FEDERAL INSURANCE ACT OF 1977

HEARINGS

BEFORE THE

COMMITTEE ON

BANKING, HOUSING, AND URBAN AFFAIRS
UNITED STATES SENATE

99-073 O

NINETY-FIFTH CONGRESS

FIRST SESSION

ON

S. 1710

TO AUTHORIZE THE ISSUANCE OF CHARTERS FOR CARRY-
ING ON THE BUSINESS OF INSURANCE, TO PROVIDE FOR THE
GUARANTEE OF THE INSURANCE OBLIGATIONS, AND FOR

OTHER PURPOSES

SEPTEMBER 12, 13, AND 14, 1977

Printed for the use of the Committee on Banking, Housing,
and Urban Affairs

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1977

COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

WILLIAM PROXMIRE, Wisconsin, Chairman

JOHN SPARKMAN, Alabama
HARRISON A. WILLIAMS, JR., New Jersey
THOMAS J. MCINTYRE, New Hampshire
ALAN CRANSTON, California
ADLAI E. STEVENSON, Illinois
ROBERT MORGAN, North Carolina
DONALD W. RIEGLE, JR., Michigan
PAUL S. SARBANES, Maryland

EDWARD W. BROOKE, Massachusetts
JOHN TOWER, Texas
JAKE GARN, Utah

H. JOHN HEINZ III, Pennsylvania
RICHARD G. LUGAR, Indiana
HARRISON SCHMITT, New Mexico

KENNETH A. MCLEAN, Staff Director
JEREMIAH S. BUCKLEY, Minority Staff Director
ELINOR B. BACHRACH, Professional Staff Member

S. 1710...

CONTENTS

Section-by-section analysis.

LIST OF WITNESSES

MONDAY, SEPTEMBER 12

Harold M. Williams, Chairman, Securities and Exchange Commission__
John Robert Hunter, Jr., Deputy Federal Insurance Administrator,
Department of Housing and Urban Development, accompanied by
Howard Clark, former insurance commissioner of South Carolina__
Joe Sims, Deputy Assistant Attorney General, Antitrust Division, Depart-
ment of Justice, accompanied by Guy Maseritz, Chief, Legislative Unit,
Antitrust Division...

TUESDAY, SEPTEMBER 13

Wesley J. Kinder, insurance commissioner, State of California, representing the National Association of Insurance Commissioners

Richard L. Mathias, director of insurance, State of Illinois, accompanied by Michael Hasten, chief counsel___

James M. Stone, insurance_commissioner, Commonwealth of Massachusetts, accompanied by Keith R. Rodney, Deputy Commissioner of Insurance..

T. Lawrence Jones, president, American Insurance Association, accom-
panied by Walter D. Vinyard, Jr., counsel..

Andre Maisonpierre, on behalf of the Alliance of American Insurers.
Arthur C. Mertz, president, National Association of Independent Insurers_

Wednesday, SEPTEMBER 14

Robert L. Dillard, Jr., executive vice president, Southland Life Insurance
Co. on behalf of the American Council of Life Insurance and the Health
Insurance Association of America__

Marvin L. Pearce, president, Professional Insurance Agents, accompanied by Edward O'Rourke, State Legislation and Regulation Committee, PIA...

Edward J. Kremer, chairman, Federal Affairs Committee, Independent Insurance Agents of America, accompanied by Jeffery Yates, associate general counsel, IIAA...

H. James Douds, general counsel, National Association of Life Underwriters..

Jean C. Hiestand, vice president-counsel, on behalf of State Farm Insurance Cos. of Bloomington, Ill.---

Dennis Reinmuth, director of special projects, League Insurance Group__

ADDITIONAL Statements and Data

American Insurance Association, supplement to the testimony of T.
Lawrence Jones, president...

Congressional Record, reprint of remarks of Senator Brooke on introduction
of S. 1710_.
Department of Housing and Urban Development, proposed study on the
social policy questions of insurance regulation
Economic Perspective, publication of the Federal Reserve Board, excerpt
from article titled "Incidental' Activities of Bank Holding Companies".