SF 437

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                             A resolution
  1.2             memorializing Congress to pass federal legislation 
  1.3             requiring persons selling insurance in federally 
  1.4             chartered financial institutions to comply with all 
  1.5             applicable state insurance laws and regulations.  
  1.6      
  1.7      WHEREAS, recent United States Supreme Court interpretation 
  1.8   of federal banking law has preempted state laws and regulations 
  1.9   relating to insurance activities conducted by federally 
  1.10  regulated financial institutions; and 
  1.11     WHEREAS, as a result of these court decisions, the 
  1.12  insurance activities of federally chartered financial 
  1.13  institutions are regulated solely by the Comptroller of the 
  1.14  Currency; and 
  1.15     WHEREAS, insurance professionals are licensed and regulated 
  1.16  by the states in which they reside under the authority of state 
  1.17  insurance commissioners; and 
  1.18     WHEREAS, insurance sales and marketing practices and 
  1.19  insurance consumer protections are regulated at the state level 
  1.20  and overseen by state legislatures; and 
  1.21     WHEREAS, federal preemption of state licensing, education, 
  1.22  and consumer protection laws could result in nonlicensed and 
  1.23  nonregulated individuals offering insurance products through 
  1.24  federally chartered financial institutions; and 
  1.25     WHEREAS, it would be of great value to the citizens of 
  2.1   Minnesota to have the persons who sell insurance, their 
  2.2   education and sales practices, the products they sell, and 
  2.3   insurance consumer protections all regulated in an 
  2.4   understandable and uniform fashion; NOW, THEREFORE, 
  2.5      BE IT RESOLVED by the Legislature of the State of Minnesota 
  2.6   that it urges Congress to immediately enact legislation to 
  2.7   assure that all persons selling insurance including those 
  2.8   providing insurance through federally chartered financial 
  2.9   institutions must comply with state insurance licensing and 
  2.10  educational requirements.  
  2.11     BE IT FURTHER RESOLVED that such legislation would also 
  2.12  require persons selling insurance through a federally chartered 
  2.13  financial institution or its subsidiaries to comply with all 
  2.14  insurance statutes that are designed to protect the insurance 
  2.15  buying public or apply to insurance professionals regulated by 
  2.16  their respective states.  
  2.17     BE IT FURTHER RESOLVED that the Secretary of State of the 
  2.18  State of Minnesota is directed to prepare copies of this 
  2.19  memorial and transmit them to the President and the Secretary of 
  2.20  the United States Senate, the Speaker and the Clerk of the 
  2.21  United States House of Representatives, the chair of the Senate 
  2.22  Committee on Banking, Housing, and Urban Affairs, the chair of 
  2.23  the House Committee on Banking and Financial Services, and 
  2.24  Minnesota's Senators and Representatives in Congress.