Bill That Could Narrow CFPB's Insurance Authority Is Back

Leaders of the National Association of Insurance Commissioners wrote in support of S. 4325.

The list of co-sponsors of the 2017-2018 bill included Sen. Tammy Baldwin, D- Wis., Sen. Mike Rounds, R-S.D., and Sen. Joni Ernst, R-Iowa, in addition to Scott and Manchin.

The new bill: The list of organizations officially supporting the new version of the CFPB scope bill includes the American Council of Life Insurers and the National Association of Insurance and Financial Advisors along with property and casualty insurer groups, the Consumer Credit Industry Association and the U.S. Chamber of Commerce.

Manchin noted in the bill announcement that the bill would hold the CFPB to the same scope limitations as the U.S. Treasury Department's Federal Insurance Office, another entity created by the Dodd-Frank Act.

Scott said the bill will protect state-based insurance regulation from "unchecked bureaucrats in Washington."

ACLI President Susan Neely said the new bill makes a clear statement that oversight of the business of insurance should remain within the purview of the states.

"Through wars, economic turmoil, global pandemics and structural shifts in the industry, state insurance regulators have demonstrated their ability to oversee insurers and protect the best interests of consumers," Neely said.

The U.S. Capitol rotunda. Photo: Diego M. Radzinschi/ALM