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PIA Opposes Bill That Could Lead to Federal Insurance Czar

PIA National is expressing concerns about a provision in the Financial CHOICE Act—which is supposed to reduce regulation—that could lead to the creation of a federal insurance czar...
April 27, 2017


PIA National is expressing concerns about a provision in the Financial CHOICE Act—which is supposed to reduce regulation—that could lead to the creation of a federal insurance czar.

Ironically, this new federal office with greatly expanded powers would be created by a provision included in the Financial Creating Hope and Opportunity for Investors, Consumers, and Entrepreneurs (CHOICE) Act—legislation intended to reduce, not increase, federal encroachment resulting from the Dodd-Frank Act.

The language in question merges the Federal Insurance Office (FIO) with the independent member with insurance expertise on the Financial Stability Oversight Council to create the Office of Independent Insurance Advocate. PIA and the National Association of Insurance Commissioners (NAIC) have both already called for the complete elimination of the FIO, because it is unnecessary. PIA submitted testimony to the House Financial Services Committee for an April 26, 2017 hearing on the Financial CHOICE Act.

“This provision of the Financial Choice Act runs completely counter to the intent of Dodd-Frank reform by creating a new, expansive and unnecessary federal insurance bureaucracy with the potential to grow,” said PIA National Executive Vice President & CEO Mike Becker. “The Independent Insurance Advocate could lead to a federal insurance czar with no supervision, who would be positioned to usurp our strong and effective system of state insurance regulation.”

“Congress has a mandate to rein in federal bureaucracies—not create new ones,” Becker said. “We call on lawmakers to remove this provision from the Financial CHOICE Act. PIA opposes the creation of an Office of the Independent Insurance Advocate.” more

PIA National Testimony to the House Committee on Financial Services April 26, 2017 
RE: The Financial CHOICE Act of 2017