Optional Federal Charter

State Farm advocates for rate freedom and similar competitive pricing reforms. We support the elimination of price controls, believing that competitive market forces – good old fashioned competition – should determine the prices and terms of products the insurance industry offers the public.

State Farm and others in the insurance industry have been working for decades with legislators to reform our nation’s state-based insurance regulatory system. State Farm, in cooperation with others in the insurance industry, works to address insurance marketplace problems in states where the regulatory environment negatively impacts insurance products, prices and services.

Consistent with these long-standing efforts, State Farm supports an Optional Federal Charter because it is an efficient means of achieving much needed modernization of our insurance regulatory system. An OFC – by definition – would be optional: It would not dismantle the state-based insurance regulatory system but would afford producers the option of being regulated under a federal system.