Insurance Regulatory Bills Advance

Last week, Reps. Alex Mooney (R-West Virginia), Mark Walker (R-North Carolina) and Warren Davidson (R-Ohio) introduced H.R. 4483, the “Federal Insurance Office Abolishment Act of 2017,” to fully repeal the Federal Insurance Office (FIO).

The Big “I” supports H.R. 4483, as well as previously introduced legislation by Reps. Sean Duffy (R-Wisconsin) and Denny Heck (D-Washington): H.R. 3861, the “Federal Insurance Office Reform Act of 2017,” which would significantly restrict the authority of the FIO. The Big “I” believes in a modernized state insurance regulatory system and supports eliminating or significantly restricting the FIO.

Created by the Dodd-Frank Consumer Protection Act of 2010, the FIO is an information-gathering body housed within the Department of Treasury which supports the U.S. Trade Representative in negotiation of certain international insurance agreements, and represents the federal government at the International Association of Insurance Supervisors. FIO also assists in administering the Terrorism Risk Insurance Program and conducts studies and reports on the insurance market.

In addition to introducing the new bill to eliminate the FIO, the U.S. House of Representatives Financial Services Committee has also been working on many other insurance regulatory issues.

A hearing earlier today addressed H.R. 3746, “The Business of Insurance Regulatory Reform Act” by Reps. Duffy and Gwen More (D-Wisconsin). The bill seeks to clarify that the Consumer Financial Protection Bureau’s regulatory authority does not extend to state insurance markets. The Big “I” recently submitted joint testimony supporting this legislation.

The Financial Services Committee is also expected to consider H.R. 3763, “The International Insurance Standards Act” by Reps. Duffy and Heck, soon. The bill would require federal officials to oppose international standards and actions that are inconsistent with state insurance law. The Big “I” supports this legislation.

Meanwhile, Big “I”-supported legislation that would bring greater transparency to international insurance negotiations is also making progress in the U.S. Senate. Language similar to S. 1360, the “International Insurance Capital Standards Accountability Act of 2017” by Sens. Dean Heller (R-Nevada) and Jon Tester (D-Montana), was included in a larger bipartisan banking reform bill that garnered the approval of the Senate Banking Committee earlier this week.

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