1940 - LR - Legislation: The Uniform Insurers Liquidation Act - 12p
Although there has been a vast improvement in national bankruptcy legislation, with the passage of the Chandler Act in 1938,2 so that the receivership device has been abandoned to a large degree by most corporations, insurance companies have been excluded from the Act.3
Consequently, they must still rely upon receivership and local statutory substitutes for insolvency proceedings
Support Legislation to Help Protect Policyholders During an Insurance Receivership
Current law provides no deadline to the federal government for filing claims in an insurance receivership, causing proceedings to drag on for years and reducing recoveries for insurance consumers.
Congress should support NAIC proposed legislation that would require the federal government to file claims it may have against insolvent insurance companies within a specified time consistent with bankruptcy proceedings.
Privide State Insurance Regulators a Vote on the Financial Stability Oversight Council (FSOC) (H.R. 3099)
The insurance sector is the only financial services sector whose primary regulator is not a voting member of the FSOC.
The Primary Regulators of Insurance Vote Act (H.R. 3099) would grant state regulators full participation on FSOC by allowing them to vote.
Oppose Preemption of State Insurance Data Privacy and Data Security Standards
Federal data privacy and security legislation should acknowledge the state insurance regulatory framework and not undermine state laws and regulations to protect the best interests of insurance consumers.