Eight insurance industry groups are teaming up to oppose efforts by Sen. Jeffrey Merkley to weaken a proposed Office of National Insurance.
Merkley, D-Ore., is calling for the Senate to change S. 3217, the Restoring Financial Stability Act, to narrow the ability of the ONI and its parent, the U.S. Treasury Department, to negotiate international insurance trade agreements without the approval of state insurance regulators.
The Merkley amendment would require the ONI to “navigate a procedural labyrinth” before entering into an international agreement, insurance groups write in a letter sent to the Senate.
The ONI would have to engage in an extensive notification and consultation process with the U.S. Trade Representative, two congressional committees and state insurance commissioners on what is “essentially a regulatory, not a trade, issue,” the groups write.
The Merkley amendment then would subject the ONI decision to an Administrative Procedures Act notice and comment process, the groups write.