The National Association of Professional Insurance Agents (PIA) is pleased by the reintroduction on May 18 of one of our top priorities for 2023, S. 1694 the “Federal Insurance Office Abolishment Act” by Senator Ted Cruz (R-TX).
“The Federal Insurance Office Abolishment Act will protect the successful state insurance regulatory system by repealing the Federal Insurance Office (FIO), an unnecessary federal bureaucracy created in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank),” said PIA President Gerald Hemphill. “The proper place for the regulation of insurance is at the state level and the state regulation of insurance has served the insurance industry and consumers well for over one hundred years.”
PIA opposed the creation of the FIO from the outset. Many of the FIO’s duties are duplicative of other offices in the U.S. government and the work of state insurance commissioners. In recent years, its authority has continued to expand.
The bill will protect the successful state insurance regulatory system by repealing the FIO, an unnecessary federal bureaucracy created by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). State insurance departments and legislatures are the proper place for the regulation of insurance, and the state insurance regulatory system has served both consumers and the insurance industry well for over one hundred years.
The Biden administration issued a 2021 Executive Order (EO) asking the FIO to assess climate risks to carriers and identify possible sources of coverage disruption in geographic areas prone to climate change. After the EO was issued, the FIO contacted state insurance departments requesting zip-code-level data regarding property insurance coverages, liabilities, and losses and, through Treasury, announced its intent to conduct a climate-related financial risk data call, among other activities. The FIO is also using this directive to actively delve into other areas, like flood insurance.
“In November 2016, PIA became the first national insurance association to publicly call for the repeal of the FIO, and it remains a top priority,” said Hemphill. “The Federal Insurance Office Abolishment Act would protect our strong state regulatory structure by fully repealing the FIO.”
The reintroduction of the bill comes shortly after PIA’s 2023 Advocacy Day, where PIA members from around the country urged their elected representatives to support the repeal of the office. An identical House bill by Rep. Ben Cline (R-VA) was introduced on April 27.
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.
Source: www.pianational.org.
