Measure Supports Life Insurers' Mission To Provide Financial Security To Consumers.

Washington, D.C., (December 10, 2014) — The American Council of Life Insurers (ACLI) applauds the U.S. House of Representatives for approving legislation clarifying the Federal Reserve Board’s authority under the Dodd-Frank Act’s “Collins Amendment” to develop insurance-based capital standards for insurance companies under its supervision.

The Senate passed the measure, S.2270, on June 3. It now goes to the White House for signing.

The amendment, also known as Section 171 of the Dodd-Frank Act and named after Sen. Susan Collins (R-Maine), 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).

This legislation, supported by Sen. Collins, gives the Fed the ability to develop insurance-specific standards — not bank-centric standards — for insurers 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.

“The legislation will support life insurers’ mission of providing financial and retirement security products that American consumers rely upon,” ACLI President and CEO Dirk Kempthorne said. 

Governor Kempthorne added that ACLI appreciates the efforts of the legislation’s lead sponsors: Sens. Collins, Sherrod Brown (D-Ohio) and Mike Johanns (R-Neb.) and Reps. Carolyn McCarthy (D-N.Y.) and Gary Miller (R-Calif.). ACLI also recognizes the hard work of Senate Banking Committee Chairman Tim Johnson (D-S.D.), Senate Banking Committee Ranking Member Mike Crapo (R-Idaho), House Financial Services Chairman Jeb Hensarling, House Financial Services Ranking Member Maxine Waters and the Senate and House leadership.

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.