Washington, D.C., (June 3, 2014) — The American Council of Life Insurers (ACLI) applauds the U.S. Senate for approving legislation (S. 2270) that would clarify the Federal Reserve Board’s authority to develop insurance-based capital standards for insurance companies under its supervision.

Section 171 of the Dodd-Frank Act, also known as the Collins Amendment, authorizes the Federal Reserve Board to establish capital standards for life insurance companies that own or are owned by a savings and loan holding company or are designated as systemically important financial institutions (SIFI).

Earlier this year, the Fed temporarily exempted life insurers from bank-centric rules while it explored more appropriate capital standard options for life insurers. S. 2270 would give the Fed the ability to develop insurance-specific standards for insurance companies as it moves forward.

ACLI believes consumers, life insurance companies, the economy and the nation overall benefit from a strong insurance regulatory system. But rules governing life insurers on all issues must be appropriate for life insurers.

There is broad agreement on this position. The Obama administration, Democrats and Republicans in the House and the Senate, state and federal regulators and private industry all agree that life insurers should not be subject to capital standards more suited for the business of banking. S. 2270 addresses this concern.
 
ACLI thanks Sen. Susan Collins (R-Maine), author of the Collins Amendment, Sen. Sherrod Brown (D-Ohio), and Sen. Mike Johanns (R-Neb.) for introducing S. 2270. We also thank the 25 senators who joined them as cosponsors of the legislation.

Companion legislation has been introduced in the U.S. House of Representatives by Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.) and cosponsored by 51 additional representatives. ACLI urges the House to quickly pass H.R. 4510.

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.