McCarran-Ferguson Restoration Act

Summary#

This bill would remove the Federal Insurance Office (FIO) from the Department of the Treasury and create a new United States Insurance Representative (USIR) within Treasury. The USIR must be appointed within one year and may hire experts. The bill lists the USIR's duties: coordinate federal work on international prudential insurance issues, represent Treasury in the International Association of Insurance Supervisors, assist in negotiating and administering covered agreements and the Terrorism Risk Insurance Program, decide whether State insurance measures are preempted by covered agreements, consult with State regulators, and advise the Secretary on prudential international insurance policy. The bill excludes most health insurance, most long-term care insurance, and crop insurance from the USIR's scope. It sets a process for preemption determinations that requires notice to States and to the United States Trade Representative, publication, a comment period, at least a 30-day waiting period before effectiveness, and notification to certain Congressional committees. Preemption determinations are subject to the Administrative Procedure Act and judicial review, with courts reviewing de novo. The USIR must report annually to the President and relevant congressional committees starting two years after enactment and must submit a study and report on international insurance coordination and U.S. insurer competitiveness within two years. The bill also updates other laws to replace FIO references with the USIR and makes changes to the Financial Stability Oversight Council (FSOC), including adding a State insurance commissioner appointed by the President (with Senate confirmation) as a member and setting procedures for that appointment and for an acting State insurance commissioner to serve as a nonvoting member until confirmed.

What it means for you#

• If you are a State insurance regulator: the bill creates a formal USIR role at Treasury that will consult with States and can determine that certain State insurance measures are preempted when they conflict with a covered agreement and meet the bill's criteria. The bill requires notice and a comment process before preemption. The FSOC would include a President-appointed State insurance commissioner.
• If you are an insurer: the USIR would handle international prudential insurance matters, represent the U.S. in international insurance bodies, and may determine whether a covered agreement makes a State measure inapplicable to non-United States insurers under the bill's standards.
• If you are an insurance consumer: the bill requires that any recognition of foreign prudential measures through covered agreements must achieve a level of consumer protection that is substantially equivalent to State regulation, and the USIR must report to Congress on preemption actions and on international insurance coordination and competitiveness.

Expenses#

No publicly available information on costs or estimated budgetary effects is contained in the bill text or metadata provided.

Proponents' View#

No publicly available information in the bill text or metadata describes proponents' stated views or justifications.

Opponents' View#

No publicly available information in the bill text or metadata describes opponents' stated views or objections.