In a joint comment letter to the Federal Reserve Board, the American Council of Life Insurers (ACLI) and the American Insurance Association (AIA) are voicing concern over changes to the Truth-in-Lending Act (TILA).

The letter says the proposed changes to Regulation Z would mandate language that would dissuade consumers from purchasing credit insurance products and also infringe on the state regulation of insurance as defined in the McCarran-Ferguson Act.

“We believe that the Board’s Proposed Rule regarding disclosures of certain optional insurance available to consumers in connection with extensions of credit is inappropriate in view of comprehensive existing state insurance regulatory requirements, which include, among other things, extensive disclosures to consumers, review of forms, and market conduct examinations,” the letter states. “We believe that state insurance authorities are in a better position than the Board to determine what disclosures are appropriate for citizens of their states that purchase these products. In this regard, we believe that the Board’s proposal conflicts with, and is preempted by, the McCarran-Ferguson Act (the “McCarran Act”), which recognizes the primary role of the states in regulating the business of insurance expressly delegated by Congress.”




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