U.S. House Financial Services Committee Approves International Insurance Standards Act of 2017
Dec 15, 2017
Approved by the U.S. House Financial Services Committee on December 13, 2017 in a 56 to 4 vote, H.R. 4537, also known as the “International Insurance Standards Act of 2017,“ must now proceed to the U.S. House Committee on Rules.
Introduced by U.S. Representative Sean Duffy, H.R. 4537 would preserve the State-based system of insurance regulation and provide greater oversight and transparency on international insurance standard negotiations.
To view complete information on H.R. 4537, including the text, click here.
The bill was filed largely in response to concerns expressed about the covered agreement signed by the United States and the European Union to address the U.S. lack of equivalency related to the bloc’s Solvency II directive for the insurance industry, according to BusinessInsurance.com, which reported on the vote this week.
H.R. 4537 requires that:
(1) any such agreement entered into by entities representing the United States may not be agreed to unless it is consistent with existing federal and state law as well as recognizing existing Federal and State laws on the regulation of insurance;
(2) federal entities participating in negotiations must coordinate and consult with state insurance commissioners;
(3) Congress must be consulted on negotiations prior to negotiations taking place, as well as during and prior to entering into an agreement;
(4) authority is granted to Congress to conduct a “fast-tracked” disapproval process; and
(5) Congress has similar disapproval authority on covered agreements.
On October 24, 2017, Connecticut Insurance Commissioner Katharine L. Wade testified before Congress on behalf of the National Association of Insurance Commissioners in support of the legislation.
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