DALLAS – The Texas Professional Insurance Agents (Texas PIA) thanks Senator Ted Cruz (R-TX) for introducing S. 1586, the “Federal Insurance Office Abolishment Act,” in the U.S. Senate this week.

“The introduction of this legislation in the Senate is a positive development in our ongoing defense of the state insurance regulatory system. The creation of the Federal Insurance Office established a slippery slope of federal encroachment on the state insurance regulatory system. Repealing this office is the best way to defend that system,” said Jimmy Beathard, PIA National Director for the Texas PIA.

 

The Federal Insurance Office (FIO) was created in 2010 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.

 

During last month’s congressional fly-in of the National Association of Professional Insurance Agents (PIA National), the PIA Federal Legislative Summit, members of the Texas PIA met with Senator Cruz’s congressional staff and urged them to introduce legislation to repeal the FIO.

 

“We are fortunate to be represented in the Senate by a senator who listens to his constituents. During our meeting, we laid out the very real threat the FIO presents to the state insurance regulatory system, and the introduction of this bill is evidence that engaging with your elected representatives matters,” said David Gorman, President of the Texas PIA.
 

“The Texas PIA is proud to have played a role in the development of this bill,” said Vicki Reece, executive director of the Texas PIA. “We will now advocate to build support for it and its eventual enactment.”

Texas Professional Insurance Agents is an affiliate of the National Association of Professional Insurance Agents (PIA National). 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.