WASHINGTON, April 28, 2023 /PRNewswire/ — The National Association of Professional Insurance Agents (PIA) is pleased by the reintroduction of one of our top priorities for 2023, the “Federal Insurance Office Elimination Act” by Rep. Ben Cline (R-VA). The Federal Insurance Office Elimination Act 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).
“In 2010, advocates of federal insurance regulation succeeded in getting the Federal Insurance Office (FIO) established as part of the 2010 Dodd-Frank law–but PIA has never given up on repealing it,” said Jon Gentile, PIA vice president of government relations.
“Many of the FIO’s duties are examples of federal overreach in the context of our system of state insurance regulation,” Gentile said. “In addition, the FIO has consistently sought new ways to expand its mandate beyond the intent of Congress, which put specific limits on its authority.”
In 2016, PIA was the first national insurance association to call for the repeal of the FIO. Throughout the last decade, the FIO has called for federal regulation of mortgage insurance; for its inclusion in supervisory colleges with state regulators; and for uniform national standards for state guaranty associations. In addition, it may soon seek to administer the National Association of Registered Agents and Brokers (NARAB). Each of these actions is an overreach.
In recent years, its authority has continued to expand. 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.
“As long as the office continues to exist, it will remain a very real threat to the successful state-based system of insurance regulation. To do nothing and allow this office to accrue more power over time is tantamount to endorsing an increased federal role in the regulation of insurance. PIA draws a line in the sand on this issue and will not back down from this effort,” said Gentile. PIA will continue to build a base of support among lawmakers for repeal of the FIO.
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 www.pianational.org
This press release is online here
You can view Rep. Cline’s press release here
SOURCE National Association of Professional Insurance Agents