The National Association of Insurance and Financial Advisors has joined the chorus of insurance groups welcoming a decision to put insurance outside Consumer Financial Protection Agency jurisdiction.
“To impose another layer of regulation on top of an already robust insurance regulatory regime is unnecessary and would provide no additional benefit to consumers,” NAIFA President Thomas Currey says in a statement.
Members of the House Financial Services Committee today voted 39-29 to approve H.R. 3126, the bill that would create the CFPA.
They agreed Wednesday by a voice vote to add an amendment proposed by Rep. Gwen Moore, D-Wis., and Rep. Erik Paulsen, R-Minn., that would firmly exclude just about all insurance companies and products from CFPA oversight.
The original version of the bill would have left the CFPA regulate insurance products sold in conjunction with banking services, such as credit insurance and credit life insurance. The CFPA could still have authority over a person who was involved in insurance activities but somehow was not subject to regulation by any state insurance regulator.
By adopting the Moore amendment, the House Financial Services Committee has recognized that insurance products are already subject to comprehensive state regulation, Currey says.