November 6, 2018 

The Honorable Kevin Brady 

Chairman 

Committee on Ways and Means 

U.S. House of Representatives 

Washington, DC 20515 

Dear Chairman Brady: 

The Federal Insurance Office Act of2010 (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance . . A covered agreement purstiant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 

addressing three areas of prudential insurance supervision: group supervision, reinsurance, and 
exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

Christopher L. Jackson 

Assistant U.S. Trade Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Maxine Waters 

The Honorable Richard E. Neal 

The Honorable Mike Crapo 

The Honorable Sherrod Brown 

The Honorable Orrin G. Hatch 

The Honorable Ron Wyden 
November 6, 2018 

The Honorable Shenod Brown 

Ranking Member 

Committee on Banking, Housing, 

and Urban Affairs 

United States Senate 

Washington, DC 20510 

Dear Senator Brown: 

The Federal Insurance Office Act of 20 IO (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will s·eek to negotiate a covered agreement with the UK 
addressing three areas of prudential insurance supervision: group supervision, reinsurance, and 

exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

Christopher L. Jackson 

Assistant U.S. Trade Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Maxine Waters 

The Honorable Kevin Brady 

The Honorable Richard E. Neal 

The Honorable Mike Crapo 

The Honorable Orrin G. Hatch 

The Honorable Ron Wyden
November 6, 2018 

The Honorable Mike Crapo 

Chairman 

Committee on Banking, Housing, 

and Urban Affairs 

United States Senate 

Washington, DC 20510 

Dear Chairman Crapo: 

The Federal Insurance Office Act of 20 IO (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the busin~ss of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating· negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 
addressing three areas of prudential insurance supervision: group supervision, reinsurance, and 

exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

~""" --'<,__ ______ .J 

Christopher L. Jackson 

Assistant U.S. Trade Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Maxine Waters 

The Honorable Kevin Brady 

The Honorable Richard E. Neal 

The Honorable Sherrod Brown 

The Honorable Orrin G. Hatch 

The Honorable Ron Wyden
November 6, 2018 

The Honorable Orrin Hatch 

Chairman 

Committee Finance 

United States Senate 

Washington, DC 20510 

Dear Chairman Hatch: 

The Federal Insurance Office Act of 2010 (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must:. 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 

addressing tlll'ee areas of prudential insurance supervision: group supervision, reinsurance, and 
exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. · 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

Cluistopher L. Jackson 

Assistant U.S. Trade Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Maxine Waters 

The Honorable Kevin Brady 

The Honorable Richard E. Neal 

The Honorable Mike Crapo 

The Honorable Sherrod Brown 

The Honorable Ron Wyden
November 6, 2018 

The Honorable Jeb Hensarling 

Chairman 

Committee on Financial Services 

U.S. House of Representatives 

Washington, DC 20515 

Dear Chairman Hensarling: 

The Federal Insurance Office Act of 2010 (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as 'ijell as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 

addressing three areas of prudential insurance supervision: group supervision, reinsurance, and 
exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

Christopher L. Jackson 

Assistant U.S. Tracie Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Maxine Waters 

The Honorable Kevin Brady 

The Honorable Richard E. Neal 

The Honorable Mike Crapo 

The Honorable Sherrod Brown 

The Honorable Orrin G. Hatch 

The Honorable Ron Wyden
November 6, 2018 

The Honorable Richard E. Neal 

Ranking Member 

Committee on Ways and Means 

U.S. House of Representatives 

Washington, DC 20515 

Dear Representative Neal: 

The Federal Insurance Office Act of2010 (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the Hot1se of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 

addressing three areas ofprudential insurance supervision: group supervision, reinsurance, and 
exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

k--

Christopher L. Jackson 

Assistant U.S. Trade Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Maxine Waters 

The Honorable Kevin Brady 

The Honorable Mike Crapo 

The Honorable Sherrod Brown 

The Honorable Orrin G. Hatch 

The Honorable Ron Wyden
November 6, 2018 

The Honorable Maxine Waters 

Ranking Member 

Committee on Financial Services 

U.S. House of Representatives 

Washington, DC 20515 

Dear Representative Waters: 

The Federal Insurance Office Act of2010 (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

· We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsuranGe companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 

addressing three areas of prudential insurance supervision: group supervision, reinsurance, and 
exchange of information between supervisory authorities. Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

Christopher L. Jackson 

Assistant U.S. Trade Represe.ntative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Kevin Brady 

The Honorable Richard E. Neal 

The Honorable Mike Crapo 

The Honorable Sherrod Brown 

The Honorable Orrin G. Hatch 

The Honorable Ron Wyden
November 6, 2018 

The Honorable Ron Wyden 

Ranking Member 

Committee Finance 

United States Senate 

Washington, DC 20510 

Dear Senator Wyden: 

The Federal Insurance Office Act of2010 (FIO Act), authorizes the Secretary of the Treasury 

and the United States Trade Representative (USTR) to negotiate and enter into covered 

agreements jointly on behalf of the United States. Covered agreements are written bilateral or 

multilateral agreements regarding prudential measures with respect to the business of insurance 

or reinsurance. A covered agreement pursuant to FIO Act authority must: 

relate[] to the recognition of prudential measures with respect to the business 

of insurance or reinsurance that achieves a level of protection for insurance or 

reinsurance consumers that is substantially equivalent to the level of protection 

achieved under State insurance or reinsurance regulation. 

The FIO Act also provides that the U.S. Department of the Treasury (Treasury) and USTR shall 

jointly consult with the Financial Services and Ways and Means Committees of the House of 

· Representatives, and the Banking, Housing, and Urban Affairs and Finance Committees of the 

Senate before initiating negotiations to enter into a covered agreement, during such 

negotiations, and before entering into any such agreement. 

We write to notify you of our intent, as discussed in recent meetings held pursuant to the FIO 

Act, to initiate negotiations to enter into a covered agreement with the United Kingdom (UK). 

The UK, as a Member State of the European Union (EU), is currently subject to the covered 

agreement between the United States and the EU (the U.S.-EU Covered Agreement). The UK is 

preparing to withdraw from the EU on March 29, 2019. The UK is the world's fourth largest 

insurance market, and many U.S. insurers and reinsurers do business in the UK. 

In order to ensure the continued benefits of the U.S.-EU Covered Agreement to U.S. insurance 

and reinsurance companies operating in the UK, as well as maintain continuity and market 

stability, Treasury and USTR will seek to negotiate a covered agreement with the UK 

addressing three areas of prudential insurance supervision: group supervision, reinsurance, and 
exchange of information between supervisory authorities: Any such agreement will affirm the 

U.S. system of insurance regulation, including the role of state insurance regulators as the 

primary supervisors of the business of insurance in the United States. 

During this covered agreement process, we intend to engage in a robust consultation with 

Congress, state regulators, and stakeholders. 

Sincerely, 

Brad Bailey 

Acting Assistant Secretary 

Office of Legislative Affairs 

Department of the Treasury 

• =-=~-

Christopher L. Jackson 

Assistant U.S. Trade Representative 

for Congressional Affairs 

Office of the U.S. Trade Representative 

Identical letter sent to: 

The Honorable Jeb Hensarling 

The Honorable Maxine Waters 

The Honorable Kevin Brady 

The Honorable Richard E. Neal 

The Honorable Mike Crapo 

The Honorable Sherrod Brown 

The Honorable Orrin Hatch