THURSDAY, OCTOBER 27, 2011
Things to Learn About the Federal Insurance Office
by Ed Snaneh, Agent for Auto Insurance in Chicago Illinois
4717 N Pulaski Road, Chicago Illinois 60630
President Obama under the 2010’s Dodd-Frank Wall Street Reform Act, has created a new federal agency known as the Federal Insurance Office (FIO), basically to watch insurance companies and to present data to Congress on issues related to reforming the financial markets. The new Federal Insurance Office FIO will have no authoritative powers.
The objectives of the Federal Insurance Office include the following:
- Advises the US Treasury on major federal and international insurance policy issues.
- Monitors all facets of the insurance industry, including the availability of affordable insurance to the underserved localities and insurance shoppers.
- Assists in the administration of the Terrorism Risk Insurance Act.
US Congress provided the Federal Insurance Office with the power to diagnose matters and gaps in the insurance legislative bodies, or issues that may contribute to a systemic crisis in the insurance industry. The Federal Insurance Office will make recommendations to the Financial Stability Oversight Council pertaining regarding certain insurance companies that should be subject to supervision of the Federal Reserve's Board of Governors.
The initial objectives of the FIO would be to expand federal level knowledge of state-related insurance legislative. At the present time state insurance offices are the main legislators for the insurance industry for more than a hundred year. Recently FIO Chairman, Michael McRaith made statements to reassure state legislators that his office is not and cannot be a full-fledged insurance regulatory body. The latest statements of McRaith were made in front of the House Financial Services Subcommittee on Insurance.
However, Mr. McRaith evaded answering the question of whether or not the 'Consumer Financial Protection Bureau' should be granted authority over insurance issues by stating that it would 'inappropriate for me to comment at this time.' Also a product of massive legislative response to the financial meltdown of 2008, will police the market for money on behalf of savers and borrowers. The Bureau, part of the of the 2010 Dodd-Frank Wall Street Reform Act, is believed to have future plan to extend its power to a wide range of financial services, beyond mortgages and real estate to include credit and debit cards, consumer loans on cars, payday loans, credit reporting agencies, debt collectors agents and other financial advisory services, to mention a few.
Jimi Grande, one of the senior vice presidents of the National Association of Mutual Insurance Companies (NAMIC) welcomed Mr. McRaith remarks stating that Mr. McRaith's statements indicate that he has an understanding of the role the Federal Insurance Office was created to fill.
Illinois Connection
Michael McRaith is the former chairman of the Illinois Department of Insurance. Mr. McRaith stated that the Illinois Department of Insurance is 'responsible for highly technical solvency regulation as well as direct interaction with both business and individual insurance consumers,' according to an interview with the US Treasury.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|
Blog Archive
2012
May
March
February
January
2011
December
November
October
September
August
July
June
May
April
March
February
January
2010
 |