Bills Could Abolish Federal Insurance Office
July 16, 2019—Bills to abolish the Federal Insurance Office have been introduced in the U.S. House of Representatives and the U.S. Senate.
Title V of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) established the Federal Insurance Office (FIO). The FIO is housed within the U.S. Department of the Treasury and provides expertise and advice regarding insurance matters to the U.S. Treasury Department and other federal agencies.
According to a press release, the Automotive Service Association (ASA) sought the establishment of FIO, during Dodd-Frank deliberations, to offset a state regulatory insurance environment. ASA says that environment was biased against collision shops and consumers. In the last Congress, the House passed a bill to eliminate FIO but Senate blocked the legislation.
Opposition for FIO in the 116th Congress can be seen in the form of two bills:
- R. 1862, the Federal Insurance Office Abolishment Act of 2019 by U.S. Congressman Alexander Mooney (R-WV), and
- 1586, introduced by U.S. Senators Ted Cruz (R-TX), Cindy Hyde-Smith (R-MS), and James Inhofe (R-OK).
ASA says it opposes these two bills. Learn how the Dodd-Frank Reform affects body shops by clicking here.