On Wednesday, the U.S. House of Representatives Financial Services committee passed H.R. 3746, “The Business of Insurance Regulatory Reform Act,” out of Committee by a vote of 37-18. The legislation was sponsored by Reps. Sean Duffy (R-Wisconsin) and Gwen Moore (D-Wisconsin).

The Big “I” joined a number of organizations in sending a letter to Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-California) expressing support for the legislation.

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act explicitly exempts the business of insurance from the purview of the Consumer Financial Protection Bureau (CFPB), except to the extent “enumerated consumer laws” such as the Fair Credit Reporting Act already address a specific insurance issue. Essentially, Dodd-Frank reiterates that the regulation of insurance was delegated to the states under the McCarran-Ferguson Act.

Unfortunately, the CFPB has demonstrated its willingness to tip toe into insurance regulation and explore the extent of its powers in an open-ended and sometimes confusing manner. H.R. 3746 seeks to clarify that the CFPB’s regulatory authority does not extend to state insurance markets. 

Wyatt Stewart is Big “I” senior director of federal government affairs.