U.S. Rep. Ed Royce, a California Republican, is asking the Federal Insurance Office (FIO) to examine the “nature and scope” of the National Association of Insurance Commissioners’ (NAIC) operations. As part of the Dodd-Frank Act financial reforms, the FIO was set up within the U.S. Treasury and tasked with, among other duties, suggesting how to modernize current insurance regulation. According to a letter sent by Congressman Royce to FIO, the NAIC (a group of state insurance commissioners) “appears to be engaging in regulatory activity.” Royce believes there may be evidence that the NAIC is overstepping its authority. Royce cited as examples certain NAIC services, including a rate filing system and an office that assesses the credit quality of investments. Congressman Royce sits on the House Financial Services Committee and supported the creation of the FIO. In response to Royce’s charges, NAIC President and Florida Insurance Commissioner Kevin McCarty stated, “NAIC as a nonprofit corporation does not have regulatory authority, and I am not aware that it has ever presented itself as having such authority.” (“Congressman Seeks Treasury Exam of State Insurance Group,” Bloomberg, July 12, 2012).
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact email@example.com or call Lexology Customer Services on +44 20 7234 0606.
Congressman scrutinizes National Association of Insurance Commissioners
- Sedgwick LLP
- July 31 2012
If you are interested in submitting an article to Lexology, please contact Andrew Teague at firstname.lastname@example.org.
“I enjoy the CLANZ newsstand and find it highly relevant to my job. I definitely have forwarded various articles to my colleagues on occasion where there is a point of general interest, particularly employment or IT law. I...
“I enjoy the CLANZ newsstand and find it highly relevant to my job. I definitely have forwarded various articles to my colleagues on occasion where there is a point of general interest, particularly employment or IT law. I really appreciate the service, it's a quick way for me to keep up to date in a way I wouldn't otherwise have time to.”