State insurance regulators have long been troubled by the lack of transparency with the Financial Stability Oversight Council's (FSOC) operations, process, and reasoning for its nonbank designation decisions. FSOC's opaque process and failure to provide regulators and companies sufficient clarity on the specific activities that lead to a designation undermine its fundamental mission to mitigate risks to the financial system. Without this information, regulators cannot fully understand FSOC's concerns regarding the nature of the risks the firm poses or take appropriate action to reduce such risks. The goal of FSOC should not be simply to capture certain large firms and subject them to additional regulation, but rather to take meaningful and appropriate steps to mitigate the likelihood that failure of those firms jeopardizes the stability of the U.S. financial system.