A broad coalition of trade associations representing the insurance industry has sent a letter to lawmakers asking to exclude all lines of insurance from the Consumer Financial Protection Agency (CFPA).
The letter was sent to the chairmen and ranking members of both the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services and says including insurers under the CFPA will cause confusion.
“At a bare minimum, the CFPA will increase the potential for different and inconsistently-applied consumer protection standards for all insurers and producers, whether those insurers or producers do business locally, regionally, nationally, or globally,” the letter states.
Furthermore, the letter contends that existing protections obviate the need for regulation of insurance by the CFPA. “Consumers are best protected when they know their rights and the businesses that serve them know their responsibilities, and both act accordingly. Regulation should not be overlapping and duplicative because it wastes consumers’ premium dollars that could otherwise support the offering of additional product and service choices and lower costs for consumers.”
Interestingly, the letter signatories include both proponents of a larger federal role in insurance such as the American Council of Life Insurers, American Insurance Association and the Council of Insurance Agents & Brokers, as well as outspoken opponents of a federal charter for insurers such as the National Association of Mutual Insurance Companies and the Property Casualty Insurers Association of America.
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