NU Online News Service, March 18, 12:34 p.m. EDT

Michael McRaith, the Illinois insurance director who will become the first head of the Federal Insurance Office, has told his staff that he will continue at his present job "through at least the end of May."

Mr. McRaith informed his staff that he would be heading up the FIO just after Treasury Secretary Timothy Geithner made the announcement late Thursday.

In his statement to his staff, Mr. McRaith said, "I have been offered, and accepted, the position of director of the Federal Insurance Office in the U.S. Dept. of Treasury.

"I will be working with you through at least the end of May, however, and look forward to communicating more personally before then."

He added, "In the meantime, thank you for your hard work, professionalism and your commitment to consumer protection. As with every day I have served as director, I am excited to work with you in the coming weeks."

Mr. McRaith is currently the secretary-treasurer of the National Association of Insurance Commissioners (NAIC).

When he takes over as the FIO director, he will be a Treasury Dept. employee and will not be subject to Senate confirmation.

The job will pay between $119,554 and $179,700 a year.

The FIO director is supposed to be a non-voting member on the 13-member Financial Stability Oversight Council (FSOC). He will report directly to Mr. Geithner.

At the same time, the administration still has not named an independent FSOC member with insurance expertise, as required by the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Mr. Geithner recently said that several names are under consideration by the White House. That job is subject to Senate confirmation.

The Dodd-Frank Act gives the FIO no direct domestic regulatory authority, but the office will have the authority to monitor all activities related to the business of insurance except for health insurance and long-term-care insurance.

The FIO will advise the Treasury secretary on the financial health of insurers, and the office will help federal officials decide whether an insurer poses a potential risk to the stability of the financial system and ought to be subject to federal oversight as well as state oversight.

The FIO also will share negotiating authority on bilateral insurance trade agreements with the U.S. Trade Representative.

Special Reports /

FIO Appointee McRaith To Stay With Illinois Dept. Until End Of May

Related Stories

Recommended For You