Schmidt Supports Legislation to Slash Federal Bureaucracy

WASHINGTON, DC: Today, Congressman Derek Schmidt (KS-02) announced he is an original cosponsor of the Federal Insurance Office Elimination Act. This legislation would abolish the U.S. Department of the Treasury’s (Treasury) Federal Insurance Office (FIO) and return sole regulatory authority over the insurance industry to the states.

“As is often the case, state and local governments know how to best handle state and local issues,” Congressman Schmidt said. “Since its inception, the Federal Insurance Office has done little more than impose unnecessary regulations on state officials whose regulatory authority is well established. I’m proud to cosponsor this bill to slash red tape and eliminate this duplicative office.”

“Regulation of the insurance industry has been left to the states since 1945, and for good reason,” Kansas Insurance Commissioner Vicki Schmidt said. “FIO’s purported mission as a federal monitor of the insurance industry is redundant at best, and wasteful at worse. I applaud Congressman Schmidt and the other cosponsors on their efforts to remove this inefficient use of taxpayer dollars and to promote the state-based regulation of insurance.”

The Federal Insurance Office Elimination Act is also supported by many national groups, including the National Association of Professional Insurance Agents, National Association of Mutual Insurance Companies, and the Independent Insurance Agents & Brokers of America.

BACKGROUND

The McCarran-Ferguson Act of 1945 gave states clear regulatory authority over the insurance industry. This authority remained in place until the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010, which created the FIO in clear violation of McCarran-Ferguson.

Originally introduced by Congressman Troy Downing (MT-02), H.R. 643, the Federal Insurance Office Elimination Act, eliminates the FIO and rightfully reestablishes states’ ability to maintain regulatory authority over the industry.

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