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Adds a State insurance commissioner as a (voting) member of the Financial Stability Oversight Council (FSOC), sets how that commissioner is nominated and how vacancies are handled, and makes technical edits to the Financial Stability Act of 2010. The President must request candidate names from the National Association of Insurance Commissioners (NAIC) but may appoint someone not on that list; the bill also creates special interim and vacancy rules that keep a temporary nonvoting State insurance commissioner on FSOC until a confirmed voting member is in place.
Amends Section 111 of the Financial Stability Act of 2010 (12 U.S.C. 5321) by changing the list of members in subsection (b)(1): redesignates the existing subparagraph (J) as subparagraph (K).
Inserts a new subparagraph (J) into subsection (b)(1) to add a State insurance commissioner as a member to be appointed by the President with the advice and consent of the Senate, as described in new paragraph (4).
Adds a new paragraph (4) (titled 'State insurance commissioner') requiring the President to request a list of recommended candidates from the States through the National Association of Insurance Commissioners (NAIC) before making any appointment under paragraph (1)(J).
Authorizes the President to appoint a member under paragraph (1)(J) who does not appear on the list provided by the NAIC.
If the National Association of Insurance Commissioners fails to submit the requested list within 15 business days after the date of the President's request, the President may appoint a member under paragraph (1)(J) without considering the views of the NAIC.
Primary effects are institutional and procedural rather than programmatic or fiscal. State insurance commissioners and state insurance regulators will gain a formal role in FSOC governance, raising the visibility of state insurance regulation in federal financial stability policymaking. The NAIC gains a formal advisory role (submission of candidate lists) but the President retains discretion to appoint outside that list; the 15-business-day response window limits how long the NAIC can delay the appointment process. Exempting the seat from the Federal Vacancies Reform Act and providing an interim nonvoting member reduces the chance of an extended vacancy but also alters the usual federal rules for acting service, which could raise separation-of-powers or federalism questions in some circumstances. Financial firms and insurers may be indirectly affected by a change in FSOC membership because FSOC’s composition can influence monitoring and recommendations relating to systemic risk in insurance. The bill appears to have minimal direct fiscal impact and does not create new funded programs, regulatory requirements for private parties, or new deadlines for agencies beyond the appointment and vacancy procedures.
Adds a new paragraph (8) to subsection (a) defining the term "Council" as the Financial Stability Oversight Council established in section 111.
Temporarily preserves the continued application of 12 U.S.C. 5321(b)(2)(C) despite the amendments made by this Act: during the period from enactment until the State insurance commissioner is appointed and confirmed pursuant to section 111(b)(1), section 111(b)(2)(C) shall continue to apply.
Strikes subparagraph (C) of subsection (b)(2) (removing the State insurance commissioner as a nonvoting member) and redesignates former subparagraphs (D) and (E) as (C) and (D), respectively.
Conforming amendment changing the cross-reference in subsection (c)(1) from 'subparagraphs (C) and (D) and (E)' to 'subparagraphs (C) and (D)', reflecting the removal and redesignation in subsection (b)(2).
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Referred to the House Committee on Financial Services.
Introduced May 13, 2025 by Barry D. Loudermilk · Last progress May 13, 2025
Referred to the House Committee on Financial Services.
Introduced in House