Last week, the U.S. House of Representatives voted to allow the Financial Stability Oversight Council (FSOC) independent insurance expert to remain in office until a successor is appointed. H.R. 3110, by Reps. Randy Hultgren (R-Illinois) and Maxine Waters (D-California), passed by a vote of 407-1.

Following House action, the U.S. Senate Committee on Banking, Housing and Urban Affairs moved a companion measure, S. 1463 by Sens. Mike Crapo (R-Idaho) and Sherrod Brown (D-Ohio), out of committee. The full Senate is expected to vote on the measure soon, but at press time, the legislation has not yet seen a vote.  

Roy Woodall, a former state insurance commissioner from Kentucky, currently holds the independent insurance expert position. The position is important because FSOC has the power to designate insurance companies as systemically important non-financial institutions, making them subject to enhanced federal regulation. Thus far, FSOC has voted to do so on three occasions for AIG, Prudential and MetLife. In each vote, Woodall was the only dissenting voice on the committee.

The Big “I” supports the legislation, which has broad support from the insurance industry and state regulators. Without it, Woodall’s term will expire on Sept. 30, and the independent insurance expert position will remain vacant until President Trump appoints a new individual.

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