Reps. Melissa Bean, D-Ill., and Ed Royce, R-Calif., introduced legislation yesterday that would establish a “parallel national system of regulation and supervision” for the insurance industry, including financial guarantors in the muni market.

Citing the meltdown of insurance giant American International Group, as well as the broader financial crisis, Bean and Royce, both members of the House Financial Services Committee, said that their legislation would establish a robust federal regulator for insurance to act as an alternative to the “antiquated, non-uniform system of state insurance regulators.”

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