AIA STATEMENT ON CONFERENCE COMMITTEE PASSAGE OF THE FINANICAL REGULATORY REFORM BILL
WASHINGTON, D.C., June 25, 2010 – Leigh Ann Pusey, president and CEO of the American Insurance Association (AIA), today issued the following statement regarding the passage of the “Dodd/Frank” financial services regulatory reform bill by the House/Senate Conference Committee.
Ms. Pusey’s statement follows:
“The American Insurance Association supports efforts to reform and modernize financial services regulation.
“While many of the final details will not be available until the weekend, to the extent property and casualty insurers have been considered in these reforms, in most instances the legislation appropriately recognizes that our industry does not pose systemic risk. The existing state-based resolution mechanism remains in place and policyholders remain protected by the state guaranty fund system.
“AIA is encouraged that the legislation establishes a federal office of insurance and believes that this provision offers a substantial contribution toward broadening and deepening our nation’s understanding of the critical role of insurance in our financial system.
“With regard to the 'pay-for' assessments provision that was passed early this morning, AIA remains opposed to any legislation that subjects our industry to pre-funding obligations.
“Given the importance of these reforms, AIA will remain active to ensure that the unique nature of insurance is preserved through the bill’s final passage and into its implementation.”