Oregon Public Broadcasting

As the Senate starts work on an overhaul of financial regulations, the insurance industry has noticed an amendment from Oregon Senator Jeff Merkley. April Baer reports.

Most insurance regulation happens at the state level.

The financial overhaul bill would create a new office of National Insurance. But Merkley’s amendment would limit its powers, ensuring state regulators would keep doing their jobs.

State Insurance Commissioners, like Washington State’s Mike Kreidler, say they think it’s a great structure, and that it lays clear rules for foreign multi-nationals wanting to jump in the U.S. market.

Mike Kreidler “I think it’s going to make it easier for the United States as a country to be represented on the international level than the way it’s operated in the past.”

Over the last few weeks, the finance bill has taken on a wider and more populist flavor – with amendments like Merkley’s. Industry groups are fighting it for a range of reasons.

Even Kreidler concedes the multi-national insurance trade was not responsible for the financial meltdown. But he says that doesn’t make the amendment a bad idea.

Senate leaders want the bill put to bed by next week.