Office of National Insurance Proposed; Office Would Monitor All Aspects of Insurance Industry, Also Would Gather Data
July 27, 2009

The U.S. Treasury released detailed information on the proposed Office of National Insurance last week as part of the latest Systemic Risk Legislation sent to Capitol Hill by the Obama administration. According to the report, the Office of National Insurance would be a part of the Department of the Treasury, and would "monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry of the [U.S.] financial system."

The office also would be a data-gathering body.

"In carrying out its functions under subsection (c), the Office may receive and collect data and information on and from the insurance industry and insurers, enter into information-sharing agreements, analyze and disseminate data and information, and issue reports regarding all lines of insurance except health insurance," reads the report, issued by the U.S. Treasury last week.

Small insurers would be exempted from the collection of information portion of the legislation.

The office also would have the power to require by subpoena the production of the data or information requested.

"In the case of contumacy or failure to obey a subpoena, the subpoena shall be enforceable by order of any appropriate district court of the United States," adds the bill.

The Office of National Insurance also would have the ability to pre-empt state insurance measures if state legislation "is inconsistent with an International Insurance Agreement on Prudential Measures." The report outlines the process by which a piece of state legislation would be pre-empted.

CLICK HERE for full report.

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