Keating Backs Holland On Insurance Issue
UPDATE: Former Oklahoma Governor Frank Keating, now head of the American Council of Life Insurers in Washington, has written a letter supporting Insurance Commissioner Kim Holland's position on insurance company investments. Keating's letter puts him in opposition to several Republicans in the State House.The McCarville Report Online obtained a copy of Keating's letter, which reads in part:
"On behalf of the American Council of Life Insurers, I would like to thank you for your past and continuing efforts in working to adopt legislation that is based on model laws. I applaud your latest efforts to update Oklahoma's investment laws to conform to the investments of Insurers Model Act adopted by the National Association of Insurance Commissioners.
"ACLI expresses its support for the changes to Oklahoma law that would regulate the types and amount of investment of insurer assets in construction loans. The limits set forth in H 1958 reflect exactly the limits prescribed in the investments of Insurers Model Act. This Model Act was adopted in 1996 by the National Association of Insurance Commissioners and was the product of four years of concerted effort to create a modern and comprehensive investment law for all insurers. The effort included all segments of the insurance industry, state and federal regulators, Wall Street, investment bankers and consumers.
"The Model Act created a set of realistic limits that reflect the level of investments currently being held by a majority of our nation's insurers. After much study done by regulators and such interested parties as the Mortgage Bankers Association and the Investment Company Institute and ACLI the limit set forth in H 1958 was selected as representative of the amount of investment risk insurers should assume to balance their interests in assuring stable capital bgrowth while protecting their assets to pay promised benefits. In fact, our present research (current as of December 31, 2005) shows that our companies investments in such construction and land development loans amounted to 2.6 billion dollars which represents 0.1% of our companies general account assets." The letter puts the former Republican governor at odds with GOP Rep. Greg Piatt of Ardmore, who pushed for an investment percentage 10 times that which Holland recommended.
(Originally posted March 6th) ~ Insurance Commissioner Kim Holland warned the House Economic Development and Financial Services Committee that an amendment proposed by Republican Rep. Greg Piatt, R-Ardmore, and apparently supported by the House GOP leadership, opens "the door for companies that are marginal to come into Oklahoma."
The amendment, supported by the Gene Phillips family insurance companies lobbyist Bobby Stem, sets a 20 percent cap on how much money insurance companies can invest in real estate construction loans. Holland wants the limit set at 2 percent. She said real estate construction loans are "speculative and risky," and that only three insurance companies, all tied to the Phillips family, want the change.
The committee's action, and Holland's comments, drew more than usual attention since the Republican that Holland defeated, former Rep. Bill Case, is now a member of Stem's lobbying firm. Case had considerable support from Enid attorney Stephen Jones, who has been linked to the Texas group "Just The Facts America" that tried to defeat Democrat Holland last year. Jones is among the state's most generous political donors, giving most often to Republicans.
Another reason for the attention is that former Insurance Commissioner Carroll Fisher is accused of accepting money and gifts from Phillips, his family and business associates; Fisher awaits trial in a bribery case that's an extension of the criminal investigation that drove him from office.
"On behalf of the American Council of Life Insurers, I would like to thank you for your past and continuing efforts in working to adopt legislation that is based on model laws. I applaud your latest efforts to update Oklahoma's investment laws to conform to the investments of Insurers Model Act adopted by the National Association of Insurance Commissioners.
"ACLI expresses its support for the changes to Oklahoma law that would regulate the types and amount of investment of insurer assets in construction loans. The limits set forth in H 1958 reflect exactly the limits prescribed in the investments of Insurers Model Act. This Model Act was adopted in 1996 by the National Association of Insurance Commissioners and was the product of four years of concerted effort to create a modern and comprehensive investment law for all insurers. The effort included all segments of the insurance industry, state and federal regulators, Wall Street, investment bankers and consumers.
"The Model Act created a set of realistic limits that reflect the level of investments currently being held by a majority of our nation's insurers. After much study done by regulators and such interested parties as the Mortgage Bankers Association and the Investment Company Institute and ACLI the limit set forth in H 1958 was selected as representative of the amount of investment risk insurers should assume to balance their interests in assuring stable capital bgrowth while protecting their assets to pay promised benefits. In fact, our present research (current as of December 31, 2005) shows that our companies investments in such construction and land development loans amounted to 2.6 billion dollars which represents 0.1% of our companies general account assets." The letter puts the former Republican governor at odds with GOP Rep. Greg Piatt of Ardmore, who pushed for an investment percentage 10 times that which Holland recommended.
(Originally posted March 6th) ~ Insurance Commissioner Kim Holland warned the House Economic Development and Financial Services Committee that an amendment proposed by Republican Rep. Greg Piatt, R-Ardmore, and apparently supported by the House GOP leadership, opens "the door for companies that are marginal to come into Oklahoma."
The amendment, supported by the Gene Phillips family insurance companies lobbyist Bobby Stem, sets a 20 percent cap on how much money insurance companies can invest in real estate construction loans. Holland wants the limit set at 2 percent. She said real estate construction loans are "speculative and risky," and that only three insurance companies, all tied to the Phillips family, want the change.
The committee's action, and Holland's comments, drew more than usual attention since the Republican that Holland defeated, former Rep. Bill Case, is now a member of Stem's lobbying firm. Case had considerable support from Enid attorney Stephen Jones, who has been linked to the Texas group "Just The Facts America" that tried to defeat Democrat Holland last year. Jones is among the state's most generous political donors, giving most often to Republicans.
Another reason for the attention is that former Insurance Commissioner Carroll Fisher is accused of accepting money and gifts from Phillips, his family and business associates; Fisher awaits trial in a bribery case that's an extension of the criminal investigation that drove him from office.
Labels: Bill Case, Bobby Stem, Carroll Fisher, Frank Keating, Gene Phillips, Kim Holland, Stephen Jones
posted by Mike McCarville @ 4:41 PM
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