[Federal Register Volume 63, Number 53 (Thursday, March 19, 1998)]
[Rules and Regulations]
[Pages 13337-13338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7065]


=======================================================================
-----------------------------------------------------------------------

UNITED STATES INFORMATION AGENCY

22 CFR Part 514


Exchange Visitor Program, Insurance Coverage

AGENCY: United States Information Agency.

ACTION: Notice to sponsors of exchange visitor programs.

-----------------------------------------------------------------------

SUMMARY: In March 1993, the United States Information Agency 
(``Agency'') published a comprehensive set of final rules governing the 
exchange visitor program established under the authority of the Mutual 
Educational and Cultural Exchange Act of 1961 (22 CFR Part 514.) 
Section 514.14 establishes requirements regarding health insurance 
coverage on exchange visitors who come to the United States on the J 
visa. Those requirements merely establish criteria for insurance 
coverage on exchange

[[Page 13338]]

visitors, and they in no way purport to invalidate, impair or supersede 
State laws regulating the insurance industry.

DATES: This Notice to Sponsors is effective March 19, 1998.

ADDRESSES: United States Information Agency, Office of the General 
Counsel, Rulemaking 115, 301 Fourth Street, SW, Room 700, Washington, 
DC 20547-0001.

FOR FURTHER INFORMATION CONTACT: William G. Ohlhausen, Assistant 
General Counsel, United States Information Agency, 301 Fourth Street, 
S.W., Washington, DC 20547; telephone (202) 619-6972.

SUPPLEMENTARY INFORMATION: The final rules adopted by the Agency in 
March 1993 include a rule requiring that exchange visitors entering the 
United States on the J visa be covered by health insurance providing 
certain minimum coverage levels and that the insurance be underwritten 
by insurance corporations meeting certain nationally or internationally 
recognized financial ratings. 22 CFR 514.14. Federal, State or local 
government agencies, State colleges and universities, public community 
colleges, and, with Agency permission, non-governmental sponsors, may 
self-insure. 22 CFR 514.14 (c) and (d).
    It has long been established by statute that the business of 
insurance, and every person engaged therein, is subject to the laws of 
the State or States in which such business is conducted. Federal law 
makes it clear that no Act of Congress shall be construed to 
invalidate, impair or supersede any State law regulating or taxing the 
business of insurance. [15 U.S.C. 1012 (known as the ``McCarran-
Ferguson Act of 1948''] That law allows an exception only with respect 
to the Sherman and Clayton Antitrust Acts and the Federal Trade 
Commission Act, and then only to the extent that the insurance business 
is not regulated by State law.
    The Agency's regulation set forth at 22 CFR 514.14 does not purport 
to regulate the business of insurance, either in the United States or 
in foreign countries. It merely establishes mandatory minimum levels of 
coverage on health insurance policies issued to exchange visitors and 
requires that insurance companies underwriting such policies meet 
certain minimum financial ratings set by recognized insurance company 
rating services.
    It has come to the Agency's attention that there have been 
instances where foreign insurance companies and their agents have been 
conducting business in a State or States where they are 
``unauthorized,'' i.e., unlicensed or otherwise not meeting the 
requirements of State law. Merely complying with the Agency's insurance 
regulation does not permit foreign insurance companies to do business 
in a State if the conduct of the business is a violation of that 
State's laws.
    Nothing in the foregoing is meant to suggest that exchange visitors 
are prohibited from obtaining the required insurance coverage in their 
home country, as long as the policy of insurance and the company from 
which it is purchased meets USIA's requirements. However, foreign 
insurance companies and their agents conducting exchange visitor 
program health insurance business in the United States are required to 
be in compliance with the laws governing the business of insurance in 
the State or States where such business is being conducted.

List of Subjects in 22 CFR Part 514

    Cultural Exchange Programs.

    Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 1184, 1258; 22 U.S.C. 
1431-1442, 2451-2460; Reorganization Plan No. 2 of 1997, 3 CFR, 1977 
Comp., p. 200; E.O. 12048 of 3/27/78, 3 CFR, 1978 Comp., p. 168.

    Dated: March 13, 1998.
Les Jin,
General Counsel.
[FR Doc. 98-7065 Filed 3-18-98; 8:45 am]
BILLING CODE 8230-01-M