Senate Republicans Introduce Bill to Curb CFPB Authority

Senate Republicans introduced legislation to limit the Consumer Financial Protection Bureau's ("CFPB") jurisdiction over "persons regulated by a state insurance regulator." 

The "Business of Insurance Regulatory Reform Act," introduced by Senator Tim Scott et. al. would amend Dodd-Frank Section 1027(f) ("Limitations on authorities of the Bureau") to make explicit that regulation of the business of insurance remains under the exclusive authority of state insurance regulators. According to the sponsors, the bill would reaffirm Congress's intent under the Dodd-Frank Act to exclude insurance from the CFPB's jurisdiction over "financial products or services." 

The bill would also narrow the CFPB's authority in cases where a state-regulated insurance entity is subject to an enumerated consumer law. To reinforce this limitation, the bill adds a new rule of construction mandating that enforcement of Dodd-Frank Title X ("CFPB") be broadly construed in favor of the authority of state insurance regulators.