PIA Statement on Passage of Federal Insurance Office Reform Act
Statement by By Jon Gentile, Vice President of Government Relations, National Association of Professional Insurance Agents (PIA)
WASHINGTON – On June 7, the U.S. House Financial Services Committee passed H.R. 3861, the Federal Insurance Office Reform Act on a vote of 36-21. The FIO Reform Act will eliminate the subpoena power of the Federal Insurance Office (FIO), and its power to issue reports will be somewhat curtailed. This is notable due to the FIO’s tendency to issue reports where it has no mandate. The FIO will continue to have a role in negotiating international covered agreements, but this bill requires state insurance commissioners to be consulted and involved throughout such negotiations. Consistent and mandatory state regulatory involvement will provide an important check on FIO’s power.
The National Association of Professional Insurance Agents (PIA) supports the original intent of H.R. 3861. However, we are concerned that the legislation now may not have a meaningful impact because of an amendment offered by Rep. Ed Royce (R-CA), adopted during the Committee mark-up, that would empower the Secretary of the Treasury to direct the FIO to involve itself in unspecified domestic insurance issues.
PIA commends Reps. Sean Duffy (R-WI) and Denny Heck (D-WA) for their work on this legislation, and we will continue to work with policymakers to advance the cause of protecting state-based regulatory authority over the insurance industry. PIA remains committed to the eventual repeal of the Federal Insurance Office.
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 America.PIA’s web address is www.pianet.com.