Senate Introduces New Bill to Eliminate the FIO
Last week, legislation to eliminate the Federal Insurance Office (FIO) was introduced in the U.S. Senate.
S. 1586, which the Big “I” supports, was introduced by Sen. Ted Cruz (R-Texas) and cosponsored by two other Republicans. Currently, there are no Democratic cosponsors of the legislation, but the Big “I” will continue to call for action on the legislation. This is the first time Sen. Cruz has introduced this legislation. The companion U.S. House of Representatives legislation was introduced in March by Rep. Alex Mooney (R-West Virginia).
The FIO, which was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, serves as an information-gathering body housed within the U.S. Treasury Department. The FIO has several roles, including supporting international insurance agreements, administering the Terrorism Risk Insurance Program, and conducting reports and studies on the insurance market.
Over the years, the FIO has proven to have questionable value for insurance markets as well as consumers. As one of the leading supporters of a modernized state-based system of insurance regulation, the Big “I” supports eliminating or significantly restricting the authority of the FIO.
We'll keep you updated as the bill progresses.