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fiodxex12ectx11x12mxecxdaelmcraxetxdMichaelMcRaithormerdirectorotheIllinoisDepartmentoInsurancebecamethex2rstdirectorotheFIOinJune.InAugustNAMICspoketohimaboutthepotentialimpactonNAMICmembersresultingromthedowngradeotheUnitedStatessovereigncreditratingbyStandardPoorx19s.Inthediscussionweindicatedtohimthatwedidnotbelieveourmembersweremakingsignix2cantshitsinx2xed-incomeinvestmentportoliosasaresultothedowngradeandthatthetopconcernswereoverthebroadereconomyinterestratetrendsandswingsintheequitymarkets.NAMICPresidentandCEOChuckChamnessmetwithDirectorMcRaithonNovember17inWashingtonD.C.todiscussthesubstanceoourprioritytopicsonregulatorymodernizationandimprovement.WetooktheopportunitytostatethatNAMICsupportsareormedsystemostate-basedinsuranceregulation.Wealsoidentix2edseveralareasoconcernwiththestatesystemx13namelyrateregulationmarketconductandproducerandagentlicensingissues.NAMICurgedDirectorMcRaithtoengagetheinternationalcommunityandensurethatateverynegotiatingtablesomeonewhounderstandsthebusinessoinsuranceandtheU.S.systeminparticularispresent.WealsoobservedthatDirectorMcRaithcouldplayavaluableroleasawatchdogootherederalagencieswhentheyunintentionallyx13ornotsounintentionallyx13oversteptheirauthoritytothedetrimentoourindustryandinsurancepolicyholders.OnNovember21NAMICx19sederalax1airsstax1visitedTreasuryoryetanothermeetingwithDirectorMcRaiththistimeasamemberotheCoalitionOrganizedortheFutureoInsuranceRegulation.COFIRx19smessagereiteratedandreinorcedwhatNAMIChadsaidbeoreurtherestablishingourrelationshipwiththeinsuranceofce.Wealsowereinvitedtoparticipateintheofcex19sx2rstconerenceonregulatorymodernizationinDecemberwhereweprovidedapanelisttospeakaboutconsumerprotectionsandthebusinessoinsurance.inhxesox15nwx11x12xbsFIODirectorMichaelMcRaithtestix2edbeoreCongressonOctober25orthex2rsttime.HiswrittenandoraltestimonywerebothlargelyrestatementsothestatutoryauthoritygrantedtotheFIOunderDodd-FrankhedidnotcircumscribetheabilityotheFIOtoengageonissuesintheuture.Foritspartthesubcommitteeheldthehearingtoengagewiththenewdirectorandmakeclearthatthesubcommitteewastakingitsoversightunctionseriously.DuringthehearingDirectorMcRaithstatedthatthepropertycasualtyinsuranceindustryislargelycompetitiveandthatcompaniesengagedinthetraditionalbusinessoinsurancedidcomparativelywellduringthex2nancialcrisis.HealsocategoricallyrejectedthenotionthatthecollapseoAIGwassomehowaailureoinsuranceregulationbyclearlystatingthatitwasnottheinsurancedivisionsoAIGthatweretheproblem.DirectorMcRaithalsomadeclearthatheunderstoodthatthex1cFIOisnotaregulator.x1dLaterhereiteratedthatx1ctheDodd-FrankActisexplicitx13FIOisnotaregulatorandnotasupervisor.x1dThatsaidhetwicevolunteeredthatoneothekeymissionsotheFIOwouldbetolookatlow-incomecommunitiesx13thosetraditionallyx1cunderservedx1dbythex2nancialservicesindustry.ItisnotyetclearwhattheFIOmayorcandointhisareabutitremainsmatteropotentialconcern.FIODirectorMichaelMcRaithattheU.S.InsuranceRegulationandImprovementConferenceonDecember92011.12