Insurance coverage commissioners from 9 states wish to the brand new Division of Authorities Effectivity to put off the Federal Insurance coverage Workplace.
The letter, addressed to DOGE heads Elon Musk and Vivek Ramaswamy, stated the FIO’s mission of monitoring the insurance coverage trade is “already successfully fulfilled by state regulators.”
“Since its inception, FIO has fluctuated between ineffectiveness and outright dishonesty in it dealings with the states,” continued the letter from insurance coverage commissioners David J. Bettencourt of New Hampshire, Glen Mulready of Oklahoma, Carter Lawrence of Tennessee, Mark Fowler of Alabama, Tim Temple of Louisiana, Vicki Schmidt of Kansas, Alan McClain of Arkansas, Mike Causey of North Carolina, and Allan McVey of West Virginia.
The commissioners stated “any capabilities [FIO] purports to serve may simply be absorbed by different federal workplaces or reverted to the states.” The letter to the DOGE co-leaders makes use of FIO’s newest “misguided effort” to gather knowledge from insurers in collaboration with the NAIC for instance of its alleged ineffectiveness, and questions FIO’s motivation for the info name. The commissioners stated it stays unclear whether or not the Treasury Division’s FIO wished the info for the needs of “shopper safety or to strain the insurance coverage trade into adopting ESG (environmental social and governance) insurance policies.”
Greater than two years in the past, FIO proposed to have property/casualty insurers submit zip-code-level knowledge, however the effort was criticized by trade trades who stated the request was too onerous, overly broad, and pointless. FIO dropped the plan after which stated it could collaborate with NAIC. However somewhat than working to make sure the accuracy of the info, the letter to DOGE from the commissioners stated FIO selected to go ahead with “flawed info.”
The elimination of FIO isn’t a brand new thought. In 2023, GOP members of the Home of Representatives launched a invoice to ditch FIO, created in 2010 as a part of the Dodd-Frank Wall Avenue Reform and Shopper Safety Act.
Earlier this month, a coalition of shopper, environmental, and honest housing teams known as upon FIO to release the homeowners insurance data.
NAIC has but to reply to a request for remark.
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