NFCA Supports Optional Federal Charter Concept
NFCA issues its position statement on the OFC.

OAK BROOK, IL, November 24, 2008 – The National Fraternal Congress of America’s (NFCA) Board of Directors has adopted a policy position that “supports the concept of an Optional Federal Charter (OFC), provided it recognizes the unique characteristics of fraternal benefit societies, and accommodates such characteristics in legislation that is put forward in Congress.”

In 2008, Congress introduced legislation creating a national regulator with an OFC, which would establish a parallel federal system of regulation and supervision for insurers and insurance producers (agents and brokers). Under the proposed law, insurers and producers are free to elect federal or state regulation.

“The NFCA’s comments are limited since legislative language has not been finalized and there are some changes regarding fraternal societies that are still being discussed,” said NFCA President and CEO Joseph J. Annotti. “The concept of a parallel system is attractive for many societies, and we will evaluate whether the legislation best serves the interests of our societies and their 10 million certificate holders when a bill is drafted.”

NFCA supports the OFC provided that it recognizes the unique organizational structure of fraternal benefit societies and allows fraternals to choose whether to be regulated at the state or federal level.

The NFCA Board approved this policy position on OFC at its meeting on November 18, 2008. Click here for a copy of the full Statement of Position.

The NFCA will continue to work with insurance industry representatives, Congress, and others to help improve and enhance the OFC. The NFCA further reserves the right to revise its position once a final bill has been introduced.

About the NFCA

The 123-year-old NFCA unites 73 not-for-profit fraternal benefit societies operating in all 50 states, the District of Columbia and Canada. The association represents 10 million fraternalists in 37,000 local chapters, making it one of America’s largest member-volunteer networks. Fraternal benefit societies provide their members with leadership, social, educational, spiritual, patriotic, scholarship, financial and volunteer-service opportunities. Combined, the NFCA’s member-societies maintain more than $343 billion of life insurance-in-force and, in 2007 alone, contributed almost $418 million to charitable and fraternal programs, and volunteered over 95 million hours for community-service projects. These statistics demonstrate the commitment that fraternals make to those in need and exemplify the true meaning of the NFCA signature phrase:  Joining Hands to Touch Lives.

To download a copy of this press release as a WORD document, click here.