LANSING – State Representative Barb Byrum (D-Onondaga) today introduced a plan that opposes any federal attempt to regulate Michigan's insurance industry.
"Congress is currently talking about federalizing the insurance system," Byrum said. "The federal government's failure to regulate banks and investment firms at the national level has proved to be a costly disaster. By instituting federal regulation on insurance, it will only create an inaccessible and ineffective bureaucracy that will put millions of Michigan residents at risk."
Byrum's plan would memorialize the U.S. Congress to oppose federal insurance regulatory measures, a move that would bring critical dollars to the state. Many state governments derive general revenue dollars from the regulation of the business of insurance, with Michigan bringing in over $223 million in premium taxes generated in 2007-08. Federal insurance regulation initiatives would eventually draw premium tax revenues from the states, hurting Michigan's economy.
"Traditionally, insurance regulation is handled at the state level," Byrum said. "State-based insurance regulation allows Legislators, Insurance Commissioners and members of the insurance industry to provide the best insurance coverage to Michigan residents, while maintaining effective oversight and consumer protections. I urge my colleagues in the Legislature to quickly move on this plan that helps protect our residents and will keep valuable dollars in our state economy."