This week, members of the PIA Texas met with the offices of their congressional delegation as part of PIA’s 2022 Advocacy Day. In their meetings, the PIA Texas members drew lawmakers’ attention to several of PIA’s 2022 Issues of Focus: the dangers of federal regulatory overreach into the insurance industry and the need to repeal the Federal Insurance Office (FIO), the need for a long-term reauthorization of the National Flood Insurance Program (NFIP), and the importance of making the 20 percent tax deduction for passthrough entities permanent.
PIA supports legislation sponsored by Sen. Ted Cruz (R-TX) and Reps. Ben Cline (R-VA) and Tom Tiffany (R-WI) to repeal the FIO (S. 524/H.R. 4866). The FIO was created by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act and is an ongoing threat to the successful state insurance regulatory system. In 2019, members of the PIA Texas played a key role in bringing the issue of FIO’s intrusion into the state regulation of insurance to the attention of Sen. Cruz, which eventually led to the repeal bill’s introduction in the Senate.
In their meetings, PIA Texas members explained to congressional offices why the state insurance regulatory system is preferable to the involvement of the federal government in regulating insurance. Members noted that, as long as the FIO exists, it will be an ever-increasing threat to the state insurance regulatory system.
The PIA Texas members also drew attention to our concern that, just last year, the FIO’s mandate was expanded by the Biden administration’s Executive Order (EO) on Climate-Related Financial Risk, which directed the Treasury Secretary to task the FIO with assessing “climate-related issues or gaps in the supervision and regulation of insurers.” That EO opened the door to yet another issue for the FIO to involve itself in, and, late last year, the FIO issued a Request for Information on climate-related insurance risk. The Texas PIA asked members of their congressional delegation to cosponsor existing legislation to repeal the FIO to protect the longstanding and successful state regulatory regime.
PIA Texas members also took the opportunity to urge the need for a long-term extension of the NFIP with needed reforms. In addition, they encouraged support for the Main Street Tax Certainty Act of 2021 (H.R. 1381/S. 480), which would make the 20 percent passthrough deduction permanent. The tax deduction for passthroughs will expire in December 2025 unless Congress acts.
Their efforts this week were part of PIA’s 2022 series of year-round, state-specific advocacy events that offer agents the chance to meet with federal policymakers on the issues that matter most to them. Throughout the year, PIA members from across the country will spend their Advocacy Days engaging with lawmakers on PIA’s current Issues of Focus.