the plan goes through the Fed, there are no guarantees, the federal rules would be as important as that of some States.

“Are standards go down to the governing board highest average, or are they?” Neustadt said. “It’s an open question, but if you as consumers, they are the things you have, of course, concerned.”

Mortgage moved solution

At the pre-mortgage, the Federal Fed a Commission request for the establishment of uniform standards for the mortgage market of the company.

Anthony Costa, for a counter to the idea.

The President and CEO of the Empire State Bank NA, said the problem is that the new standards apply to the entire line. He did not think that fairness, because these were mainly non hedge funds, mortgages, businesses and other institutions would not be regulated, banks, means that the Subprime problem in the first place .

“Less than 15 percent of Subprime loans in the country that have actually been incurred by the banks,” he said. “Now they want new standards, the establishment of requirements over to the bank, in essence, that you are not in any trouble in the first place. We have no problems with you, set new standards for these people. Thus, they come to our standards.

See force banks to more regulation is wind up costs to consumers, he said.

“Including banks in a jump in mortgages and mortgage is difficult to obtain more expensive,” he said, “and nobody is saying that the general public.”