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Concerns Remain With Federal Insurance Office Act, Says PIA

The bill was amended by advocates of optional federal charters

The National Association of Professional Insurance Agents (PIA) said that concerns remain following the passage of the Federal Insurance Office Act of 2009 (H.R. 2609) by the House Financial Services Committee following a committee mark-up.

The committee approved the bill December 2.

Leonard Brevik, executive vice president & CEO of PIA National, said: “While positive changes to H.R. 2609 were implemented throughout the committee process which made the bill slightly less onerous, PIA nevertheless believes that creating a federal insurance office is a bad idea, not a good one. It is certainly not something that should be cheered by independent insurance agents.

According to PIA, the creation of an FIO increases the possibility that this office will be used by advocates of federal insurance regulation to advance their goals. This bill was amended during the committee mark-up by advocates of optional federal charters to require that the newly-created FIO conduct a study of federal insurance regulation. This would put the FIO itself in the position of recommending to congress whether the power to regulate insurance should be taken from the states and its own authority expanded.