financialservices.house.gov

Cmte Financial Services (R)
Contact:


Reviewing State-Based Insurance Regulation

Washington, Mar 7 -

The Housing and Insurance Subcommittee met today to review H.R. 5059, the State Insurance Regulation Preservation Act. Introduced on February 15, 2018 by Representatives Keith Rothfus and Joyce Beatty, the bill would amend the Home Owners’ Loan Act with respect to the registration and supervision of insurance savings and loan holding companies (SLHC).

“This hearing was held to review the proper balance of the Federal Reserve’s supervision of Savings and Loan Holding Companies (SLHC’s) primarily engaged in the business of insurance,” said Subcommittee Chair Sean Duffy (R-WI). “Under Title 1 of the Dodd-Frank Act, the Fed was given supervisory and rule-making authority over SLHC’s, in addition to its new authority to establish enhanced minimum leverage capital and risk-based capital requirements for insurers under that structure. It is important that we remember that the United States system of state-based insurance regulation has worked well for over 150 years.”

Topline Quotes from Witnesses

“We believe this legislation strikes an appropriate balance between the Federal Reserve’s statutory duty to ensure the safety and soundness of an insurance SLHC while leveraging the extensive work already performed by the state insurance supervisors as holding company supervisors. In addition, H.R. 5059 continues to preserve the primacy of the States as the regulators of insurance under the McCarran-Ferguson Act.” – Michael Mahaffey, Chief Strategist and Risk Officer, Nationwide Mutual Insurance Company

“H.R. 5059 embodies the Congressional intent of Dodd‐Frank and the growing consensus that Federal Reserve Board regulation of insurance SLHCs should be better coordinated with, and governed by, proven effective state‐based insurance regulation.” – Kurt Bock, Chief Executive, COUNTRY Financial, on behalf of the Property Casualty Insurers Association of America