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WASHINGTON (May 6, 2010) The National Association of Mutual Insurance Companies (NAMIC) today welcomed news of an agreement between Sens. Christopher Dodd, D-Conn., and Richard Shelby, R-Ala., that will remove a proposed $50 billion resolution fund from Wall St. reform legislation and allow the bill to move forward.

“Given the potential impact of this far-reaching legislation, we appreciate Sens. Dodd and Shelby working tirelessly to improve the bill, even as the amendment process continues on the Senate floor,” said Charles M. Chamness, NAMIC president and CEO. “By removing this fund, the Senate has taken another important step toward ensuring that mutual and reciprocal insurance companies and their policyholders should not be held responsible for saving large and systemically significant financial firms from their own risky behavior.”

Since the financial crisis began NAMIC has urged that any reform legislation target those firms who played a role in the economic collapse and not inadvertently harm mutual and reciprocal property/casualty insurance companies with burdensome new government regulations.

“We have expressed our concerns throughout the legislative process, noting that property/casualty insurers pose no systemic risk and should not be held accountable for the failures the systemically significant firms,” said Chamness. “While the legislation is by no means final, we feel that the agreement between Sens. Dodd and Shelby is a positive development that will help ensure that NAMIC members, and their policyholders, will not be asked to pay for the failures on Wall Street.” NAMIC will continue to monitor the Wall Street reform legislation as it is voted on by the Senate
For further information, contact
Matt Brady
Director of Media Relations
(202) 580-6742 Tel
(202) 379-6490 (mobile)
mbrady@namic.org

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