The Bush administration intends for any Office of Insurance Information created inside the U.S. Treasury Department to have a narrow scope.
David Nason, assistant secretary for financial institutions in the U.S. Treasury Department, made that point Wednesday at an insurance regulation seminar sponsored by the American Enterprise Institute, Washington.
Members of the capital markets subcommittee were voting around the same time to approve an OII bill, H.R. 5840.
The Bush administration is “very encouraged that Congress is taking up the [OII] idea,” Nason said.
The OII bill “should not be viewed as starting creation of an [optional federal charter] mechanism within Treasury, or dealing with the broader issues that we talked about in an OFC,” Nason said. “The OII is a limited vehicle. The authorities we think it should have should be quite limited.”
The first priority of an OII would be dealing with global issues, especially those pertaining to the European Union’s new Solvency-II framework for insurance regulation, Nason predicted.
An OII would not “supplant the Office of the U.S. Trade Representative or the Commerce Department,” Nason said.
But the Bush administration would want the OII to provide advice, Nason said.