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Reports Say McRaith in Line to Head FIO

There are numerous press reports that say Illinois Insurance Director Michael McRaith is in line to be appointed as the first director of the Federal...
March 8, 2011

There are numerous press reports that say Illinois Insurance Director Michael McRaith is in line to be appointed as the first director of the Federal Insurance Office (FIO). So far, these reports are not confirmed. Neither McRaith nor the White House is commenting. McRaith is currently secretary/treasurer of the National Association of Insurance Commissioners (NAIC).

The FIO was created under the Dodd-Frank financial reform law. Large insurers and financial services firms attempted to give FIO a broad mandate that could have positioned it as a precursor of federal insurance regulation; however, the NAIC succeeded in getting language in the law limiting the scope of the FIO's activities and stating that the office will have no regulatory authority. Still, the law required the FIO to conduct a study of insurance regulation - including the "potential benefits" of federal regulation - and make recommendations to Congress. PIA has called on Congress to defund the study because it cannot be unbiased, as it requires the FIO to study itself and recommend whether its own authority should be expanded.

Click here to read Report: McRaith to Head FIO (Reuters 3/3/11)

Click here to read Agent Group Sounds Alarm Over Federal Insurance Study (Insurance Journal 1/19/11)