House Financial Services Committee Issues Report on Transparent Insurance Standards Act
Excerpts of the report follow:
Purpose and Summary
H.R. 5143, the "Transparent Insurance Standards Act of 2016," enhances
First, the
Background and Need for Legislation
For nearly 150 years,
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 111-203) enlarged the federal government's role in the insurance industry by creating a federal office specifically tasked with insurance matters. The Dodd-Frank Act established a Federal Insurance Office (FIO) at
The Dodd-Frank Act brought insurers, insurance holding companies, and insurance subsidiaries within the purview of the newly created FSOC, a 15-member inter-agency group charged with identifying risks to the financial stability of
H.R. 5143 addresses concerns that international negotiations should be consistent with the intent of
H.R. 5143 also outlines a more robust role for the FSOC Independent Member with Insurance Expertise, strengthening
H.R. 5143 will provide for greater transparency, allow for a stronger
Hearings
Committee Consideration
Committee Votes
Clause 3(b) of rule XIII of the Rules of the
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
In compliance with clause 3(c)(2) of rule XIII of the Rules of the
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared by the Director of the
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
U.S.
Hon.
Chairman,
Dear Mr. Chairman: The
If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is
Sincerely,
Enclosure.
H.R. 5143--Transparent Insurance Standards Act of 2016
H.R. 5143 would require the
Based on information provided by the
CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 5143 AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON FINANCIAL SERVICES ON
To view the table, click this link: https://www.congress.gov/congressional-report/114th-congress/house-report/831/1?r=3. In addition, based on information from the
CBO estimates that enacting H.R. 5143 would not increase net direct spending or on-budget deficits by more than
H.R. 5143 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.
The CBO staff contacts for this estimate are
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the
Advisory Committee Statement
No advisory committees within the meaning of section 5(b) of the Federal Advisory Committee Act were created by this legislation.
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to the terms and conditions of employment or access to public services or accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 5143 does not contain any congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9 of rule XXI.
Duplication of Federal Programs
Pursuant to section 3(g) of
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section cites H.R. 5143 as the "Transparent Insurance Standards Act of 2016".
Section 2. Congressional findings
This section sets forth Congressional findings concerning insurance regulatory matters.
Section 3. Objectives for international insurance standards
This section establishes 12 objectives of
Section 4. Requirements for consent to adopt international insurance standards
This section prohibits
Section 5. Reports
This section requires the Treasury Secretary and the Fed Chairman to submit an annual report and testify at least every six months concerning efforts with state insurance commissioners with respect to international insurance standard- setting organizations and international insurance standards. This section also requires a report and congressional testimony on efforts by the Fed Chairman and Treasury Secretary to increase transparency at meetings of the
Section 6. Definitions
This section defines the terms "Board," "Covered Congressional Committees," "International Insurance Standard," "Secretary," and "State Insurance Commissioners."
Section 7. Treatment of covered agreements
This section establishes public notice and comment requirements for covered agreements; requires that the Treasury Secretary and USTR consult with and directly include State insurance commissioners in negotiations regarding a contemplated covered agreement; prohibits such an agreement from being used to establish or provide FIO or
Section 8. Duties of independent member of
This section provides the Independent Member with authority to, among other things, consult with international insurance supervisors and international financial stability counterparts; assist in the representation of
Section 9. State insurance regulator involvement in international standard setting
This section requires that parties representing
Section 10. Rule of construction
This section provides that nothing in this Act or its amendments supports or endorses the domestic capital standard for insurers referred to in section 4(a)(2) or any such domestic capital standards established by the Board.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of the
MINORITY VIEWS
H.R. 5143, the "Transparent Insurance Standards Act of 2016," would prescribe strict negotiating objectives for
Following the 2008 financial crisis, and specifically after the near-collapse of
FIO, the
At best, H.R. 5143 is unnecessary because international insurance negotiations do not create binding
H.R. 5143 is also opposed by Americans for Financial Reform.
Because this legislation would tie the hands of
Wm.
The full text of the report is found at: https://www.congress.gov/congressional-report/114th-congress/house-report/831/1?r=3.
-1283890
Federal Parity Task Force Takes Steps to Strengthen Insurance Coverage for Mental Health and Substance Use Disorders
Penn-Harris-Madison officials approve 2-percent raises for administrators, other employees
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News