• Treasury Department Releases Report on Insurance Regulation.
On December 12th, the Treasury Department's Federal Insurance Office released a report on how to modernize and improve the system of insurance regulation in the United States. The report concludes that in some circumstances, policy goals of uniformity, efficiency, and consumer protection make continued federal involvement necessary to improve insurance regulation. However, the report concludes that insurance regulation in the United States is best viewed in terms of a hybrid model, where state and federal oversight play complementary roles. Treasury Department Press Release. Bloomberg summarized the report, which refers to the government $18 billion bailout of American International Group as a prime reason for coordinating oversight of the industry. The report also calls for closer scrutiny of mortgage insurance and the accounting practices insurers use to reduce their risk exposure. Summary.
  • CFPB Study of Consumer Use of Arbitration Clauses.

On December 12th, the Consumer Financial Protection Bureau ("CFPB") released preliminary research on the use of arbitration clauses in connection with consumer financial products and services. CFPB Press Release.