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Thursday, November 6, 2014

Impact of Mid Term Election on Insurance Issues

Election night 2014 may pose serious challenges for those anxious to secure national treatment on insurance issues this year or in the new congress. The House republicans added at least 10 seats to their majority and the Senate republicans added at least 7 seats to become the majority. The question, however, is how does the new political calculus effect our efforts to secure important legislative initiatives.
  • TRIA: TRIA renewal has been delayed in the 113th Congress because the House Financial Services Committee (HFSC) leadership is not as keen as the Senate to extend the current program, thinking instead that because it was intended to be a temporary program upon creation in 2002 that further reauthorization is unnecessary. The HFSC leadership plan is not the consensus approach in the House, with more moderate republicans supporting the Senate's version instead. We now understand that House leadership has suggested that if the HFSC Chairman can find the support he needs to pass the more restrictive package, then they will move forward with that; otherwise, House leadership will bring up and pass the Senate bill with democratic support, just as they did the flood insurance bill earlier this year.
  • Private Flood Insurance: May pass in the lame duck session but is almost certainly to encounter more support in a more conservative and republican controlled Senate. There is a bi-partisan bill in the Senate, which only needed two votes to be successful in the 113th Congress.
  • NARAB II: Should not be effected by the election. Instead the challenge here is procedural. What "must-pass" legislation can NARAB II be attached to in order for it to pass this year? If we have to wait until next year, we will see it pass the House and likely the Senate; however, it is not a high priority for the new republican leadership.
The ABA authored a summary of the election results and impact on banks, including the expected impact on the CFPB and the Dodd-Frank Act, which is available to all ABA members. Read the ABA Summary.

If you would like to participate in the ABIA GR Working Group or the CFPB Task Force, please contact ABIA's Sarah Ferman at 202-663-5510 or