Bills introduced in both chambers to clarify CFPB supervision of insurance

A bill to ensure the CFPB does not expand its authority under the Consumer Financial Protection Act has the support of America’s Credit Unions and state Leagues. Senate Banking Committee Chairman Tim Scott, R-S.C., and Rep. Bryan Steil, R-Wis., introduced the Business of Insurance Regulatory Reform Act (S. 2419/H.R. 4735) last week.

Specifically, it would amend the Consumer Financial Protection Act to revise the authority of the CFPB over activities regulated by a state insurance regulator, exempting the business of insurance from CFPB oversight.

America’s Credit Unions President/CEO Jim Nussle wrote in support of the bill, noting it would “provide needed clarity to ensure that states’ rights to regulate insurance are explicit” and is necessary “because despite the CFPB exemption, there have been certain instances where the CFPB has seemingly overstepped its jurisdictional authority, which would create immense uncertainty.”

“We appreciate Chairman Tim Scott’s leadership in working to clearly define the boundaries of the Consumer Financial Protection Bureau’s authority as it relates to the business of insurance,” said Dan Schline, president/CEO of the Carolinas Credit Union League. “On behalf of credit unions across the Carolinas and the nearly seven million members they serve, we thank Chairman Scott for his continued commitment to this important issue.”

“We appreciate the opportunity to share our continued support for these proposed revisions. They would have a positive impact on Wisconsin’s credit unions and the 3.9 million Wisconsinites that trust them as their financial partner,” said Sarah Wainscott, president/CEO of the Wisconsin Credit Union League. “TruStage, a mutual insurance holding company and vital credit union system partner, serves 94 percent of credit unions nationwide. Their ability to serve credit unions effectively and efficiently in Wisconsin and throughout our country is critical.”