House passes Posey-Sherman “Policyholder Protection Act”
WASHINGTON , D.C. (November 17, 2015) — The Policyholder Protection Act introduced by Congressman Bill Posey (R-FL) and Congressman Brad Sherman (D-CA) passed the House.
“The bipartisan passage of this legislation proves that there is still room for common sense legislation that protects consumers,” said Congressman Sherman. “It is my hope that the Senate will take up this legislation with similar success. It is unfair to policy holders at risk, because of the actions of some Wall Street firm. That is why the assets of an insurance company should be walled off from the risky practices of their affiliated financial institutions. The assets of an insurance company are needed to pay claims of their policyholders, and those dollars should not be jeopardized by complex bets, risk taking, or poor management elsewhere within a large financial firm. I want to thank Congressman Posey for his great work and leadership on this bill.”
The Policyholder Protection Act affirms that resources from an insurance company may not be used to bail out an affiliated financial institution from liquidation under Title II of Dodd-Frank – unless the state insurance commissioner consents. This bill clarifies Dodd-Frank to ensure that resources set aside to satisfy insurance policyholder claims cannot be used to satisfy non-insurance liabilities within a holding company system.
About Brad Sherman
Congressman Brad Sherman, born and raised in southern California, represents California’s San Fernando Valley, and has served in the U.S. House of Representatives since 1997. He is serving his ninth term in Congress, and currently resides in Sherman Oaks, CA.
Congressman Sherman is a senior member of the House Foreign Affairs Committee and serves as the senior Democrat on the Subcommittee on International Terrorism, Nonproliferation and Trade. He is also a senior member of the Financial Services Committee.