NAIC Testifies Before Congress on International Insurance Deal

WASHINGTON, May 2 -- The National Association of Insurance Commissioners issued the following news release:

President-Elect of the National Association of Insurance Commissioners (NAIC) and Tennessee Insurance Commissioner Julie Mix McPeak testified before Congress today regarding disparate regulatory treatment some European Union (EU) jurisdictions are imposing on certain U.S. insurers doing business in the EU. In January, the EU, United States Trade Representative (USTR) and Treasury negotiated a covered agreement to address these issues. The agreement has not been signed.

"As the states are the primary regulators of the insurance sector and it will be our responsibility to implement the provisions of the agreement, our involvement and buy-in is essential to its success," McPeak testified. "We have confidence that through the bipartisan efforts of this Congress as well as the commitment of this administration we can resolve the ambiguities and ensure that the U.S. obtains the best deal possible for our constituents."

A covered agreement is a specific type of international agreement, defined by the Dodd-Frank Act, negotiated jointly by the U.S. Treasury's Federal Insurance Office and USTR with foreign authorities. The hearing, Examining the United States-European Union Covered Agreement, was held by U.S. Senate Committee on Banking, Housing & Urban Affairs.

"The NAIC submitted to Treasury and USTR a list of provisions to be clarified before the United States moves forward with implementation of the Agreement," McPeak added. "We urge the administration to expeditiously provide the needed clarity of these provisions now rather than taking an imprudent leap of faith that differing interpretations will be 'worked out' at a later date."