As credit unions search for non-cyclical fee income moves into the insurance business, the agenda of state regulators becomes yet another issue managers have to follow.

Insurance is the only major financial services industry that is still regulated primarily by the states. The National Association of Insurance Commissioners, which is the standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories, groups together the state regulators and coordinates activities and policies as the state agencies fight a perennial battle to keep a federal insurance regulator from being established.

The good news is that agency business doesn't attract much regulatory attention, according to Matt Chesky, SVP and director of corporate sales at Insuritas, an East Windsor, Conn.-based firm that helps financial institutions set up their own insurance programs.