The “Business of Insurance Regulatory Reform Act” clarifies that insurance is regulated at the state level and does not fall under the Consumer Financial Protection Bureau.
This week, Senators Tim Scott (R-South Carolina) and Joe Manchin (D-West Virginia) introduced S. 4325, the Business of Insurance Regulatory Reform Act. Similar legislation was introduced last year, which the Big "I" supported.
In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act exempted the business of insurance from the purview of the Consumer Financial Protection Bureau (CFPB) and reiterated that the regulation of insurance had been delegated to the states. Unfortunately, the CFPB continues to take action on products and services that fall within the exclusive regulatory authority of the states. This Business of Insurance Regulatory Reform Act would fix this problem by clarifying that the business of insurance is regulated at the state level and does not fall under the purview of the CFPB.
Last Congress, the same legislation was also introduced in the U.S. House of Representatives, but there currently is no House bill. However, the Big "I" will continue to advocate for companion legislation and for other legislation that strengthens the state-based system of insurance.
Joseph Cortina is Big "I" director of federal government affairs.