Business of Insurance Reform Act

Summary#

This bill would change section 1027(f) of the Consumer Financial Protection Act of 2010. It says that when a person is regulated by a State insurance regulator, the Bureau of Consumer Financial Protection (CFPB) may not enforce this title against that person to the extent the person is engaged in the business of insurance. It also says that if such a person is covered by other enumerated consumer laws or laws transferred under subtitle F or H, the Bureau's authority to enforce those laws should be narrowly construed when the person is engaged in the business of insurance. The bill adds a rule that enforcement should be broadly construed in favor of the authority of State insurance regulators for persons they regulate.

What it means for you#

• If you are a company or person regulated by a State insurance regulator and you are engaged in the business of insurance, this bill would limit the CFPB's ability to enforce its title against you for those insurance activities.
• If you are a consumer of insurance products, the bill clarifies that State insurance regulators would have primary authority over activities defined as the business of insurance. No publicly available information describes specific changes to consumer protections.
• If you are not regulated by a State insurance regulator, this bill does not change the CFPB's authority over you based on the text provided.

Expenses#

No publicly available information on costs, budgetary effects, or changes to federal spending.

Proponents' View#

The bill's title and text indicate its sponsors introduced it to clarify the Bureau's authority and to make enforcement decisions favor State insurance regulators for persons they regulate.

Opponents' View#

No publicly available information on opponents' views in the provided text or metadata.