Blaine Luetkemeyer: “I thank the gentleman from Florida for yielding. A majority of the Financial Services Committee and, in fact, the…”

“I thank the gentleman from Florida for yielding. A majority of the Financial Services Committee and, in fact, the majority of Congress recognizes the need to preserve the current State- based model of insurance regulation. It is an important conversation because our model, different from others around the world, centers on the protection of policyholders before anything else. H.R. 1478, the Policyholder Protection Act, introduced by the gentleman from Florida (Mr. Posey) and the gentleman from California (Mr. Sherman) works to guarantee the policyholder protections that have served the U.S. insurance system and consumers so well. The bill guarantees the authorities of State regulators to protect an insurance company from contagion, ensuring that policyholders can be paid for claims regardless of how that insurer is organized. It also codifies the existing role of the FDIC to consult with State regulators and requires full consideration of all implications a resolution could have on policyholders. The legislation also ensures that the States maintain authority over an insurer's resolution process. Insurers typically hold large amounts of capital. They do so because the primary function of an insurer is to pay claims. Mr. Posey's bill makes sure those assets which go towards payment of claims aren't used to offset other activities of affiliated businesses.…”