H.R.3354 - Primary Regulators of Insurance Vote Act of 2025 (119th Congress)
Summary
H.R.3354, the Primary Regulators of Insurance Vote Act of 2025, aims to amend the Financial Stability Act of 2010. The key change is to include a State insurance commissioner as a voting member of the Financial Stability Oversight Council (FSOC). This commissioner would be appointed by the President with Senate approval, following recommendations from the National Association of Insurance Commissioners (NAIC).
Expected Effects
The bill intends to give state insurance regulators a direct voice in federal financial stability oversight. This could lead to better-informed decisions by the FSOC regarding insurance-related matters. It also removes the existing nonvoting state insurance commissioner role.
Potential Benefits
- Enhanced representation of state insurance interests within the FSOC.
- Improved expertise and understanding of the insurance industry in federal financial stability assessments.
- Potential for more balanced and informed regulatory decisions.
- Streamlined process by replacing the nonvoting member with a voting member.
- Increased accountability through presidential appointment and Senate confirmation.
Most Benefited Areas:
Potential Disadvantages
- Potential for political influence in the appointment of the state insurance commissioner.
- Possible conflicts of interest between state and federal regulatory objectives.
- Risk of the NAIC's recommendations being disregarded by the President.
- Could create bureaucratic hurdles in the appointment process.
- May not significantly alter FSOC decisions if the state insurance commissioner's vote is consistently outweighed.
Constitutional Alignment
The bill appears to align with the Constitution, particularly Article I, Section 8, which grants Congress the power to regulate commerce. The appointment process, involving the President and Senate, adheres to the Appointments Clause (Article II, Section 2, Clause 2). The bill does not appear to infringe on any individual liberties or rights outlined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).