Wednesday, September 17, 2014
ACLI applauds the U.S. House of Representatives for approving legislation (H.R. 5461) clarifying the Federal Reserve Board’s authority to develop insurance-based capital standards for insurance companies under its supervision.
Measure Ensures Fed Applies Appropriate Capital Standards for Life Insures
Washington, D.C., (September 16, 2014) — The American Council of Life Insurers (ACLI) applauds the U.S. House of Representatives for approving legislation (H.R. 5461), sponsored by Reps. Andy Barr (R-Ky.) and Gary Miller (R-Calif.), clarifying the Federal Reserve Board’s authority to develop insurance-based capital standards for insurance companies under its supervision.
Based on legislation introduced by Rep. Miller and Rep. Carolyn McCarthy (D-N.Y.), H.R. 5461 would clarify the Fed’s authority under the Dodd-Frank Act’s “Collins Amendment.”
The Collins Amendment -- Section 171 of the Dodd-Frank Act -- 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).
H.R. 5461 gives the Fed the ability to develop insurance-specific standards for insurance companies — not bank-centric standards — 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 banking.
With the Fed beginning its work on the new standards, it is urgent for Congress to send to the president legislation addressing life insurer capital standards.
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.