H.R. 4735: Business of Insurance Regulatory Reform Act of 2025

The Business of Insurance Regulatory Reform Act of 2025 is a proposed piece of legislation that seeks to clarify the powers of the Bureau of Consumer Financial Protection (BCFP) in relation to entities that are regulated by state insurance regulators. Below are the key components of the bill:

Short Title

The bill may be referred to as the Business of Insurance Regulatory Reform Act of 2025.

Clarification of Authority

The bill proposes an amendment to Section 1027(f) of the Consumer Financial Protection Act of 2010. The main changes include:

• Exceptions to Authority:
  • The BCFP would not enforce certain provisions of the Consumer Financial Protection Act against individuals or entities that are regulated by state insurance regulators when they are engaging in activities related to the business of insurance.
• Limitation on Enforcement:
  • If an entity regulated by a state insurance regulator is providing consumer financial products or services, the BCFP's authority to enforce consumer laws against them would be limited, specifically when they are operating in the insurance sector.
• Rule of Construction:
  • The bill states that enforcement provisions should be interpreted in a way that favors the authority of state insurance regulators when dealing with entities under their jurisdiction.

Overall, this legislation aims to enhance the authority of state insurance regulators by limiting the BCFP's oversight of certain activities related to the insurance business, specifically when those entities are already operating under state regulations.

Relevant Companies

None found