You are here:HomeNews CenterInsurance News2013FIO Ordered to Explain Overdue Reports

FIO Ordered to Explain Overdue Reports

The chairman of the U.S. House Subcommittee on Housing and Insurance wants Federal Insurance Office Director Michael McRaith to explain why the agency has failed to provide Congress with three reports as required by law, Best’s News Service reports...
October 17, 2013

The chairman of the U.S. House Subcommittee on Housing and Insurance wants Federal Insurance Office Director Michael McRaith to explain why the agency has failed to provide Congress with three reports as required by law, Best’s News Service reports.

Rep. Randy Neugebauer (R-Texas) said in an Oct. 7 letter to McRaith he found it “puzzling” that the FIO has failed to comply with clear mandates laid out by the Dodd-Frank financial reform act. The 2010 law required the FIO to provide Congress with a series of reports on the state of the U.S. insurance and reinsurance markets.

The FIO was supposed to submit a report on recommendations to modernize the U.S. insurance regulatory system by Jan. 1, 2012. A second report on the breadth and scope of the global reinsurance market was due by Sept. 30, 2012. And a third report on the impact of the Nonadmitted Insurance and Reinsurance Reform Act of 2010 on state regulators’ ability to access reinsurance information was due on Jan. 1, 2013.

Neugebauer asked McRaith to provide a written response detailing the specific reasons why these reports were not provided by the deadline included in the Dodd-Frank Act. In his letter, Neugebauer said as chairman of the subcommittee, he would “be remiss if he did not make every effort to fully understand the reasons why the FIO has failed to submit the required papers, and to undertake every effort to resolve the problem and prevent its recurrence.” In July, Neugebauer told Best’s News Service that the FIO has not done enough to advocate the strengths of the U.S. system of insurance regulation.

Filed under: