Question

Which of the following is an authority given to the Federal Insurance Office created by the Dodd-Frank Act?

1) Regulating insurance companies
2) Enforcing insurance laws
3) Monitoring insurance markets
4) Providing insurance coverage

Answer 1

The Federal Insurance Office's authority is to monitor insurance markets, rather than to regulate insurance companies directly or enforce insurance laws.

Step-by-step explanation:

The authority given to the Federal Insurance Office created by the Dodd-Frank Act is monitoring insurance markets. Unlike state regulators who actively regulate the insurance industry to keep prices low and ensure widespread coverage, the Federal Insurance Office does not directly regulate insurance companies nor enforce insurance laws. Instead, it has an oversight role, where it monitors the health and stability of the insurance industry, keeping a lookout for issues that could affect the broader financial system.