Dodd-Frank Act – Title V: Insurance
This title is also known as the Federal Insurance Office Act of 2010.
A Federal Insurance office will be established, which a director selected by the Secretary of Treasury will head. The authority and duties of this office include:
- To monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the United States financial system
- To monitor the extent to which traditionally underserved communities and consumers, and low- and moderate-income persons have access to affordable insurance products regarding all lines of insurance, except health insurance
- To recommend to the Financial Stability Oversight Council that it designate an insurer, including the affiliates of such insurer, as an entity subject to regulation as a nonbank financial company supervised by the Board of Governors pursuant to title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act
- To assist the Secretary in administering the Terrorism Insurance Program established in the Department of the Treasury under the Terrorism Risk Insurance Act
- To coordinate Federal efforts and develop Federal policy on prudential aspects of international insurance matters, including representing the United States, as appropriate, in the International Association of Insurance Supervisors (or a successor entity) and assisting the Secretary in negotiating covered agreements
- To determine whether State insurance measures are preempted by covered agreements to consult with the States (including State insurance regulators) regarding insurance matters of national importance and prudential insurance matters of international importance
State Based Insurance Reform or Non-admitted and Reinsurance Reform Act of 2010
Only home states are allowed to collect premium tax payment for non-admitted insurance from an insured. The Congress intends that each State adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact that provide for the reporting, payment, collection, and allocation of premium taxes for non admitted insurance.
Regulation of Non-admitted Insurance by Insured’s Home State
Home state will have the sole authority to administer statutory and regulatory requirements for non-admitted insurance.
Broker licensing: No State other than an insured’s home State may require a surplus lines broker to be licensed in order to sell, solicit, or negotiate non-admitted insurance.
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