McCarran-Ferguson Restoration Act
Summary
The McCarran-Ferguson Restoration Act aims to eliminate the Federal Insurance Office (FIO) within the Department of the Treasury and establish a United States Insurance Representative. This representative would coordinate federal policy on international insurance matters and assist the Secretary of the Treasury in various insurance-related duties. The bill also addresses the preemption of state insurance measures under certain conditions.
Expected Effects
The act would shift responsibilities related to federal insurance policy from the FIO to a newly created United States Insurance Representative. This change could streamline international insurance negotiations and oversight. It may also alter the balance of power between federal and state regulation of insurance.
Potential Benefits
- Streamlined federal policy coordination on international insurance matters.
- Enhanced representation of the U.S. in international insurance forums.
- Clarified process for determining preemption of state insurance measures, promoting consistency.
- Continued support for the Terrorism Insurance Program.
- Potential for more efficient use of resources within the Department of the Treasury.
Most Benefited Areas:
Potential Disadvantages
- Potential disruption during the transition from the FIO to the new representative.
- Possible concerns about the scope of federal preemption of state insurance regulations.
- Risk of reduced focus on domestic insurance issues with a focus on international matters.
- Uncertainty regarding the effectiveness of the new structure compared to the existing FIO.
- Potential for increased influence of the Secretary of the Treasury over insurance matters.
Constitutional Alignment
The Act's elimination of the FIO and creation of a new representative fall under Congress's power to organize the executive branch (Article I, Section 8). The Commerce Clause (Article I, Section 8, Clause 3) grants Congress the power to regulate commerce with foreign nations and among the several states, which could justify federal involvement in international insurance matters and the preemption of state laws that conflict with covered agreements. The Tenth Amendment reserves powers not delegated to the federal government to the states, raising potential concerns about the extent of federal preemption of state insurance measures.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).