The U.S. House of Representatives has approved H.R. 5461, which clarifies the Federal Reserve Board’s authority to develop insurance-based capital standards for insurance companies under its supervision.
The legislation is sponsored by Reps. Andy Barr (R-Ky.) and Gary Miller (R-Calif.). H.R. 5461 clarifies the Fed’s authority under the Dodd-Frank Act’s “Collins Amendment,” which authorizes the Fed to establish capital standards for life insurance companies that own or are owned by a savings and loan holding company or are designated as systemically important financial institutions.
Both the American Council of Life Insurers (ACLI) and The Independent Insurance Agents & Brokers of America (Big “I”) support the passing of H.R. 5461. ACLI believes consumers, life insurance companies, the economy and the nation overall benefit from a strong insurance regulatory system. But rules governing life insurers on all issues must be appropriate for life insurers. The Big “I” supports Title I of this legislation, which recognizes the unique nature of insurers as financial services providers and the inherit distinction between the banking and insurance markets. It clarifies that insurance companies subject to Federal Reserve oversight are not forced to comply with bank-centric capital standards.
“Today’s action by the House is a common-sense solution to a technical issue within Dodd-Frank,” said Charles Symington, Big “I” senior VP of external and government affairs. “The Big I’ has long supported the premise that banking and insurance are different and therefore should have distinct regulatory standards. We appreciate the House vote on this legislation.”
