This week, the U.S House of Representatives passed a bill that protects policyholder assets and reaffirms the primacy of state oversight of the insurance market.

With strong Big “I” support, H.R. 1478, the “Policyholder Protection Act” by Reps. Bill Posey (R-Florida) and Brad Sherman (D-California), passed overwhelmingly by a voice vote. The Big “I” has been working closely with the National Association of Insurance Commissioners in actively advocating for this bill since it was first introduced in early 2015.

To achieve its primary goal, the “Policyholder Protection Act” clarifies that Dodd-Frank allows state regulators to wall off and protect insurance company assets designated for policyholders’ claims when an insurance company is part of a larger diversified financial institution. The legislation prevents federal banking regulators from using insurance assets as a “source of strength” and transferring the assets of state-regulated insurance companies and their subsidiaries to an affiliated bank, if state insurance commissioners deem such a transfer harmful to policyholders. This common-sense legislation further reinforces the strong consumer protections the state oversight model contains.

The bill now moves to the U.S. Senate, where Sens. David Vitter (R-Louisiana) and Jon Tester (D-Montana) have introduced S. 798—companion legislation to the House bill. The Big “I” urges the Senate to consider this bill quickly.

Jen McPhillips is Big “I” senior director of federal government affairs.