To: Ncoil Legislators

DATE: SEPTEMBER 18, 2008

TO: NCOIL LEGISLATORS

FROM: MIKE HUMPHREYS STATE-FEDERAL RELATIONS DIRECTOR

RE: H.R. 5840 PULLED FROM HOUSE SUSPENSION CALENDAR

Last night House Speaker Nancy Pelosi (D-CA) pulled H.R. 5840, the Insurance Information Act, off the House suspension calendar. It was scheduled for a limited debate and vote.

Attached are: • a 9/17 National Underwriter article “House Pulls OII Bill Off Floor, Okays NARAB” • a 9/17 COFIR press release denouncing any link between AIG and the need for a federal regulator • a 9/16 NCSL letter to Speaker Pelosi and Minority Leader John Boehner (R-OH) saying that NCSL does not “fully support” H.R. 5840

NCOIL will send a letter to Speaker Pelosi this week from NCOIL officers thanking her for her action and recognizing NCOIL concerns with the proposal. The letter will also refute the claims of certain H.R. 5840 proponents who say that the recent federal bailout of AIG proves the need for an Office of Insurance Information (OII). To the contrary, NCOIL will note, AIG’s financial troubles were unrelated to its insurance operations—which are healthy—and are actually the result of its risky financial services behavior.

NCOIL should not view this as a defeat of H.R. 5840 and should continue efforts to contact House Members and state officials to express our concerns with the proposal.

The House will not consider H.R. 5840 today, but its future is unclear. It may reappear next week. Supporters of the bill suggest that it will still come before the House prior to adjournment later this month. NCOIL staff is working with Congressional staff to find out more information.

No immediate reason for pulling the bill was announced, but it has been reported that Congresswoman Jackie Speier (D-CA) had raised concerns to Speaker Pelosi regarding how H.R. 5840 could effect California rate regulation. Congresswoman Speier had raised similar concerns during a July 9, Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises markup of H.R. 5840.

As we have reported, suspension of the rules means points of order and other procedural requirements for consideration are waived, and amendments are not allowed.

Please feel free to contact me by reply e-mail or at 202-220-3014 should you have any questions.