Present and Proposed Limited Federal Jurisdiction Over Insurance Agents and Brokers

While states dominate the regulation of insurance intermediaries, such as agents and brokers, in recent years there have been several efforts resulting in express, though limited, federal jurisdiction. Section 15.05 of Chapter 15 of the New Appleman on Insurance Law Library Edition reviews various federal laws and Congressional proposals that affect, or one day, could affect insurance producers The most prominent federal act to do so is the Gramm-Leach-Bliley Act, which requires specified insurance intermediaries to establish internal procedures to protect private customer information and to disclose those policies to consumers. In addition to the Gramm-Leach-Bliley Act, Congress has asserted jurisdiction over insurance intermediaries in the area of telemarketing, “junk fax” restrictions, and anti-spamming. In addition, proposals have been made, but not yet enacted, to establish federal insurance intermediary licenses and charters, a national insurance information database, and standardized consumer protection rules, all of which would affect the business of insurance intermediaries.   Proposals have also been made to assert federal jurisdiction over surplus and excess lines insurance and reinsurance intermediaries.
To download a free copy of Section 15.05 of Chapter 15 of the New Appleman on Insurance Law Library Edition, simply click on the above link at the top of this blog to login to your Insurance Law Center account. If you don’t have an account set up yet, click on the ‘create an account’ link and follow the prompts.