Repeal of Federal Insurance Office, PIA Top Priority, Introduced in HouseAugust 2, 2021
WASHINGTON – The National Association of Professional Insurance Agents (PIA) thanks Reps. Ben Cline (R-VA) and Tom Tiffany (R-WI) for introducing the Federal Insurance Office Abolishment Act. The bill was previously introduced in the 116th Congress.
“Created as part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Insurance Office (FIO) is an ongoing threat to our system of state-based insurance regulation,” said Jon Gentile, vice president of government relations for PIA.
In 2016, PIA became the first national insurance association to call for the repeal of the FIO. Throughout the last decade, the FIO has sought to expand its mandate by calling for federal regulation of mortgage insurance; for its inclusion in supervisory colleges, which are joint meetings of interested regulators and company officials; and to establish uniform national standards for state guaranty associations. In addition, it has sought to administer the National Association of Registered Agents and Brokers (NARAB). Each of these acts would be an overreach by the federal government.
More recently, the Biden administration issued an Executive Order giving the FIO new responsibilities to “assess climate-related issues or gaps in the supervision and regulation of insurers.” This is yet another example of improperly tasking the FIO with oversight of state-regulated insurers. If a climate assessment is warranted, it should be conducted by state insurance regulators.
“For over a hundred years, the state insurance regulatory system has worked well for insurance consumers and the industry. As long as the FIO continues to exist, it will remain a threat to state-based insurance regulation. It is past time to eliminate this superfluous federal bureaucracy.” Gentile said. “Inaction will allow this office to accrue more power over time and is tantamount to endorsing an increased federal role in insurance regulation. PIA will continue its efforts to protect the state-based regulatory system.”
PIA appreciates Reps. Cline and Tiffany taking this bold step to protect the state regulation of insurance. PIA will continue to build a base of support among lawmakers for repeal of the FIO. A Senate bill was previously introduced this Congress by Sen. Ted Cruz (R-TX).
Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes, and businesses. PIA’s web address is www.pianational.org.