McCarran-Ferguson Restoration Act

This bill eliminates the Federal Insurance Office of the Department of the Treasury and establishes a new United States Insurance Representative within the Treasury to handle international insurance matters and certain preemption determinations.

Sec. 2, Elimination of Federal Insurance Office: The Federal Insurance Office and the position of its Director are eliminated. This does not limit any existing Treasury Secretary authority over insurance matters.

Sec. 3, Establishment of United States Insurance Representative: Within one year, the Treasury Secretary must appoint a United States Insurance Representative and hire insurance experts. The Representative coordinates federal international insurance policy, represents the U.S. at the International Association of Insurance Supervisors, assists in negotiating covered agreements, determines if state insurance measures are preempted by such agreements, helps administer the Terrorism Insurance Program, consults with states, and advises the Secretary. The Representative's authority covers all insurance lines except health, long-term care (unless combined with life or annuity), and crop insurance. The section details a process for preempting state measures that treat non-U.S. insurers less favorably than U.S. insurers and are inconsistent with a covered agreement, including notice, consultation, and comment requirements. Preemption is limited to the covered agreement's subject matter and must achieve substantially equivalent consumer protection. The Representative must report annually to Congress on preemption actions and, within two years, on international insurance coordination and U.S. insurer competitiveness.

Sec. 4, Related Amendments to Elimination of Federal Insurance Office: The bill updates the Dodd-Frank Act and the Economic Growth, Regulatory Relief, and Consumer Protection Act to replace references to the Federal Insurance Office or its Director with the Secretary of the Treasury or the United States Insurance Representative, as appropriate.

Sec. 5, Financial Stability Oversight Council Membership: The bill adds a State insurance commissioner, appointed by the President with Senate advice and consent, as a voting member of the Financial Stability Oversight Council. The President must request candidate recommendations from states via the National Association of Insurance Commissioners, but is not bound by them. The commissioner serves a 4-year term. The United States Insurance Representative replaces the eliminated Federal Insurance Office as a nonvoting member. The bill also provides for an acting commissioner during a vacancy and allows a commissioner to continue serving up to 18 months after term end if a successor is not confirmed.