Sponsors (2)
The bill increases and clarifies state insurance regulators' role and expertise in FSOC governance (and preserves short‑term continuity), but does so in ways that raise politicization, confirmation delays, transitional uncertainty, and legal risks for regulators and firms.
State insurance commissioners (state governments) would gain a permanent, statutory seat on the Financial Stability Oversight Council (FSOC), giving state regulators direct, formal input into systemic financial stability decisions.
The President would be required to request candidate lists recommended by the National Association of Insurance Commissioners (NAIC), increasing the likelihood that FSOC appointees have insurance expertise and industry legitimacy.
During vacancies or transitions, the bill preserves continuity by retaining existing nonvoting seat rules and allowing an interim designate, reducing immediate governance gaps and short-term uncertainty for regulators and markets.
State governments and taxpayers could face greater politicization and confirmation delays because the bill adds a new Senate‑confirmed seat to FSOC, making appointments slower and more political.
Altering or removing the existing nonvoting state insurance commissioner seat risks reducing formal state representation and diminishing insurance-sector expertise on FSOC, potentially weakening oversight of insurer-related systemic risks.
Allowing the President to appoint candidates who are not on the NAIC‑recommended list could undermine nominee legitimacy and reduce the likelihood that appointees have the specialized insurance regulatory background stakeholders expect.
Based on analysis of 5 sections of legislative text.
Adds a State insurance commissioner as a voting member of FSOC, sets NAIC consultation and special vacancy rules, and makes technical edits to the Financial Stability Act.
Adds a State insurance commissioner as a permanent voting member of the Financial Stability Oversight Council (FSOC), creates a formal consultation role for the National Association of Insurance Commissioners (NAIC) in the President’s appointment process, and establishes special interim and vacancy rules for that seat that bypass the Federal Vacancy Reform Act. The bill also removes the State insurance commissioner from the list of nonvoting FSOC designees during the transition, preserves the current nonvoting arrangement until a presidentially appointed and Senate‑confirmed State insurance commissioner serves under the new process, and makes several technical and clarifying edits to the Financial Stability Act of 2010 (including a replacement of one subsection’s text).
Introduced May 13, 2025 by Barry D. Loudermilk · Last progress May 13, 2025