October 25, 2020

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October 23, 2020

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DEPARTMENT OF TREASURY ANNOUNCES THE WHITE HOUSE'S PROPOSALS FOR FINANCIAL REGULATORY REFORM WHICH HAVE A SIGNIFICANT IMPACT ON THE REGULATION OF INSURANCE

On June 17, 2009, the Department of the Treasury announced a summary of legislative proposals outlining the Obama Administration's sweeping reform of the financial services industry.  Of importance to the Insurance industry, the proposal describes the establishment of a new administrative agency, the Office of National Insurance within Treasury.  The Office of National insurance would be tasked with developing a "modern regulatory framework for insurance."  The Treasury's six principles of insurance regulation are:

1. Effective systemic risk regulation with respect to insurance;

2. Strong capital standards and an appropriate match between capital allocation and liabilities for all insurance companies;

3. Meaningful and consistent consumer protection for insurance products and practices;

4. Increased national uniformity either through a federal charter or effective state action;

5. Improve and broaden the regulation of insurance companies and affiliates on a consolidated basis, including those affiliates outside of the traditional insurance business; and

6. International coordination.

While many of the Administration's proposals are consistent with prior proposals by segments of the insurance industry, others seem to substantially extend the reach of federal regulatory authority.

The Administration has expressed the ambitious desire to enact the legislative proposals set forth by the Department of the Treasury by the end of 2009.  We expect vigorous debate in Congress over the coming months. 
© 2020 Clark HIll PLCNational Law Review, Volume , Number 255
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About this Author

Ben Blume, Clark Hill Law Firm, Insurance Attorney

Benjamin A. Blume is a member in Clark Hill’s Chicago office. He is co-chair in Clark Hill’s new Insurance and Reinsurance Practice Group, which will focus on representing client’s in all aspects of the insurance and reinsurance business, including claims counseling, litigation and arbitration, business transactions and tax matters, regulatory issues and government relations, and formation of captive insurers and risk retention groups. His practice includes the handling of issues involving commercials, primary, umbrella, excess and surplus lines, and reinsurance. Benjamin...

312-985-5937
John D. LaBarbera, Insurance Attorney, Clark Hill Law Firm

John D. LaBarbera is a member in Clark Hill’s Chicago office. He is co-chair in Clark Hill’s new Insurance and Reinsurance Practice Group, which will focus on representing client’s in all aspects of the insurance and reinsurance business, including claims counseling, litigation and arbitration, business transactions and tax matters, regulatory issues and government relations, and formation of captive insurers and risk retention groups. He represents insurers in all aspects of their business, including claims counseling, litigation, and dispute resolution. His practice includes the handling of issues involving commercial, primary, umbrella, excess and surplus lines, and reinsurance. John has tried to verdict and regularly advises clients with respect to bad faith, fraud, spoliation of evidence, and other extra-contractual matters. He is also co-editor of the Insurance Quarterly.

Prior to practicing law, John was employed with various insurers in both the health and life and property casualty industries most recently overseeing the handling and resolution of various pollution and toxic tort matters, as well as various matters relating to environmental coverage issues, including litigation, mediation and arbitration. 
 

312-985-5936
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