[StBernard] Financial Services Committee Passes Federal Insurance Office Act

[Westley Annis]

December 2, 2009                                                    

 

 

Financial Services Committee Passes Federal Insurance Office Act

Final Financial Services Regulatory Reform Bill Passes Unanimously

 

Washington, DC - Today, the House Financial Services Committee passed by a
unanimous voice vote H.R. 2609, the Federal Insurance Office Act, introduced
by Congressman Paul E. Kanjorski (D-PA), Chairman of the Financial Services
Subcommittee on Capital Markets, Insurance, and Government Sponsored
Enterprises.

 

"Today, the Financial Services Committee completed its initial work to
reform the regulatory structure of the financial services industry by
passing my Federal Insurance Office Act," said Chairman Kanjorski.  "I have
been working on this bipartisan bill since 2008, and I am pleased that the
new Administration recognizes the importance of ensuring that the federal
government has a knowledge base on insurance.  With the improvements made to
the bill today through amendments, we can now continue to move this
important bill and the other regulatory reform bills through the legislative
process.  I am eager to pass these bills in the House."

 

Chairman Kanjorski introduced bipartisan legislation earlier this year and
in the last Congress to create a federal insurance office, which was
included in President Obama's proposals for financial services regulatory
reform.  Congresswoman Judy Biggert (R-IL), Ranking Member of the House
Financial Services Subcommittee on Oversight and Investigations, joined as
an original co-sponsor of the 2009 bill when it was first introduced.  

 

A summary of the Federal Insurance Office Act follows:

 

Federal Insurance Office Act

*        Federal Insurance Expertise.  Insurance plays a vital role in the
smooth and efficient functioning of our economy, but the credit crisis
highlighted the lack of expertise within the federal government regarding
the industry, especially during the collapse of American International
Group, also known as AIG, and last year's turmoil in the bond insurance
markets.  A Federal Insurance Office will provide national policymakers with
access to the information and resources needed to respond to crises,
mitigate systemic risks, and help ensure a well functioning financial
system.

*        International Coordination.  Although America's insurance markets
still operate on a state-by-state basis, today's financial markets are
global.  The Federal Insurance Office will therefore provide a unified voice
on insurance matters for the United States in global deliberations.  The
Federal Insurance Office and the United States Trade Representative will
share the authority to enter into and negotiate agreements with foreign
entities.

*        Promote Financial System Stability.  Insurance accounts for 10
percent of the assets of the financial system and employs almost 40 percent
of the employees in the financial services industry.  Having a strong
knowledge base at the Federal level of government will be instrumental in
helping to promote stability in our financial system. 

 

Click here
<http://kanjorski.house.gov/images/stories/Kid/09_10_16%20fio%20amdt%20in%20
nature%20of%20substitute%20to%20hr%202609.pdf>  to view the Federal
Insurance Office Act.

 

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