Number: RS20098
Title: INSURANCE PROVISIONS OF FINANCIAL SERVICES MODERNIZATION BILLS IN THE 106TH CONGRESS
Authors: M. Maureen Murphy, American Law Division 
Abstract: With banks increasingly dependent on non-deposit products, including insurance sales, for profitability, the federal banking regulators have authorized, and the courts have upheld, expanded insurance powers. Current financial services modernization proposals would continue state regulation of the insurance business and would generally approve expanded insurance powers for banks. In the 105th Congress, one of the chief impediments to enacting financial services modernization legislation was resolving the bank sale of insurance issue. In the opening months of the 106th Congress, House Banking Committee Chairman Leach's H.R. 10, House Banking Committee Minority Ranking Member LaFalce's H.R. 665, and Senate Banking Committee Chairman Gramm's committee staff draft legislation take distinct approaches to balancing state authority over insurance with preservation of federally authorized insurance powers for banks, bank subsidiaries, and bank and financial holding company affiliates.
Pages: 6
Date: Updated July 13, 1999