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Proposed Consumer Financial Protection Agency Has Limited Mention of Insurance

A bill (H.R. 1705/S. 566) that would form a Consumer Financial Protection Agency, proposed by the Obama Administration, includes only limited specific mention of the...
July 1, 2009

A bill (H.R. 1705/S. 566) that would form a Consumer Financial Protection Agency, proposed by the Obama Administration, includes only limited specific mention of the insurance industry. The new federal agency would set standards and enforce laws protecting consumers from being victimized by unfair financial activity. The bill's language says "the Agency shall not define engaging in the business of insurance as a financial activity (other than with respect to credit insurance, mortgage insurance, or title insurance …)." Other aspects of insurance, including annuities, weren't explicitly mentioned in the announcement.

The administration has described what this agency will establish as a "floor" for financial-sector oversight, allowing the states leeway for creating even more stringent regulations.

What It Means to Agents:  This is another indication that the Obama Administration is declining to embrace federal regulation of insurance.

To read more about the bills, visit the The Library of Congress' webpage and conduct a search on the bill numbers (H.R. 1705, S. 566).