CUNA wrote in support of a Senate bill Wednesday that would clarify that the business of insurance is exempted from the Consumer Financial Protection Bureau’s authority. The Business of Insurance Regulatory Reform Act was introduced by Sens. Tim Scott (R-S.C.), Tammy Baldwin (D-Wis.), Joe Manchin (D-W.V.) and Mike Rounds (R-S.D.).
“The Business of Insurance Regulatory Reform Act is a common-sense piece of legislation that would bring more clarity to the regulation of insurance products,” said CUNA President/CEO Jim Nussle. “Credit unions support the efforts of the bipartisan group of cosponsors who are seeking to rectify the CFPB’s authority on this matter and thank Sen. Scott for introducing this bill.”
“We appreciate your clarification that Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act exempted the business of insurance from the CFPB’s authority and reiterates that the regulation of insurance has been delegated to the states,” CUNA's letter reads, noting several instances in which the bureau has proposed that would give it authority over insurance business.
These include seeking information on the sale of credit insurance and several enforcement actions.
“Consumers, particularly those who may not have access to insurance products through work or elsewhere, may rely on their credit union for these products, but the Dodd-Frank Act did not provide the CFPB authority to regulate insurance products,” the letter reads. “The CFPB's actions in this area have created uncertainty and present serious due process concerns.”
CUNA also supports the House version of the bill, which passed the House Financial Services committee in January.