This proposal would limit the federal Consumer Financial Protection Bureau (CFPB) from policing people and companies that are already overseen by a state insurance regulator when they are doing insurance work. It says the CFPB may not enforce its law against them for activities that are part of the “business of insurance,” and that any CFPB power under other consumer laws should be read narrowly in those cases. It also tells courts and agencies to read enforcement rules in a way that favors state insurance regulators taking the lead over the CFPB for these entities.

Key points

• Who is affected: Insurance companies and agents regulated by state insurance departments; consumers who buy insurance and related financial products.
• What changes: The CFPB would step back when the activity is insurance-related, and state insurance regulators would have clearer primary authority. Any CFPB power in this area should be read narrowly, and state authority should be read broadly.
• When: Would take effect if enacted into law; the text does not specify a special start date.