OFAC FAQ #61 · Compliance for the Insurance Industry
State insurance statutes regulate an insurer's ability to withhold claim payments, cancel policies, or decline to enter into policies. In some cases, insurers must commit an ostensible violation of state insurance regulations to comply with OFAC regulations. Do OFAC regulations preempt state insurance regulations in this context?
OFAC's answer
Yes. OFAC's regulations under the Trading with the Enemy Act (TWEA) and the International Emergency Economic Powers Act (IEEPA) are based on presidential declarations of national emergency and preempt state insurance regulations. For more information on who must comply with OFAC sanctions, see [FAQ 11](https://ofac.treasury.gov/faqs/11). Date Updated: November 13, 2024