Senate Approves Resolution Opposing Federal Regulation of Insurance

Citing sovereignty rights protected by the Tenth Amendment to the United States Constitution, the state Senate on Tuesday approved a resolution stating that insurance regulation should occur exclusively at the state level.

Authored by Sen. Dan Newberry and Rep. Randy McDaniel, House Concurrent Resolution 1047 notes that states have sole authority for the regulation of the business of insurance as provided under the McCarran-Ferguson Act. Newberry said Congress’ recent approval of legislation that would take over the health care industry undermines state authority, creating an unnecessary expansion of federal bureaucracy.

“This is a one-size-fits-all approach that fails to consider the personal needs of consumers across the country,” said Newberry, R-Tulsa. “The Oklahoma Insurance Department has a far better understanding of local market interests and their regulatory requirements. It’s clear we need to communicate these realities to a federal government increasingly unaware of its constitutionally established limitations.”

The resolution states that federal health legislation may undermine the state system of insurance regulation and create an expensive, unwieldy and inaccessible federal bureaucracy. McDaniel noted that the National Conference of State Legislatures and the American Legislative Exchange Council support the continued state regulation of the insurance business.

“Insurance regulation has always been predominately handled at the state level,” said McDaniel, R-Edmond. “For Congress to attempt to insert itself into this realm is a bridge too far and an abridgement of our Tenth Amendment Constitutional rights.”