The insurance business is effectively regulated at the state level, protecting consumers by taking into account local market conditions that impact the business. Laws that prevent federal regulations from straying into state-regulated insurance matters are important to avoid consumer confusion and prevent federal rules that could overlap or contradict state regulations. NAIFA supports legislation introduced by former NAIFA member Senator Tim Scott (R-SC) and Representative Bryan Steil (R-WI) that would amend the Consumer Financial Protection Act of 2010 to exempt the insurance business from regulations created by the Bureau of Consumer Financial Protection (CFPB).

NAIFA, along with several coalition partners, sent a letter to Senator Scott and Representative Steil supporting their legislation and thanking them for their efforts. While the Dodd-Frank Act provides an insurance exemption to CFPB regulations, the proposed legislation would better define the broad scope of the insurance exemption and limits to the CFPB's regulatory reach. NAIFA is among the supporters of the bill that Senator Scott acknowledged in the Senate Banking, Housing & Urban Affairs press release on the legislation.