"Due to circumstances and occurrences such as 9/11, the sequence of natural disasters and the financial market crisis spreading to the insurance sector, the Insurance Information Act is essential in helping the federal government develop a comprehensive approach for the insurance industry. The bill would also promote greater competition between domestic and foreign insurers thereby promoting access to more affordable insurance," says Terry Fleming, member of RIMS board of directors and director of the division of risk management for Montgomery County, Maryland. "RIMS urges the House to pass this legislation and the U.S. Senate to take it up as soon as practical." 

H.R. 5840 would create a federal office of insurance information and establish, for the first-time, a repository for the collection and dissemination of information at the federal level within the U.S. Department of the Treasury. This data collection and advisory function would facilitate the federal government’s development of much needed expertise in insurance matters.  Additionally, the bill has clearly defined and strictly limited preemptive powers applicable only if state laws conflict with United States international trade agreements. This provision would provide certainty to non-U.S. insurers and permit both domestic and foreign insurers to compete on a level playing field, thus promoting a healthy market and access to affordable insurance. 

RIMS is working with key members of the Senate Committee on Banking, Housing, and Urban Affairs to move S. 929, the Nonadmitted and Reinsurance Reform Act, which streamlines the regulatory structure to make it easier to access insurance through the non-admitted or surplus lines market. Last year, the House unanimously passed its version of the surplus lines legislation, which incorporates the RIMS-approved definition of a “qualified risk manager.” RIMS urges the Senate to adopt the House language defining “qualified risk manager” into the legislation.  

"RIMS hopes that before Congress adjourns, it will also pass the surplus lines legislation, which is important to the property casualty insurance market," says Fleming. "The bill is critical to maintaining economic well being, especially in areas of the United States that have been hit hard by the recent spate of hurricanes."

For more information on RIMS legislative activities, visit www.RIMS.org/LegislativeAction.