Sponsors (4)
The bill consolidates federal insurance authority into Treasury and formalizes state participation at FSOC, trading clearer statutory authority and some cost/coordination benefits for reduced independent oversight, potential politicization, and disruption for FIO staff.
Financial regulators, insurers, and taxpayers: statutory authority and cross-references are consolidated under the Secretary of the Treasury, reducing legal ambiguity about who oversees federal insurance policy.
Consumers, taxpayers, and the financial system: adding state insurance perspectives to FSOC improves the chance that insurance-sector risks will be detected and mitigated before they threaten broader financial stability.
State insurance commissioners and state governments: state commissioners gain a formal seat at FSOC, giving state-level regulators direct institutional access to systemic financial stability discussions.
Consumers, taxpayers, and the insurance market: shifting insurance oversight from an independent FIO into the Treasury concentrates authority and risks weakening focused, independent scrutiny of insurers and consumer protections.
State governments and the public: creating a presidentially appointed, Senate‑confirmed position for insurance representation risks politicizing the role and delaying state input into FSOC matters.
State insurance commissioners and state governments: the new FSOC member is nonvoting, so even with a formal seat state regulators may have limited ability to influence FSOC decisions.
Based on analysis of 5 sections of legislative text.
Eliminates the Federal Insurance Office, creates a Treasury-appointed United States Insurance Representative for international prudential insurance policy, and adds a State insurance commissioner as a nonvoting FSOC member.
Introduced January 16, 2026 by Troy Downing · Last progress January 16, 2026
Eliminates the Federal Insurance Office (FIO) and creates a Treasury-appointed United States Insurance Representative (USIR) to handle federal prudential insurance matters at the international level, while preserving Treasury's insurance authorities. It also updates federal statutes to replace references to FIO and adds a presidentially appointed State insurance commissioner (nonvoting) to the Financial Stability Oversight Council (FSOC), with NAIC input and rules for acting representation.