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PIA Hails Passage of Policyholder Protection Act

PIA has hailed passage of the Policyholder Protection Act...
December 23, 2015

PIA has hailed passage of the Policyholder Protection Act. The measure was included in the omnibus appropriations agreement that was passed 316-113 in the House and 65-33 in the Senate on December 18.

“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,” said PIA National Vice President of Government Relations Jon Gentile. “It is designed to ensure that the money set aside to pay insurance claims is not appropriated by the federal government to bail out ‘too big to fail’ financial institutions.”

The legislation also protects policyholders from actions taken by the Federal Deposit Insurance Corporation (FDIC) that would liquidate insurers, another function of state insurance regulators. It limits the ability of the FDIC to seize insurance company assets intended for policyholder payments when an affiliated financial entity is subject to liquidation.

 

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