At the National Council of Insurance Legislators (“NCOIL”) Annual Meeting held in Oklahoma City in early December, NCOIL’s Financial Services and Executive Committees passed a resolution entitled “Resolution Asserting McCarran-Ferguson Reverse Preemption over the Supervision of Insurance Companies by the Federal Reserve Board and its Examiners” (“Resolution”). The Resolution was developed in response to concerns that the Federal Reserve may be subjecting carriers to the kind of regulation that is reserved for state insurance regulators under the McCarran-Ferguson Act. The Resolution encourages Congress to provide oversight, perhaps including legislation, to ensure that the Federal Reserve Board’s supervisory activities concerning insurance companies do not impede the province of state insurance regulators. The Resolution is the latest in a growing chorus of expressions from the industry about potential overreach by the Federal Reserve Board.
NCOIL will now send a copy of the Resolution to the President of the United States, the Chairman of the Board of Governors of the Federal Reserve, the Secretary of the U.S. Treasury, the Director of the Federal Insurance Office, the Chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, and the Chairman of the Committee on Financial Services of the U.S. House of Representatives.