Wednesday, June 15, 2005 | 9:51 a.m.
Frustrated by the sluggishness and inconsistencies of state regulation, 135 insurance companies, agencies, banks and financial services trade groups urged Congress on Tuesday to establish a federal regulator for the insurance industry.
In a letter to Sen. Richard C. Shelby, the chairman of the Senate Banking Committee, and Sen. Paul S. Sarbanes, its ranking Democrat, the insurers and bankers complained of the burden of having to comply with regulators in 50 states, saying it was a very costly system that "provides no advantage to the consumer."
The shortcomings of state regulation have been underscored in the last year by investigations that have revealed improper practices by some of the largest insurers and brokers.
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