PIA: Repeal and Don't Replace the Federal Insurance Office
In a
letter to House Financial Services Committee Chairman Jeb Hensarling,
the National Association of Professional Insurance Agents (PIA) calls for the repeal of the
Federal Insurance Office (FIO) without replacing it.
PIA National Executive Vice President & CEO Mike Becker said that with Congress poised to
significantly roll back key provisions of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, repeal of the FIO should be included in the Financial CHOICE Act, the
legislative vehicle for Dodd-Frank reform.
"At the same time, we would like to see a provision that was inserted in last year's version
of the Financial CHOICE Act removed," Becker said. "That provision would create a new federal
office called the Office of the Independent Insurance Advocate within the Treasury Department.
We are concerned that merging the FIO into such a new office could unintentionally establish
an even stronger federal insurance entity with an even broader mandate."
PIA opposed the creation of the FIO from the outset. In 2010, advocates of federal insurance
regulation succeeded in getting the FIO established as part of the Wall Street Reform and
Consumer Protection Act (Dodd-Frank)—but PIA, along with others in industry including the
National Association of Insurance Commissioners (NAIC), fought back attempts at the time
to give the FIO broad authority. In the end, protections against the FIO acting as a
regulator of the business of insurance were included.
"Neither the Federal Insurance Office, nor an Office of the Independent Insurance Advocate,
is needed," said PIA National Vice President of Government Relations Jon Gentile. "If the goal
of the new Congress is to eliminate unnecessary federal regulation, getting rid of the FIO makes
good sense. Doing so would reaffirm that regulation of insurance should continue to be the
responsibility of the states."
"PIA National respectfully asks that the 115th Congress use the Financial CHOICE Act to fully
repeal the FIO without shifting its current duties into a new federal office," said PIA National
in its letter to Chairman Hensarling. "It is possible to achieve the goals of streamlined federal
efficiency, a unified voice in international negotiations, and the provision of resources to the
independent member of FSOC without the creation of this office. We would welcome the opportunity
to discuss such solutions."
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 members are Local Agents Serving Main Street AmericaSM.
PIA's web address is
www.pianet.com.
This press release is online at:
http://www.pianet.com/news/press-releases/2017/repealdontreplacethefio011017