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House Panel Passes Policyholder Protection Act, PIA Priority

The House Financial Services Committee, on November 3, passed the Policyholder Protection Act...
November 10, 2015

The House Financial Services Committee (FSC), on November 3, passed the Policyholder Protection Act (H.R. 1478). Throughout the year, PIA has been advocating for the legislation, which was introduced by Senator David Vitter (R-LA) and Congressman Bill Posey (R-FL). This measure provides protection for the state-based insurance system by prohibiting federal regulators from using assets designated to pay out insurance claims to “prop up” an affiliated bank, and it allows for state regulators to rehabilitate a troubled bank, rather than moving directly to liquidation.

“PIA is pleased that the House Financial Services Committee has approved H.R. 1478,” said PIA National Vice President of Government Relations Jon Gentile. “This legislation greatly improves the ability of state insurance regulators to protect policyholders by ensuring that insurance companies structured under larger financial firms are not held financially responsible for an affiliated bank’s failure or financial crisis. We urge the full House to pass it.”

What It Means to Agents: Approval by the House FSC and by the Senate Banking Committee this summer puts the legislation one step closer to becoming law. PIA will continue to advocate for this bill’s passage this Congress.

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