The Transparent Insurance Standards Act of 2016 (H.R. 5143) passed the House 239-170 on December 7, shortly before the House adjourned for the year. Unfortunately, the Senate recessed before acting on the bill.

H.R. 5143 seeks to increase transparency and cooperation in international negotiations and to ensure that state insurance regulation is afforded appropriate deference in any federal or international decision-making process. The proposed legislation enhances Congress's oversight of international deliberations relating to insurance standards by requiring the U.S. Treasury Department and Federal Reserve to consult with Congress and state insurance regulators represented by the National Association of Insurance Commissioners (NAIC) before approving any international insurance standards.

The bill sets negotiating objectives for U.S. negotiators regarding international insurance standards to ensure that the U.S. doesn't enter into an agreement that would disrupt the domestic insurance industry. It provides that if a proposed international standard includes a capital requirement, it would have to be consistent with federal and state requirements. The bill's provisions couldn't be interpreted to preempt a state law.

H.R. 5143 also provides that the public has the ability to comment, and state regulators would have to be consulted, on agreements that could affect U.S. insurers. The bill mandates a separate public comment period before imposing the standard on the companies it supervises. Covered agreements couldn't provide Treasury or the Federal Insurance Office (FIO) with general authority to regulate the insurance industry. Separately, PIA has proposed the abolition of the FIO.