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Bill Would Rein in Treasury, Fed on Insurance Standards

A bill PIA helped to develop, the Transparent Insurance Standards Act of 2016 would require the U.S. Treasury Department and Federal Reserve to consult with Congress and state insurance regulators represented by the National Association of Insurance Commissioners before approving any international insurance standards...
May 10, 2016

A bill PIA helped to develop, the Transparent Insurance Standards Act of 2016 would require the U.S. Treasury Department and Federal Reserve to consult with Congress and state insurance regulators represented by the National Association of Insurance Commissioners (NAIC) before approving any international insurance standards.

The NAIC, Treasury, and Federal Reserve are currently engaged in international insurance regulatory discussions with the European Union and other regulators, and the bill seeks to address concerns that EU-style standards would be applied to U.S. insurers in a manner that would undermine our system of state-based insurance regulation.

The bill would require the federal regulators to submit analyses to Congress regarding the impacts of proposed international standards on the United States, giving Congress 90 days to approve or reject the proposal; create the analyses and other related reports with feedback from state regulators on market impacts; publish a proposed agreement in the Federal Register and take public comment for 30 days; and ensure that an international capital requirement for U.S. insurers is consistent with domestic capital-standard rules, including one that the Fed is currently working on.

PIA collaborated with House Financial Service Committee’s Housing and Insurance Subcommittee Chairman Blaine Luetkemeyer (R-Mo.)’s office on the development of this legislation and is working to promote its passage. Read PIA’s letter of support.

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