When the National Council of Insurance Legislators (“NCOIL”) holds its Annual Meeting in Oklahoma City later this week, it will consider a proposed resolution entitled the “Resolution Asserting McCarran-Ferguson Reverse Preemption over the Supervision of Insurance Companies by the Federal Reserve Board and its Examiners” (“Proposed Resolution”). The Proposed Resolution is in response to concerns that the Federal Reserve may be subjecting carriers to the kind of regulation that is reserved for state insurance regulators under the McCarran-Ferguson Act. The Proposed Resolution encourages Congress to provide oversight, perhaps including legislation, to ensure that the Federal Reserve Board’s supervisory activities concerning insurance companies do not impede the province of state insurance regulators. The Proposed Resolution is the latest in a growing chorus of expressions from the industry about potential overreach by the Federal Reserve Board.
We will continue to monitor and provide updates on developments relating to the Proposed Resolution.