DALLAS, March 5, 2021 /PRNewswire/ -- The Texas Professional Insurance Agents (Texas PIA) supports S. 524, the "Federal Insurance Office Abolishment Act," introduced in the U.S. Senate by Senator Ted Cruz (R-TX).
"Since the Federal Insurance Office was created in 2010, it has continuously tried to increase its duties and expand the role of the federal government in insurance. Simply put, its very existence is a threat to the successful state insurance regulatory system. The Texas PIA firmly believes the insurance industry must throw its weight behind repealing the Federal Insurance Office once and for all," said David Gorman, President of the Texas PIA and Texas National Director for PIA National.
The Federal Insurance Office (FIO) was created as part of the Wall Street Reform and Consumer Protection Act, more commonly known as "Dodd-Frank." Many of the duties of the FIO are duplicative of other offices in the U.S. government and, like most federal offices, since its creation its power has only increased. In the few years it has existed, the FIO has called for federal regulation of mortgage insurance; inclusion in supervisory colleges with state regulators; and uniform national standards for state guaranty associations.
In addition, it now seeks to administer the National Association of Registered Agents and Brokers (NARAB), an activity well outside the FIO's mandate. This would be a troubling addition to its current authority.
The Texas PIA played a leading role in encouraging the introduction of this bill in 2019, the first-time legislation was ever put forward in the U.S. Senate to fully repeal the office. Members of the Texas PIA met with Senator Cruz's congressional staff during PIA's annual Advocacy Day and urged them to introduce legislation to repeal the FIO.
"Senate Cruz's office allowed us to lay out the very real threat the FIO presents to the state insurance regulatory system, and the senator's championing of this bill is a clear example that constituents can have an impact on policymaking in Washington, DC. The Texas PIA will continue to advocate in favor of it to build support for its eventual enactment," said Victoria Reece, the executive director of the Texas PIA.
Texas Professional Insurance Agents is an affiliate of the National Association of Professional Insurance Agents (PIA). Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes, and businesses. PIA members are Local Agents Serving Main Street America SM. PIA's web address is www.pianet.com.
SOURCE Texas Professional Insurance Agents