FIO authority
Question: describe restrictions on the authority of the FIO
==> cannot preempt state regulation of:
- rates
- UW
- coverage requirements
- sales practices
- capital requirements
==> EXCEPT if such requirements result in less favorable treatment of a non-U.S. insurer versus a U.S. insurer
(preemption of state law requires a rigorous process)
.
.
.
Just to clarify: "such requirements" here refers to the requirements imposed by the state, rather than by FIO, correct? So FIO's authority in this case is intended to create a level-playing field for international insurers? (This seems more reasonable than the alternative, where FIO is only granted authority if it favors domestic insurers)
Comments
That is my understanding: "Such requirements" refers to state requirements for the reason you gave.
Note that questions from 2016 and prior that are listed in the Baribeau BattleTable are very likely outdated. (I just went back to make this more clear.) A reading that covered Dodd-Frank and the FIO in much more detail was removed from the syllabus for 2017 but other readings still do cover that topic. This makes is hard to know exactly which old exam questions are relevant which are not.
It's funny that when I reread the answer I provided, I had the same query you did. When I checked the examiner's report, I see that I had used their wording, so that didn't help. When I tried to go to the source text, I remembered that this was from a reading no longer on the syllabus.
The upshot is that this is a detail that might not be relevant anymore, but I couldn't be 100% certain so I didn't remove it entirely.