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II
116TH CONGRESS
2D SESSION
S. 4325
To amend the Consumer Financial Protection Act of 2010 to clarify the
authority of the Bureau of Consumer Financial Protection with respect
to persons regulated by a State insurance regulator, and for other pur-
poses.
IN THE SENATE OF THE UNITED STATES
JULY 27, 2020
Mr. SCOTT of South Carolina (for himself and Mr. MANCHIN) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
A BILL
To amend the Consumer Financial Protection Act of 2010
to clarify the authority of the Bureau of Consumer Fi-
nancial Protection with respect to persons regulated by
a State insurance regulator, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Business of Insurance
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Regulatory Reform Act of 2020’’.
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•S 4325 IS
SEC. 2. CLARIFICATION TO THE AUTHORITY OF THE BU-
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REAU WITH RESPECT TO PERSONS REGU-
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LATED BY A STATE INSURANCE REGULATOR.
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Section 1027(f) of the Consumer Financial Protec-
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tion Act of 2010 (12 U.S.C. 5517(f)) is amended—
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(1) in paragraph (2)—
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(A) in the paragraph heading, by striking
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‘‘DESCRIPTION
OF
ACTIVITIES’’ and inserting
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‘‘EXCEPTIONS’’;
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(B) by striking ‘‘Paragraph (1)’’ and in-
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serting the following:
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‘‘(A) AUTHORITY.—Paragraph (1)’’; and
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(C) by inserting after subparagraph (A),
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as so designated, the following:
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‘‘(B) LIMITATION.—With respect to a per-
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son regulated by a State insurance regulator—
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‘‘(i) if that person is offering or pro-
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viding a consumer financial product or
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service, the Bureau may not enforce this
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title with respect to that person to the ex-
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tent that the person is engaged in the busi-
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ness of insurance; or
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‘‘(ii) if that person is subject to any
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enumerated consumer law or any law for
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which authorities are transferred under
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subtitle F or H, the authority of the Bu-
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•S 4325 IS
reau to enforce that law with respect to
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that person shall be narrowly construed to
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the extent that the person is engaged in
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the business of insurance.’’; and
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(2) by adding at the end the following:
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‘‘(4) RULE OF CONSTRUCTION.—The enforce-
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ment of this title shall be broadly construed in favor
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of the authority of a State insurance regulator with
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respect to a person regulated by the State insurance
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regulator.’’.
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