WASHINGTON – The Property Casualty Insurers Association of America (PCI) applauds Senators David Vitter (R-LA) and Jon Tester (D-MT) and Representatives Bill Posey (R-FL) and Brad Sherman (D-CA) for introducing the Policyholder Protection Act of 2015. The bill clarifies Congressional intent with regard to provisions of the Dodd-Frank Act and would protect consumers of home, auto and business insurance provided by companies that are regulated at the state level but also are federally regulated due to the insurer’s affiliation with a bank or thrift.
“PCI applauds Senators Vitter and Tester and Representatives Posey and Sherman for their leadership in introducing this bipartisan, bicameral legislation. This important legislation clarifies Congressional intent with regard to several provisions of the Dodd-Frank Act to protect insurer solvency and, most importantly, insurance policyholders,” said Nat Wienecke, PCI’s senior vice president, federal government relations.
The bill prevents federal regulators from transferring the assets of state regulated insurance companies to rescue affiliated, failed non-insurance financial firms without the consent of state insurance regulators. It also clarifies Congressional intent that state insurance regulators should have primary authority to resolve a failing insurer.“This is a common sense clarification to limit a regulatory conflict of interest and avoid harming insurance policyholders to support a failed non-insurance financial firm that is affiliated with an insurer. Insurers are already responsible for resolving their own failures without help from other non-financial firms. Funds intended to protect insurance consumers should not be used to support risky investments of non-insurance financial firms. PCI strongly supports the Policyholder Protection Act of 2015, and we encourage its quick passage,” concluded Wienecke.