Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB1694

Introduced
5/18/23  

Caption

Federal Insurance Office Abolishment Act of 2023

Impact

If passed, SB1694 would significantly alter the landscape of federal oversight over the insurance industry. By eliminating the Federal Insurance Office, the bill would reduce federal involvement in insurance regulation, which proponents argue will promote innovation and competition within the market. However, opponents of the bill are concerned that dismantling the FIO may increase systemic risks to the economy and undermine consumer protections that the office has traditionally provided. This change could lead to a more fragmented regulatory environment, with individual states having to take on more responsibility.

Summary

SB1694, known as the Federal Insurance Office Abolishment Act of 2023, proposes the elimination of the Federal Insurance Office (FIO) within the Department of the Treasury. The bill is aimed at deregulating the insurance industry by abolishing this office, which has been responsible for monitoring the insurance sector and protecting against systemic risks. The act seeks to amend the Dodd-Frank Wall Street Reform and Consumer Protection Act, removing references to the FIO and its duties.

Contention

The bill has sparked a debate among legislators and stakeholders. Supporters believe that the presence of the FIO creates unnecessary bureaucratic hurdles that inhibit the effectiveness of insurers. They argue that the market should self-regulate without heavy federal oversight. Conversely, critics warn that abolishing the FIO could pave the way for the same kind of reckless behavior that led to the financial crisis, stressing the importance of having a federal entity capable of monitoring risks across state lines. The discussion around this bill highlights the ongoing tensions between regulatory reform and consumer protection in the financial sector.

Companion Bills

US HB2933

Related Federal Insurance Office Elimination Act

Previously Filed As

US HB2933

Federal Insurance Office Elimination Act

US HB643

Federal Insurance Office Elimination Act

US HB3465

To enhance Federal Deposit Insurance Corporation transparency.

US SB1798

Offices of Countering Weapons of Mass Destruction and Health Security Act of 2023

US HB1569

CLAMP Act of 2023 CCP Lease Abolishment for Minerals and Petroleum Act of 2023

US SB1155

Federal Reserve Accountability Act of 2023

US SB1966

Junior Reserve Officers' Training Corps Safety Act of 2023

US SB1868

Secure Adjacent Federal Property Act of 2023

US HB5218

Federal Data Center Enhancement Act of 2023

US HB5065

Federal Jobs Guarantee Development Act of 2023

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