The Federal Insurance Office isn’t fooling around.
The FIO, headed by Michael McRaith, at the U.S. Treasury Department put out a notice early on Friday, October 14 in the Federal Register to request comments on how to modernize and improve the system of insurance regulation in the U.S., and specifically put on the table the need for a federal regulator across multiple lines of insurance and any shortcomings in state insurance regulation that might need addressing to better protect consumers.
Also up for discussion are state insurance guaranty fund systems, including the loss of guaranty fund coverage if an insurance company is subject to a Federal resolution authority.
The list of topics under consideration also show the Treasury is concerned about policyholder protection, including the loss of the priority status of policyholder claims over other unsecured general creditor claims. In the case of life insurance companies, it is concerned enough about the loss of the special status of separate account assets and separate account liabilities to invite comment on the issue.