WASHINGTON—President Barack Obama signed into law Wednesday a comprehensive financial services regulatory reform measure that creates a Federal Insurance Office within the Treasury Department.

The Dodd-Frank Wall Street Reform and Consumer Protection Act also streamlines the collection of surplus lines insurance premium taxes and eases qualified risk managers’ access to the nonadmitted market. In addition, the new law designates a reinsurer’s state of domicile as its sole solvency regulator under most circumstances.

The new Federal Insurance Office will have a limited power to pre-empt state regulations in certain international insurance matters. It also will oversee the federal government’s terrorism insurance backstop program.