U.S. Congress Introduces Bills to Abolish the Federal Insurance Office

Both chambers of Congress have seen bills introduced this year to abolish the Federal Insurance Office. The Federal Insurance Office (FIO) was established by Title V of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank). The FIO is housed within the U.S. Department of the Treasury and is headed by a director who is appointed by the secretary of the Treasury.

Opposition to the FIO can be seen by the introduction of two bills; H.R. 1862, the Federal Insurance Office Abolishment Act of 2019 by U.S. Congressman Alexander Mooney (R-WV), and S. 1586, introduced by Senators Ted Cruz (R-TX), Cindy Hyde-Smith (R-MS), and James Inhofe (R-OK). In a press release, Senator Cruz stated that this bill will “rein in bureaucratic overreach by the federal government and allow insurance regulation to be centered in the states.”

U.S. Congressman Mooney also introduced the same legislation during the 115thCongress, however, the bill died in committee. Despite numerous attempts to abolish the FIO, The Automotive Service Association (ASA) sought the establishment of the FIO, during Dodd-Frank deliberations, to offset a state regulatory insurance environment that was biased against collision shops and consumers. The ASA opposes any efforts to abolish or limit the FIO’s jurisdiction.

Written by Alexandra Moyer

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