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).