NAMIC Welcomes Legislation to Support State-Based Insurance Regulation, Clarify CFPB Jurisdiction

Jimi Grande, senior vice president of federal and political affairs for the National Association of Mutual Insurance Companies, made the following statement applauding the introduction of the Business of Insurance Regulatory Reform Act.

“Congress made clear when it crafted the Dodd-Frank Act that the Consumer Financial Protection Bureau does not have regulatory authority over the business of insurance. Since then, the bureau has continued to encroach on issues involving insurance products and services that are rightfully under the authority of the states. State regulators have expertise about the risks and conditions in their individual markets and have been the gold standard for consumer protection for more than 150 years. Congress should take this opportunity to set a clear boundary for the CFPB. Doing so will prevent confusion for consumers and their insurers as well as the potential for duplicative or conflicting regulations.”

Introduced by Sens. Joe Manchin, D-W.Va., and Tim Scott, R-S.C., in the Senate and Rep. Bryan Steil, R-Wis., in the House, the legislation would make explicit that the CFPB does not have any authority over the business of insurance and must defer to state regulators on insurance consumer protection issues.

Article Posted: 01.16.24
Last Updated: 01.16.24