Scott, Manchin Lead Bill to Protect State-Based Insurance System, Prevent CFPB Overreach

Washington, D.C. – Today, Ranking Member Tim Scott (R-S.C.) and Senator Joe Manchin (D-W.Va.) introduced legislation to protect our nation’s state-based insurance regulatory system and ensure the Consumer Financial Protection Bureau (CFPB) does not overstep their statutory authority. Their bill, the Business of Insurance Regulatory Reform Act, would clarify the jurisdiction granted to the CFPB by the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and affirm that state insurance regulators are best positioned to oversee insurers and safeguard the interests of consumers…

R Street Institute Senior Manager of Federal Affairs Anthony Lamorena said, “The Business of Insurance Regulatory Reform Act is common sense legislation that properly clarifies the jurisdiction and purview of state regulators when it comes to the business of insurance. With the responsibilities provided under the McCarran-Ferguson Act, these regulators have displayed their effectiveness in exercising their role to protect consumers. Their close proximity to these individuals best positions them to respond to their concerns instead of the Consumer Finance Protection Bureau. The R Street Institute applauds the bipartisan efforts of Sens. Tim Scott (R-SC) and Joe Manchin (D-WV) on this front, and we are happy to endorse this legislation again this Congress.”