U.S. Rep. Troy Downing (R-MT) introduced legislation that would eliminate the Federal Insurance Office (FIO) within the U.S. Department of the Treasury.
The bill, the McCarran-Ferguson Restoration Act, would create a United States Insurance Representative, appointed by the Treasury Secretary. In addition, it would expand state insurance representation on the Financial Stability Oversight Council (FSOC) by elevating the current nonvoting state insurance commissioner to a voting member.
Downing had introduced the Federal Insurance Office Elimination Act in early 2025. This new bill reflects substantial industry feedback to preserve key functions of the office like the facilitation of U.S. representation on the international stage and FSOC representation.
“The Federal Insurance Office exists in spite of the fact that the regulation of insurance has and always will belong to the states,” Downing said. “FIO is a duplicative federal bureaucracy that hinders the efforts of state regulators better equipped to address the insurance needs of their communities. The McCarran-Ferguson Restoration Act affirms this by eliminating the Federal Insurance Office while preserving some of its key features, delivering greater clarity for U.S. insurance regulation.”
The bill harkens back to the McCarran-Ferguson Act, which Congress passed in 1945. That law solidified states’ regulatory authority over the insurance industry.
The 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act created the Federal Insurance Office under Treasury. It charged the FIO with “the authority to monitor all aspects of the insurance sector.” That was in violation of McCarran-Ferguson, Downing said.
Under this bill, the roles of the United States Insurance Representative would include representing the federal government on the international stage, replacing the FIO Director as a nonvoting member on the Financial Stability Oversight Council, and assisting in administering the Terrorism Risk Insurance Act (TRIA). It narrows the scope of the Insurance Representative to prudential aspects of insurance only, requires Treasury to hire and retain individuals with expertise in matters related to insurance, and includes no authorization of appropriations.
The bill has the support of several organizations including the National Association of Mutual Insurance Companies (NAMIC), the Independent Insurance Agents & Brokers of America, the National Association of Professional Insurance Agents (PIA), the American Property Casualty Insurance Association (APCIA), and the National Association of Insurance Commissioners (NAIC).
“The consensus is clear: regulatory authority over insurance should be left to the states,” Jimi Grande, NAMIC SVP of Federal & Political Affairs, said. “Rather than informing federal policymakers, the Federal Insurance Office has for years duplicated the work of state regulators, routinely exceeding statutory guidance and inflicting burdensome costs that are ultimately paid by consumers. As a former state insurance commissioner, Congressman Downing knows this all too well, and NAMIC appreciates his leadership in stopping this wasteful federal overreach.”
The bill is cosponsored by Reps. Scott Fitzgerald (R-WI) and Andy Ogles (R-TN).