Rep. Judy Biggert (R-IL), Chairman of the House Financial Services Subcommittee on Insurance, Oversight, and Community Opportunity announced late last week that her subcommittee would not consider any optional federal charter (OFC) legislation during the current session of Congress, according to NAPSLO's Washington, D.C. Lobbyists, B&D Consulting.
Rep. Biggert and her staff stated that their priorities for the term are primarily reform of the National Flood Insurance Program and oversight of the Dodd-Frank Wall Street Consumer Protection and Wall Street Reform Act, specifically the Financial Stability Oversight Council and the Federal Insurance Office.
This pause in the federal vs. state regulator debate is just that, though: a pause. Rep. Ed Royce (R-CA), who earlier this year sought the Financial Services Committee chairmanship without success, has voiced his plan to introduce new OFC legislation later this year. Rep. Royce has backing in this effort from many trade associations and from (generally larger) insurance companies, whose support stems from desire for a federal regulator to represent U.S. insurer interests on international and reinsurance matters. Stakeholders can rest assured that this debate will continue far into the future.