NU Online News Service, March 3, 1:17 p.m. EST
Signs are emerging that Michael McRaith, Illinois insurance director, will soon be named the first director of the Federal Insurance Office.
Mr. McRaith was in Washington, D.C. on a speaking engagement and unable to comment, an Illinois Insurance Department spokesman said today.
But a number of industry lobbyists said they had been told by sources close to the situation late Wednesday that the Treasury Department had selected Mr. McRaith for the post.
The lobbyists gave no indication as to when Treasury will formally make an announcement.
A number of members of Congress have urged the Obama administration and the Treasury Department in recent days to act promptly to appoint the FIO director and the insurance official who will be a voting member of the Financial Stability Oversight Council.
Under Dodd-Frank, the president must nominate the person who will be the insurance representative on the FSOC, and the post will be subject to Senate confirmation.
Mr. McRaith is in his 40s and is currently secretary/treasurer of the National Association of Insurance Commissioners.
The FIO post was created under the Dodd-Frank financial services reform law.
Under the law, the FIO will have no regulatory authority, but it will have the power to monitor all activities related to the business of insurance except for health insurance and long term care insurance.
A key role will be advising the Treasury secretary on the financial health of insurers, especially regarding whether an insurer poses a potential risk to the stability of the financial system and should be subject to federal as well as state oversight.
The final language also mandates that the Treasury Department conduct a study of insurance regulation and make recommendations to Congress within 18 months. The House also added a provision to the study requiring that the study include recommendations on the U.S. and global reinsurance markets.
Under Dodd-Frank, the FIO under Treasury will share negotiating authority on bilateral insurance trade agreements with the U.S. Trade Representative.
It will also be required to consult with four congressional committees before the pacts are agreed to, and the Treasury Department may be required to defend such agreements in court under the final agreement.
And, under the agreement, an individual state's consumer protections must be preserved in any bilateral trade pact.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.