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Wednesday, February 5, 2014

FIO Director's Testimony on the Insurance Modernization Report

By: ABIA Outside Counsel Adam D. Maarec, McIntyre & Lemon, PLLC

Federal Insurance Office Director Michael McRaith testified before the House Financial Services Housing and Insurance Subcommittee yesterday on its recent report, How to Modernize and Improve the System of Insurance Regulation in the United States.

Below is an excerpt of his written testimony:
"In short, the Report concludes that the states generally provide effective consumer protection.... However, the Report also identifies issues for improvement that have received attention from the states, some for years. For example, state-based market conduct examinations and product approval processes have long been unduly burdensome, costly and redundant, but states have been unable to resolve these challenges with uniform practices.  Another example is the proliferation of special purpose vehicles serving as life reinsurance captives, developments which have led to state-by-state variances and raises serious questions about the state-based solvency regime."

Read Director McRaith's Full Written Testimony.

ABIA outside counsel is currently preparing an ABIA-members only summary of Director McRaith's testimony and report findings.