2015 0515 - BRIEF OF SCHOLARS OF INSURANCE REGULATION AS AMICI CURIAE IN SUPPORT OF DEFENDANT FINANCIAL STABILITY OVERSIGHT COUNCIL - 28p

• Daniel Schwarcz is the lead author of the brief and a Professor of Law and Solly Robbins Distinguished Research Fellow at the University of Minnesota Law School

5 Amicus Daniel Schwarcz has testified on this point repeatedly to U.S. congressional committees since the 2010 passage of Dodd-Frank. See Examining Ins. Capital Rules and FSOC Process: Hearing before Subcomm. on Sec., Ins., & Inv. of the S. Comm. on Banking, Hous., & Urban Affairs, 114th Cong. (April 30, 2015) (statement of Daniel Schwarcz); Finding the Right Capital Regulation for Insurers: Hearing before the Subcomm. on Fin. Inst. & Consumer Prot. of the S. Comm. on Banking, Hous., & Urban Affairs, 113th Cong. (March 11, 2014) (statement of Daniel Schwarcz); Legislative Proposals to Reform Domestic Ins. Policy: Hearing before the Subcomm. on Hous. & Ins. of the H. Comm. on Fin. Servs., 113th Cong. (May 20, 2014) (statement of Daniel Schwarcz); Ins. Oversight and Legislative Proposals: Hearing before the Subcomm. on Ins., Hous. & Cmty. Opportunity of the H. Comm. on Fin. Servs., 112 Cong. (Nov. 16, 2011) (statement of Daniel Schwarcz). This point is also made in the Report of the NAIC and the Federal Reserve Joint Subgroup on Risk-Based Capital and Regulatory Arbitrage (2002), a working group of insurance and banking regulators. The Report explained the core differences between risk-based capital rules in insurance and banking by noting that “[i]nsurance company regulators place particular emphasis on consumer (policyholder) protection” while “banking regulators
focus on depositor protection and the financial stability of regulated entities on a going concern basis.”