The American Council of Life Insurers (ACLI) is welcoming the introduction of a bill that could make a state insurance commissioner a voting member of the Financial Stability Oversight Council (FSOC).
The bill is the Primary Regulators of Insurance Vote Act of 2019 bill, PRIVA.
The Senate version of the PRIVA bill, S. 1298, was introduced by Sens. Tim Scott, R-S.C., and Doug Jones, D-Ala.
The House version, H.R. 2479, was introduced by Reps. Denny Heck, D-Wash., and Barry Loudermilk, R-Ga.
Congress put the provision creating FSOC in the Dodd-Frank Act.
FSOC is supposed to help federal regulators keep track of organizations and trends that could affect the stability of the U.S. financial system.
FSOC includes officials such as the Treasury secretary and the Federal Reserve Board chairman as full voting members.
FSOC also includes an independent voting member with insurance expertise.
Top state insurance regulators do not automatically get a voting seat on the council.
ACLI President Susan Neely said in a statement that ACLI likes Thomas Workman, the current FSOC voting member with insurance expertise, but that having an insurance commissioner serve as a voting FSOC member would provide another informed and knowledgeable perspective.
“America’s life insurers protect 90 million American families with financial products that reduce risk and increase their financial security,” Neely said in the statement. “The people we serve benefit from the clear, consistent state-based system of insurance regulation. State regulators supervise life insurers’ solvency to ensure they can meet their commitments to policyholders. The FSOC would benefit greatly by having a state insurance commissioner as a voting member.”
— Read Life Groups Love Trump’s FSOC Nominee, on ThinkAdvisor.