Source: United States House of Representatives – Representative Bryan Steil (Wisconsin-1)
Washington, D.C. – Congressman Bryan Steil (WI-01) today introduced the Business of Insurance Regulatory Reform Act. This legislation will clarify that the Consumer Financial Protection Bureau (CFPB) cannot exercise its authority over entities that are engaged in the business of insurance, whether or not those entities offer products or services that are subject to other consumer financial protection laws. Instead, state insurance regulators must continue to regulate the insurance industry.
“State insurance regulators have a strong track record of effective regulation of the insurance industry,” said Congressman Steil. “When Congress created the CFPB, it excluded the insurance business from the Bureau’s mandate. Unfortunately, the CFPB has tried to expand its authority without any accountability. This legislation makes it clear to the CFPB that it has no authority to regulate the business of insurance. It’s time for the Bureau to start operating within the boundaries set by Congress, and this bill is a step forward in making sure it does.”
Companion legislation has been introduced in the Senate by U.S. Senate Banking, Housing, and Urban Affairs Ranking Member Tim Scott (R-SC) and Senator Joe Manchin (D-WV).
“With 23 years of experience in the insurance industry, I’ve seen firsthand the value of our state-based insurance system. As the CFPB continues to overstep its authority and operate beyond its jurisdiction, this bill will protect our unique system of state-based insurance regulation that has resulted in highly competitive, fair markets across the country from unchecked bureaucrats in Washington,” said Ranking Member Scott.
“I am proud to reintroduce the Business of Insurance Regulatory Reform Act, which reaffirms the 150-year precedent of regulating insurance at the state level and keeps costs down for insurance holders,” said Senator Manchin. “This commonsense legislation would better codify the Consumer Financial Protection Bureau (CFPB)’s current boundaries and hold it to the same standard as the Federal Insurance Office, preventing CFPB from regulating the business of insurance and reminding the agency that this authority resides with states. I encourage my colleagues on both sides of the aisle to support this bipartisan legislation.”
NOTE: This legislation was endorsed by the Wisconsin Credit Union League, American Council of Life Insurers, American Land Title Association, American Property Casualty Insurance Association, Consumer Credit Industry Association, Council of Insurance Agents and Brokers, Independent Insurance Agents & Brokers of America, National Association of Insurance and Financial Advisors, National Association of Mutual Insurance Companies, National Association of Professional Insurance Agents, The Surety & Fidelity Association of America, and the United States Chamber of Commerce. Among many other organizations.
CLICK HERE to read the bill.