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PIA Statement on FIO Reform Act

On June 7, the U.S. House Financial Services Committee passed H.R. 3861, the Federal Insurance Office Reform Act.
June 12, 2018

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.

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.

Unfortunately, the FIO Reform Act as passed by the Financial Services Committee has less reform in it than when the legislation was conceived with PIA’s assistance. We are concerned that it 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. “Legislation to repeal or reduce the power of the FIO has been a top priority for PIA, and we’ve been proud to lead the effort in this regard,” said Jon Gentile, PIA’s vice president of government relations. “PIA remains committed to the eventual repeal of the Federal Insurance Office.”

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