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PIA to House: Repeal, Don’t Replace FIO

PIA urges House to include repeal of Federal Insurance Office in Dodd-Frank reform legislation.
January 11, 2017

In a letter to House Financial Services Committee Chairman Jeb Hensarling, 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.”

“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 first called for repeal of the FIO in a statement issued November 22, 2016.

The National Association of Insurance Commissioners (NAIC) will push for the abolition of the FIO, according to a January 10 article in Politico.

Read PIA’s full press release [PIA: Repeal and Don’t Replace the Federal Insurance Office].

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