Capital rules for the insurance industry should be evaluated differently than those for banks because of types of products that insurers develop and underwrite, Federal Reserve Board Governor Daniel Tarullo said at a Senate banking committee hearing. Federal regulators, however, are constrained by a Dodd-Frank Act provision that calls for minimum risk-based and leverage capital requirements for nonbank firms identified as systemically important. "With that constraint, we are working as much as we can in tailoring risk-weighting for insurance products but are a little confined here," Tarullo said.

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