Title V of the Dodd-Frank Act authorizes the Secretary of the Treasury and the United States Trade Representative to jointly negotiate a "covered agreement" on behalf of the United States with one or more foreign governments, authorities, or regulatory entities.
A covered agreement is an international agreement that relates to the recognition of prudential measures with respect to the business of insurance or reinsurance that achieves a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under state insurance or reinsurance regulation.
Title V of the Dodd-Frank Act tasks the Director of the Federal Insurance Office with assisting the Secretary in negotiating covered agreements. Subject to certain procedures, including notice and opportunity for public comment, a state insurance measure shall be preempted by a covered agreement if the FIO Director determines that it results in less favorable treatment of a non-United States insurer domiciled in a foreign jurisdiction that is subject to a covered agreement than a United States insurer domiciled, licensed, or otherwise admitted in that state, and is inconsistent with the covered agreement.
In 2017, the United States entered into the first ever covered agreement—with the European Union.
In 2018, the United States entered into a covered agreement with the United Kingdom.
Links
U.S.-EU Covered Agreement (entered into force on April 4, 2018)
U.S.-UK Covered Agreement (entered into force on December 31, 2020)