MP Barry Gardiner questioned the government on its part in the failure of Independent Insurance during an adjournment debate in the House of Commons on Wednesday (July 4).
Gardiner, the Labour MP for Brent North, questioned the Treasury about the Financial Services Authority's (FSA) role in regulating the collapsed insurer.
He also asked Economic Secretary to the Treasury Ruth Kelly about the role of Independent's auditors KPMG and actuaries Watson Wyatt.
Gardiner, who worked in finance in the City prior to going into politics, also tabled questions about the insurer last week.
He asked what discussions the Treasury had had with the FSA during the past year about the insurer's cash flow and rising profits.
He also queried what discussions the FSA had had with KPMG about its role as external auditors and its assessment of the adequacy of Independent's reserves.
Gardiner asked the Chancellor for a statement on the Serious Fraud Office's (SFO) investigation into the company and what investigations he planned to make to ensure that all claims had been properly entered into its accounting system.
He also asked whether the FSA had met with former Independent chief executive Michael Bright during the past 12 months.
Kelly said that it would be inappropriate to answer the questions while the SFO was conducting an investigation into the company.