Federal Insurance Office Recommendations on Direct Federal Involvement in Insurance Regulation and Modernization
Dec 18, 2013
In its long-awaited report to Congress on how to modernize and improve the system of insurance regulation in the United States released December 12, 2013, the Federal Insurance Office (“FIO”) listed the following recommended areas for direct federal involvement in insurance regulation and modernization:
- Federal standards and oversight for mortgage insurers should be developed and implemented.
- To afford nationally uniform treatment of reinsurers, the FIO recommends that Treasury and the United States Trade Representative pursue a covered agreement for reinsurance collateral requirements based on the National Association of Insurance Commissioners Credit for Reinsurance Model Law and Regulation.
- The FIO should engage in supervisory colleges to monitor financial stability and identify issues or gaps in the regulation of large national and internationally active insurers.
- The National Association of Registered Agents and Brokers Reform Act of 2013 should be adopted and its implementation monitored by the FIO.
- The FIO will convene and work with federal agencies, state regulators, and other interested parties to develop personal auto insurance policies for U.S. military personnel enforceable across state lines.
- The FIO will work with state regulators to establish pilot programs for rate regulation that seek to maximize the number of insurers offering personal lines products.
- The FIO will study and report on the manner in which personal information is used for insurance pricing and coverage purposes.
- The FIO will consult with Tribal leaders to identify alternatives to improve the accessibility and affordability of insurance on sovereign Native American and Tribal lands.
- The FIO will continue to monitor state progress on implementation of Subtitle B of Title V of the Dodd-Frank Act, which requires states to simplify the collection of surplus lines taxes, and determine whether federal action may be warranted in the near term.
To access the complete report, entitled “How To Modernize And Improve The System Of Insurance Regulation In The United States,” click here.