Susan Voss, President of the National Association of Insurance Commissioners (NAIC) has said that she does not see a shift of insurance regulatory oversight from the state level to the federal with the newly created Federal Insurance Office (FIO) at the U.S. Treasury Department. Federal regulators lack experience and are interested in learning more about insurance. “States still have primary financial oversight over insurers,” Voss said.

Some state insurance regulators are looking into allowing tax-free exchanges of corporate-owned life insurance policies (COLI). NAIC staff began studying the issue when some employers found themselves stuck with troublesome COLI policies. However, representatives from the American Council of Life Insurers (ACLI), Association for Advanced Life Underwriting (AALU), National Association of Insurance & Financial Advisors (NAIFA) joined to write a comment letter opposing the revision of state insurable interest laws.