FOR IMMEDIATE RELEASE

NAIC Testifies Before Congress on International Insurance Deal
Testimony highlights need for clarification

WASHINGTON (May 2, 2017) —President-Elect of the National Association of Insurance Commissioners (NAIC) and Tennessee Insurance Commissioner Julie Mix McPeak testified  before Congress today regarding disparate regulatory treatment some European Union (EU) jurisdictions are imposing on certain U.S. insurers doing business in the EU. In January, the EU, United States Trade Representative (USTR) and Treasury negotiated a covered agreement to address these issues. The agreement has not been signed.

"As the states are the primary regulators of the insurance sector and it will be our responsibility to implement the provisions of the agreement, our involvement and buy-in is essential to its success," McPeak testified. "We have confidence that through the bipartisan efforts of this Congress as well as the commitment of this administration we can resolve the ambiguities and ensure that the U.S. obtains the best deal possible for our constituents."

A covered agreement is a specific type of international agreement, defined by the Dodd-Frank Act, negotiated jointly by the U.S. Treasury's Federal Insurance Office  and USTR with foreign authorities. The hearing, Examining the United States-European Union Covered Agreement, was held by U.S. Senate Committee on Banking, Housing & Urban Affairs.

"The NAIC submitted to Treasury and USTR a list of provisions to be clarified before the United States moves forward with implementation of the Agreement," McPeak added. "We urge the administration to expeditiously provide the needed clarity of these provisions now rather than taking an imprudent leap of faith that differing interpretations will be 'worked out' at a later date."

About the NAIC

The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.

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