Insurance is a local product that helps protect consumers from financial disaster when they suffer a loss. For that reason, it has been regulated at the state level for more than 150 years, because our state insurance department knows Nebraska’s communities and consumers better than anyone in Washington ever could.
In fact, a 2013 study by the Government Accountability Office on the 2007-09 financial crisis found that actions by state regulators and the National Association of Insurance Commissioners helped limit the effects of the crisis in the insurance industry.
Unfortunately, this successful system is under attack by proponents of federal insurance regulation. In 2010, the Federal Insurance Office (FIO) was established as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Like most federal offices, since its creation, its power has increased. Proponents of the FIO have made clear by their actions that they will continue to seek out ways for its power to continue to be increased.
Thankfully, legislation has been introduced in Congress to repeal this dangerous office. Sen. Ted Cruz (R-Texas) and Rep. Alex Mooney (R-W. Va.) have introduced the FIO Abolishment Act (S. 1586 and H.R. 1862) that would repeal the FIO.
As an independent insurance agent, I care about my clients’ well-being and worry about the continued expansion in authority of the FIO. I encourage Nebraska’s congressional delegation and senators to support this important bill.
If our representatives truly stand for state primacy in protecting insurance consumers, they will sign on to this legislation.
National Director, Nebraska-Iowa Professional Insurance Agents Association