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NALC
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NEWS RELEASE:NALC Extends Membership to Banks and other Financial Services OrganizationsMay 26, 2000, Chicago, Illinois – The Board of Directors of the National Alliance of Life Companies (NALC) voted unanimously today to extend membership in the organization to banks and other financial services organizations. The vote changed the by-laws of this association of Life and Health Insurance companies to include this new category of membership. The new category includes state or federally chartered banks, finance companies, thrifts, savings and loan companies, mortgage banks, community banks, bank or financial services holding companies, credit unions, and other financial institutions in good standing and qualified to do business in any state or territory of the United States, including the District of Columbia. NALC intends to be the leading organization to represent the mutual regulatory and legislative agendas of both life insurance companies and financial services organization. “The passage last year of the Financial Services Modernization Act, also known as the Gramm-Leach-Bliley bill, creates the need for a strategic alliance between banks and life insurance companies,” said NALC Executive Director Scott Cipinko. “The law opens new doors for both kinds of companies, and creates new regulatory issues, concerns and potential challenges. We want to be the first to facilitate a mutually beneficial partnership between banks and life companies.” The purpose of the Financial Services Modernization Act is to: enhance competition in the financial services industry, in order to foster innovation and efficiency; ensure the continued safety and soundness of depository institutions; provide necessary and appropriate protections for investors and ensure fair and honest markets in the delivery of financial services; avoid duplicative, potentially conflicting, and overly burdensome regulatory requirements through the creation of a regulatory framework based upon enhanced efficiency; and eventually eliminate the legal barriers preventing affiliation among depository institutions, securities firms, insurance companies, and other financial service providers. “This act removes any remaining barriers prohibiting financial services institutions from selling insurance or teaming with insurance carriers for the same purpose,” added Cipinko. “For this reason, it is incumbent upon the two industries to combine their efforts to ensure that emerging regulatory provisions do not thwart the goals of the act. We need to be proactive together to work toward the goals set forth in the bill.” NALC Board President Judith Wright said, “This association is dedicated to reaching out to the financial services industry and including banks in our membership. Our expertise in insurance regulation and marketing pooled with their expertise in banking issues will make for a winning combination, and a voice that cannot be ignored by the regulators.” Financial service companies and their representatives will be afforded the same benefits and obligations of membership that apply to life and health insurance companies, including Board and committee membership, and election as officers of the organization. The NALC has anticipated this action for some time, having already created a committee to deal with related issues, and presenting seminars on this topic at its recent annual meeting and conference. * * * * * * * The National Alliance of Life Companies (NALC) is a national trade organization with more than 250 life insurance company members. The NALC promotes fair and effective regulation of the life and health insurance industry, while allowing for a reasonable return to policyholders and shareholders. To arrange for an interview regarding any of these issues or with anyone quoted in the releases, contact Dawn Bergsma, Meeting Planner/Office Manager: 941-379-6100.
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Copyright © 2003-2008, National Alliance
of Life Companies
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The NALC held its 2008
Spring Conference April 2-5, at the Grand Hotel Marriott, Point
Clear, Alabama.