Treasury Sec. Bessent Testifies at Financial Services Committee
U.S. Treasury Secretary Scott Bessent made his first appearance in front of the House Financial Services Committee on May 8, 2025. He reiterated the points he made last month in conjunction with the International Monetary Fund and World Bank Spring Meetings regarding increased U.S. involvement and leadership in international institutions to “restore fairness to the international economic system.” Rep. Kim (R-CA) raised concerns about the Financial Stability Oversight Council’s (FSOC) Analytic Framework for Financial Stability Risks and Guidance on Nonbank Financial Company Determinations, stating that it “overlooks the importance of prioritizing an activities-based standard and cost-benefit analysis.” When asked whether FSOC would reassess the 2023 guidance to more closely align it with the 2019 process, Secretary Bessent said it was on the agenda.
Staff Contact - Sean McKennaInsurance Commissioners Emphasize Mitigation at NALC Conference
Insurance Commissioners Chaney (Mississippi) and Fowler (Alabama), along with Directors Deiter (South Dakota), Dunning (Nebraska), and Wise (South Carolina), spoke to the National Alliance of Life Companies last week. Chaney, Fowler, and Wise focused on homeowner mitigation efforts, with Fowler emphasizing the bipartisan support (having traveled to California to support its efforts).
Wise also discussed key solvency workstreams at the NAIC. He said private equity is neither good nor bad—just different—and the regulatory system was not set up to account for changes brought by private equity involvement in the insurance industry (he also remarked that memories of 2008 affect how assets are viewed). He highlighted the NAIC’s goals for a governance process for RBC updates and the need for broader understanding of RBC.
Staff Contact - Sean McKennaNAIC Updates
In advance of its “DC fly-in” this week, the NAIC drafted several issue briefs on its 2025 federal priorities (many of which are updated drafts of prior briefs on ongoing priorities). The briefs include:
- The State Insurance Receivership Priority Act, emphasizing support for legislation to amend the Federal Priority Act to establish a two-year deadline for the federal government to file claims in insurer liquidations.
- Elimination of FIO, outlining the NAIC’s support to completely eliminate the Federal Insurance Office (FIO) as currently constructed, suggesting that FIO’s role is incompatible with the McCarran-Ferguson Act, undermines state regulators’ independence, and duplicates regulatory functions.
- FSOC Vote for Insurance Regulators, voicing support for insurance regulators to have a vote on the Financial Stability Oversight Council (FSOC).
- Protecting Insurance Consumer Privacy and Security, suggesting that any federal data privacy and security legislation should not undermine or preempt state insurance laws and regulations.
AI Activity
Last year, Colorado became the first state to enact broad legislation requiring developers and users of AI systems to take steps to prevent algorithmic discrimination (a 2024 Faegre Drinker client alert illustrates the bill’s requirements, which take effect on February 1, 2026). Legislative efforts to pare down these requirements failed, which means that the law will likely take effect in its original form.
Staff Contact - Sean McKennaState Privacy Updates
The California Privacy Protection Agency (CPPA) Board approved the revised draft regulations on automated decision-making technology, cybersecurity audits, and risk assessments on May 1, 2025, for a second round of public comments. Interested parties may submit comments through June 2, and the CPPA will discuss those comments during its next meeting on July 24.
The Maine legislature introduced a new comprehensive consumer privacy bill—the Maine Online Data Privacy Act (LD 1822). This bill applies to persons who conduct business in Maine or produce products or services targeted to residents of Maine and who during the preceding calendar year (1) controlled or processed the personal data of not less than 35,000 consumers, excluding personal data controlled or processed solely for the purpose of completing a payment transaction; or (2) controlled or processed the personal data of not less than 10,000 consumers and derived more than 20% of gross revenue from the sale of personal data. The bill exempts “licensees” under the Maine Insurance Code; data collected, processed, or sold in accordance with the Gramm-Leach-Bliley Act (GLBA); and protected health information regulated under HIPAA.
Staff Contact - Sean McKennaTexas GA Seeks New Executive Director
The Texas Life & Health Insurance Guaranty Association (TLHIGA) is accepting applications for the Executive Director position. Its current Executive Director, Bart Boles, will be retiring on December 31, 2026, after almost 40 years of service to the TLHIGA. This is a full-time employee position. The employment date and transition period for the successor will be established based on the experience and skill set of the selected individual.
Interested parties may contact TLHIGA General Counsel Dan Price at [email protected] or 512.312.7165 for additional information. The TLHIGA 2025 Executive Director Solicitation Package may also be downloaded from the Important Notices section on the homepage of the TLHIGA website. Applications from interested parties must be submitted to General Counsel Price on or before July 15, 2025.
Staff Contact - Sean McKenna