Committee Acts on International Insurance Bill

This morning, the Big “I” praised the U.S. House of Representatives Financial Services Committee for recommending that the full House consider a bill that addresses transparency in international negotiations related to insurance.

The House Financial Services Committee reported H.R. 5143, the “Transparent Insurance Standards Act of 2016,” for consideration by the full House. Rep. Blaine Luetkemeyer (R-Missouri), Chairman of the Housing and Insurance Subcommittee, is the lead sponsor of H.R. 5143.

Last week, the Big “I” was the only agent broker trade association to sign a joint letter of support for the legislation, which aims to create procedural “checks” for federal officials in international insurance negotiations to ensure the U.S. state-based system of insurance regulation remains strong. The bill would establish a series of requirements federal officials must meet before they may consent to adopting certain international insurance standards, such as ensuring any standard would not require the U.S. to change the way it regulates insurance. In addition, the legislation sets negotiating objectives for U.S. parties to follow, including consideration of any standard’s impact on policyholder protection, as well as the availability and cost of insurance products.

H.R. 5143 further requires consultation with state insurance regulators on the development of international insurance standards and explicitly prohibits the Treasury Department, including the Federal Insurance Office, from expanding its authority through certain international agreements.

The Big “I” supports a modernized state insurance regulatory system and is concerned about federal encroachment into state regulation. The association continues to work with Congress to help ensure that any legislation regarding international insurance policy recognizes that the U.S. state-based system of insurance regulation has protected consumers and promoted competitive insurance markets for more than 150 years.

Jennifer Webb is Big “I” federal government affairs counsel.