A House of Representative committee’s approval of a measure designed to curb what some insurance observers regard as international regulatory overreach is drawing praise from much of the U.S. property/casualty insurance industry.

The House Financial Services Committee approved the Transparent Insurance Standards Act of 2016 — H.R. 5143 — which was approved on a party line vote Thursday of 34-25.

The bill holds that any international insurance standard agreed to by the Basel, Switzerland-based International Association of Insurance Supervisors could not be applied in the United States “until it is implemented through the required domestic process and provides Congress the opportunity to reject a bad agreement,” according to the website of the bill’s sponsor, Rep. Blaine Luetkemeyer, R-Mo. In addition, the measure would also require the U.S. Treasury Department and Federal Reserve “to work to ensure policyholder protection, increased transparency and recognition of the state-based model of insurance regulation,” according to the description.

The panel’s action drew a positive response from much of the property/casualty insurance industry.

The Property Casualty Insurers Association of America “applauds the House Financial Services Committee for passing this important legislation,” Nat Wienecke, PCI’s Washington-based senior vice president for federal government relations, said in a statement. The bill “provides clear direction by Congress to U.S. representatives involved in international insurance regulatory negotiations to protect and promote the U.S. state-based regulatory system,” he said.

“We encourage the House and Senate to finalize legislation supporting the U.S. state-based system and send it to the president’s desk this year,” he said.

“Insurance is a state-regulated industry in the U.S., and the last thing we need are ill-fitting international insurance standards created at the International Association of Insurance Supervisors brought back to the U.S. marketplace,” Jimi Grande, senior vice president of federal and political affairs in that National Association of Mutual Insurance Companies’ Washington office, said in a statement.

“Congress shouldn’t allow politics to delay acting on this important issue, and we strongly urge the House to move quickly to pass H.R. 5143,” said Mr. Grande.

“With many insurance issues now being discussed on a global level, it is vital that the U.S. has clear objectives and a consistent approach to participating in these discussions,” Charles Symington, senior vice president of external and government affairs at the Alexandria, Virginia-based Independent Insurance Agents & Brokers of America, said in a statement. “The Big ‘I’ is grateful for the House Financial Services Committee’s swift consideration of this legislation and hopes the full House will act soon.”