Duffy Introduces Bipartisan FIO Reform Act

Washington DC – Wisconsin Congressman Sean Duffy, chairman of the House Financial Services Subcommittee on Housing & Insurance, today co-introduced the Federal Insurance Office (FIO) Reform Act with Congressman Denny Heck (D-WA). The FIO Reform Act would:

• Move FIO to the Office of International Affairs within the Treasury Department
• Limit FIO’s role largely to international matters and provide that FIO speaks for Treasury (but not other federal agencies) in international discussions
• Authorize FIO to coordinate federal insurance policy and require FIO to achieve consensus with the states before advocating or agreeing to positions in international forums such as the IAIS
• Eliminate FIO’s authority relating to purely domestic issues, including the authority to:
  • Engage in broad information gathering authority and reporting obligations
  • Issue subpoenas
• Retain FIO’s existing authority to:
  • “Monitor all aspects of the insurance industry” and
  • Advise the Treasury Secretary on the administration of the Terrorism Risk Insurance Act (TRIA). 
• Continue the authority of Treasury and the United States Trade Representative (USTR) to negotiate and enter into covered agreements (but the Secretary, not the FIO Director, would have the authority to determine whether a covered agreement preempts state law)
  • Provide that a covered agreement may not include new prudential requirements for U.S. insurers.
• Limit the number of FIO employees to five (recognizing the much more limited federal coordination and international role set forth for FIO and that the states already have more than 10,000 regulators adequately overseeing the industry domestically).

WI-7