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PIA Joins to Oppose Inclusion of Insurance in Consumer Agency

PIA has joined a long list of insurance industry associations asking Congress that the industry be spared entirely from regulation under the newly proposed Consumer...
July 21, 2009

PIA has joined a long list of insurance industry associations asking Congress that the industry be spared entirely from regulation under the newly proposed Consumer Financial Protection Agency, an Obama administration proposal that's recently become a bill in the House. Although the proposed language keeps insurance largely out of the agency's jurisdiction, it does claim authority over mortgage, title and credit insurance. The agency would impose penalties in an effort to protect consumers from potentially harmful financial products. The agency would assume many consumer protection powers now held by other regulators.

The letter was signed by 13 groups that haven't always agreed on regulatory issues, including PIA, the American Council for Life Insurers (ACLI), American Insurance Association (AIA), National Association of Insurance and Financial Advisors (NAIFA), National Association of Mutual Insurance Companies (NAMIC) and the Property Casualty Insurers Association of America (PCI).

The White House proposal for a consumer financial protection agency has also drawn opposition from the Federal Reserve. In testimony last week before a subcommittee of the House Financial Services Committee, Federal Reserve Governor Elizabeth A. Duke argued that the Fed should keep its consumer regulatory powers.

Keep Insurers From U.S. Consumer Unit Purview (National Underwriter 7/16/09)