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NAIC: U.S. Ignored State Regulators in MetLife Case

The National Association of Insurance Commissioners has filed a court brief stating that the Financial Stability Oversight Council appeared to ignore or discount the state regulatory system and disregarded their work when it designated of MetLife Inc. as “too big to fail.”...
August 31, 2016

The National Association of Insurance Commissioners (NAIC) has filed a court brief stating that the Financial Stability Oversight Council (FSOC) appeared to ignore or discount the state regulatory system and disregarded their work when it designated of MetLife Inc. (MET.N) as “too big to fail.”

The government is seeking to overturn a March decision by U.S. District Judge Rosemary Collyer to rescind the systemically important financial institution designation. In its brief, the NAIC stated that the FSOC even disregarded the opinion of its own insurance expert Roy Woodall, who voted against the MetLife designation, “in favor of speculation, assumptions about consumer and regulatory responses to distress that have no basis in fact or history, and a flawed analysis of the insurance business and its regulation.”

“MetLife is a highly regulated company and the existing regulation has served the company and its policyholders well,” said the NAIC. The American Council of Life Insurers, U.S. Chamber of Commerce, the Washington Legal Foundation and the Cato Institute, a conservative think tank, along with a panel of eight academic experts, also filed briefs supporting MetLife. A federal appeals court has scheduled argument for Oct. 24 in MetLife’s bid to stay off the U.S. government's too-big-to-fail list.