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PIA Supports Collins Fix Amendment Limited to Insurance

PIA supports the insurance-related fix to the Dodd-Frank Act contained in the Insurance Capital Standards Clarification Act (S.2270), known as the Collins amendment fix...
September 25, 2014

PIA supports the insurance-related fix to the Dodd-Frank Act contained in the Insurance Capital Standards Clarification Act (S.2270), known as the Collins amendment fix. The bill would clarify that the Federal Reserve should regulate insurance companies differently than banks. S.2270 would modify a provision of the 2010 Dodd-Frank Act written by Senator Susan Collins (R-ME), who testified at an April hearing that the 2010 amendment on capital standards was never meant to apply similarly to insurers and banks.

The Senate passed S. 2270 in July by unanimous consent, with wide bipartisan agreement. Before departing last week for recess until after the November mid-term elections, the House passed H.R. 5461, a package of bills that includes the Collins amendment fix, with the same language as S. 2270. Unfortunately, instead of passing a clean Collins amendment fix, the House has packaged the amendment with three other pieces of legislation that include broader changes to Dodd-Frank.

These amendments would change rules governing mortgages, derivatives end-users and collateralized loan obligations, and will likely face hurdles passing the Senate. As a result, the Collins amendment fix will not move forward without further negotiation between the House and Senate, hopefully when Congress returns following the election.

What It Means to Agents: PIA supports the Collins amendment fix as a common-sense solution, and will continue to work with Congress to urge its enactment during the lame-duck session.

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