The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) established the Federal Insurance Office (FIO) within the U.S. Department of the Treasury.
The Dodd Frank Act grants FIO certain financial stability, monitoring, and international responsibilities. In addition to advising the Secretary of the Treasury (Secretary) on major domestic and prudential international insurance policy issues and serving as a non-voting member on the Financial Stability Oversight Council (Council), FIO is specifically authorized to:
- monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the U.S. financial system;
- monitor the extent to which traditionally underserved communities and consumers, minorities, and low- and moderate-income persons have access to affordable non-health insurance products;
- recommend to the Council that it designate an insurer as an entity subject to regulation as a nonbank financial company supervised by the Board of Governors of the Federal Reserve System (Federal Reserve);
- assist the Secretary in administering the Terrorism Risk Insurance Program, which was established in the Department of the Treasury under the Terrorism Risk Insurance Act of 2002;
- coordinate federal efforts and develop federal policy on prudential aspects of international insurance matters, including representing the United States, as appropriate, in the International Association of Insurance Supervisors and assisting the Secretary in negotiating covered agreements;
- determine, in accordance with certain standards and processes prescribed by law, whether State insurance measures are preempted by covered agreements; and
- consult with States regarding insurance matters of national importance and prudential insurance matters of international importance.
In addition, before the Secretary can make a determination on whether to seek the appointment of the Federal Deposit Insurance Corporation (FDIC) as receiver of an insurance company under Title II of the Dodd-Frank Act, the Secretary must first receive a written recommendation from the FIO Director and the Federal Reserve.