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House Bill Supports State Insurance Regulation

"Federal creep" on oversight of insurance and financial services is a key concern in legislation written by the Republican majority and approved on June 17 by the U.S. House Appropriations subcommittee...
June 25, 2015

"Federal creep" on oversight of insurance and financial services is a key concern in legislation written by the Republican majority and approved on June 17 by the U.S. House Appropriations subcommittee. It would prevent the U.S. Department of Labor from proceeding in crafting a rule establishing an updated fiduciary standard, remove the Office of Financial Research's (OFR) funding from the Treasury Department and subject it to congressional appropriation.

The report that accompanied the bill explains that House Republicans want to control OFR funding because it provides the data used by the Treasury and the Federal Insurance Office (FIO) to impose oversight on insurance. The committee notes that the state-based system of insurance regulation has served the United States well for more than 150 years and that the authority to regulate insurance lies with the individual states. The committee is "concerned" about the ongoing negotiations to create international capital standards "and believes the U.S. agencies party to those negotiations must appropriately fulfill their duties to advocate for the U.S. insurance market and state-based regulatory regime."