FOR IMMEDIATE RELEASE - APRIL 1, 2008

(Helena, Mont.) -- Duane Grimes, Republican candidate for State Auditor, today decried the latest effort by the Bush Administration to establish federal oversight of the insurance industry. “To have all the states regulated by a central federal bureaucracy is bad for Montana because all our oversight would be west and east-coast driven. Montana consumers would be caught in the middle, ending up losing the most,” said Grimes.

With all due respect to former Montana Governor Marc Racicot, who currently represents the insurance industry, Grimes pointed out that Montana generates $23 million in annual auto insurance revenues, compared to New Jersey at $23 billion. "It’s easy to see," Grimes argues, "who would have influence over Montana regulatory policy, and that can't be good for Montanans."

With a federal regulator, Montanans will lose the benefit of a local, interested Montana neighbor that can help them when they have a major insurance problem or are denied coverage for a frivolous reason. "This type of proposal flies in the face of states rights and the 10th Amendment," said Grimes. "Montana's State Auditor and his staff are the first line of defense for Montana consumers, who depend on their investment in an insurance product all their lives to help them out if they face a crisis. We just can't turn that over to a 1-800 number faceless federal bureaucrat. I agree entirely with Montana Insurance Commissioner John Morrison on this very important issue."

Grimes also points out that premium taxes are paid on that portion of business done in the State of Montana. Federal law will likely say that taxes will have to be paid in the Office where the company is domiciled. "Insurance tax revenue is currently the 5th largest source of revenue for the State, and federal preemption may jeopardize that," Grimes said. "As Auditor, I will look for ways to streamline processes and help the truly good companies that want to do business here. Vigorous, healthy competition creates lower rates and more options for consumers and I believe as Auditor I can find ways to encourage just that."

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Paid for by Grimes for Auditor, Republican – PO Box 4838, Helena, MT 59601