Southern Wisconsin Times

Washington, D.C. - Congressman Bryan Steil (WI-01) has introduced the Business of Insurance Regulatory Reform Act, a legislation aimed at clarifying the limits of the Consumer Financial Protection Bureau's (CFPB) authority over insurance. The bill states that the CFPB cannot exercise its authority over entities engaged in the business of insurance, regardless of whether they offer products or services subject to other consumer financial protection laws. Instead, the regulation of the insurance industry will continue to be the responsibility of state insurance regulators.

According to Congressman Steil, "State insurance regulators have a strong track record of effective regulation of the insurance industry. When Congress created the CFPB, it excluded the insurance business from the Bureau's mandate. Unfortunately, the CFPB has tried to expand its authority without any accountability. This legislation makes it clear to the CFPB that it has no authority to regulate the business of insurance. It’s time for the Bureau to start operating within the boundaries set by Congress, and this bill is a step forward in making sure it does."

The Business of Insurance Regulatory Reform Act has also been introduced in the Senate by U.S. Senate Banking, Housing, and Urban Affairs Ranking Member Tim Scott (R-SC) and Senator Joe Manchin (D-WV). Ranking Member Scott, who has 23 years of experience in the insurance industry, emphasized the importance of protecting the state-based insurance system. He stated, "As the CFPB continues to overstep its authority and operate beyond its jurisdiction, this bill will protect our unique system of state-based insurance regulation that has resulted in highly competitive, fair markets across the country from unchecked bureaucrats in Washington."

Senator Manchin, in his support of the legislation, highlighted the need to reaffirm the precedent of regulating insurance at the state level. He stated, "This commonsense legislation would better codify the CFPB's current boundaries and hold it to the same standard as the Federal Insurance Office, preventing CFPB from regulating the business of insurance and reminding the agency that this authority resides with states."

The Business of Insurance Regulatory Reform Act has received endorsements from various organizations, including the Wisconsin Credit Union League, American Council of Life Insurers, American Land Title Association, American Property Casualty Insurance Association, Consumer Credit Industry Association, Council of Insurance Agents and Brokers, Independent Insurance Agents & Brokers of America, National Association of Insurance and Financial Advisors, National Association of Mutual Insurance Companies, National Association of Professional Insurance Agents, The Surety & Fidelity Association of America, and the United States Chamber of Commerce.

The bill aims to ensure that the CFPB operates within the boundaries set by Congress and respects the authority of state insurance regulators. To read the full text of the bill, click [here](link to bill).