Insurance players have a shot at overcoming partisan gridlock in Washington and getting a bill they like signed into law.
The bill, S. 1463, would fix a glitch in the rules governing the Financial Stability Oversight Council — a body that’s supposed to help the federal government identify, monitor and manage potential sources of systemic risk.
The House has approved a legislative package that includes its version of the FSOC fixer bill, H.R. 3110, by a 407-1 vote.
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Members of the Senate Banking, Housing and Urban Affairs Committee approved its version of the bill, S. 1463, last week by a voice vote.
Bill supporters now have to persuade Senate leaders to find the time to get the bill onto the Senate floor.
The Dodd-Frank Act calls for most of the members of FSOC to be the heads of federal agencies, such as the Federal Reserve chair and the head of the U.S. Securities and Exchange Commission. Treasury Secretary Steven Mnuchin is the council chair.
Because the United States leaves most aspects of insurance regulation to the states, the country has no general-purpose national insurance regulatory agency. To make up for the lack of a top-level insurance regulatory agency, the Dodd-Frank Act requires the president to appoint an “independent member with insurance expertise” to serve on the council for a six-year term.
Treasury Secretary Steven Mnuchin (Photo: Treasury)
Under current rules, if the insurance member’s term expires, and the Senate has not yet confirmed a successor, the seat for the insurance member is empty.