WASHINGTON (JUNE 30, 2010) The National Association of Mutual Insurance Companies (NAMIC) responded to today’s vote by the House of Representatives to approve the Dodd-Frank Wall Street Reform and Consumer Protection Act.
“After more than a year and a half since work began on this legislation, the end result is a bill that recognizes the unique nature of property/casualty insurance and the stability of the state-based regulatory system throughout the financial crisis,” said Jimi Grande, senior vice president of federal and political affairs. “The Dodd-Frank bill appropriately limits the ability of the federal government to intrude on the property/casualty industry and avoids duplicating the efforts of state insurance regulators in areas such as data collection and consumer protection.”
The House passed the legislation by a vote of 237 to 192. The measure is currently awaiting action by the Senate. Under the legislation, a new Federal Insurance Office would be established within the Treasury to provide Congress and the administration with information regarding the insurance industry in trade negotiations and other policy decisions.
“Today’s vote marks the end of the legislative process in the House, but not of our concerns,” Grande said. “NAMIC will continue working as the FIO takes shape and beyond to ensure that it remains true to the intent with which it was created; to serve as a source of information and expertise for those making policy decisions and not as a policymaker itself.”
In addition, the bill also establishes a streamlined system of regulation for multi-state non-admitted, or surplus lines, insurance contracts. Under the new system, the home state of the insured would serve as the primary regulator for the insurance contract.
“NAMIC has sought for years to improve the regulatory system for surplus lines coverage, and we are pleased that this provision was included in the final legislation,” Grande said. “This bill will make coverage for non-admitted risks simpler and more affordable for consumers.”
For further information, contact
Director of Media Relations
(202) 580-6742 Tel
(202) 379-6490 (mobile)