Legislation aimed at protecting the state-based system of insurance regulation from federal oversight by the Consumer Financial Protection Bureau (CFPB) has received support from the National Association of Mutual Insurance Companies (NAMIC).
The Business of Insurance Regulatory Reform Act was introduced in the House by Representative Bryan Steil, Republican of Wisconsin, and in the Senate by Senator Tim Scott, Republican of South Carolina and chair of the Senate Banking Committee. The bill seeks to clarify that state regulators are responsible for overseeing the insurance industry and reinforces jurisdictional boundaries set by Congress in the Dodd-Frank Act.
“State regulators are accountable to consumers and best know their communities, laws, and markets. Congress tried to make it clear in establishing the CFPB that the states, not the bureau, have authority over the insurance industry,” said Jimi Grande, senior vice president of federal and political affairs for NAMIC. “Unfortunately, as is all too common in Washington, the bureau has tried to overstep its limits and expand its powers. The Business of Insurance Regulatory Reform Act will reassert those boundaries and ensure a better system for American consumers. NAMIC applauds Senator Scott and Representative Steil for their continued work to protect our nation’s state-based system of insurance regulation.”
Before the bill was introduced, NAMIC sent a letter supporting Senator Scott and also co-signed an industry-wide letter addressed to both sponsors.
