‘McCarran-Ferguson Restoration Act’ Reaffirms State-Based Insurance Regulation
The National Association of Insurance Commissioners (NAIC) welcomes U.S. Rep. Troy Downing’s (R-MT-02) introduction today of the McCarran-Ferguson Restoration Act, which reaffirms the states’ longstanding role as the primary insurance regulators in the United States.
The legislation abolishes the Federal Insurance Office (FIO) at the U.S. Department of the Treasury, which was established in 2010. To retain expertise at the department for certain functions, including representing Treasury internationally and assisting in administering the Terrorism Risk Insurance Act (TRIA), the bill creates the position of U.S. Insurance Representative, which the Treasury Secretary would appoint.
“State insurance regulators strongly support Rep. Troy Downing’s McCarran-Ferguson Restoration Act because it restores the proper balance between the states and the federal government,” said NAIC President and Virginia Insurance Commissioner Scott A. White. “Insurance regulation has always been, and should always remain, a state responsibility. This legislation eliminates a federal office that conflicted with that framework, while preserving a focused, non-regulatory role for Treasury to engage internationally and defend the U.S. sector and system of state-based supervision. It reinforces regulatory clarity and respects the model that has successfully protected policyholders for more than a century and a half.”
The act also grants voting status to the state-based system’s representative on the Financial Stability Oversight Council (FSOC), which would strengthen FSOC’s response to financial risks. Currently, state insurance regulators are the only primary financial regulators without a vote on FSOC.
In 2025, the NAIC released a video honoring the 80th anniversary of the McCarran-Ferguson Act, which upheld the state-based system of insurance regulation. In the video, NAIC Members describe how the system empowers consumer protection and enables tailored solutions.
Background
Text of the McCarran-Ferguson Restoration Act
About the National Association of Insurance Commissioners
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.