Illinois insurance head to lead Federal Insurance Office

WASHINGTON—The Obama administration has named Illinois Insurance Director Michael T. McRaith to head the new Federal Insurance Office.

Treasury Secretary Timothy Geithner announced the appointment during a meeting of the Financial Stability Oversight Council on Thursday. In his new position, Mr. McRaith will serve as a nonvoting member of that body.

The new office, which is part of the Treasury Department, was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

The office will advise federal authorities on insurance matters, prepare reports and analysis, and have some limited pre-emption power over state laws that affect international insurance arrangements.

The office also will oversee the federal government’s terrorism insurance backstop program.