CUNA wrote in support of a bill Monday that clarifies the business of insurance is exempt from Consumer Financial Protection Bureau (CFPB) authority. The bill, the Business of Insurance Regulatory Reform Act of 2017 (H.R. 3746) was introduced by Rep. Sean Duffy (R-Wis.) and co-sponsored by Rep. Gwen Moore (D-Wis.).
“The Dodd-Frank Act did not provide the CFPB authority to regulate insurance products. The CFPB's actions in this area have created uncertainty and present serious due process concerns,” wrote CUNA President/CEO Jim Nussle. “Accordingly, we support your efforts to clarify the CFPB’s authority with respect to persons regulated by a State insurance regulator.”
In the letter, CUNA cites the CFPB’s recent short-term, small-dollar loan proposal as including insurance products such as credit insurance, into the loan calculation of annual percentage rate.
“They proposed this despite the fact that insurance is not a loan, is not under the jurisdiction of the CFPB, and is regulated at the state level,” Nussle wrote. “The Bureau has further waded into the area of insurance by seeking a Request for Information which includes questions about the sale of credit insurance. Furthermore, the CFPB has engaged in enforcement actions in this area.”
H.R. 3746 clarifies that Title X of the Dodd-Frank Act exempts insurance business from CFPB authority, and reiterates that regulation of insurance has been delegated to the states.