Bill
HR 7130
Creates a US Treasury-based United States Insurance Representative to coordinate international insurance policy, preempt state measures, and represent the U.S. in global insurance
Date introduced: January 16, 2026
Sponsor(s): Rep. Downing, with Reps. Fitzgerald, Downing, and Nehls as co-sponsors
Committee: Financial Services
Goal: Eliminate the Federal Insurance Office (FIO) within the Department of the Treasury and replace it with a new senior official, the United States Insurance Representative, to coordinate federal and international insurance policy, including preemption determinations related to international agreements.
Key provisions and changes
1) Elimination of the Federal Insurance Office (FIO)
- The FIO, and the position of its Director, are removed.
- The Treasury retains authority over insurance matters, and the bill does not repeal existing Treasury powers in insurance.
2) Establishment of the United States Insurance Representative (USIR)
- Creates the role of United States Insurance Representative within the Department of the Treasury.
- Timeline: The Secretary must appoint the USIR and hire personnel with insurance expertise no later than one year after the enactment.
3) Duties and scope of the USIR
- Coordinate federal efforts and develop U.S. policy on prudential (risk-related) aspects of international insurance.
- Represent the U.S. Treasury in the International Association of Insurance Supervisors (IAIS) or successor bodies.
- Assist the Secretary in negotiating covered international insurance agreements.
- Determine whether state-insurance measures are preempted by covered agreements.
- Assist in administering the Terrorism Risk Insurance Program under the Terrorism Risk Insurance Act (TRIA) of 2002.
- Consult with states and state regulators on matters of national and international importance.
- Advise the Secretary on prudential international insurance policy issues.
- Coverage: Applies to prudential aspects of all insurance lines in the U.S., subject to certain exclusions.
4) Exclusions and preemption framework
- Excludes health insurance; excludes long-term care insurance that’s not part of life/annuity components (with coordination with HHS); excludes crop insurance under the Federal Crop Insurance Act.
- State insurance measures can be preempted if:
- They result in less favorable treatment of non-U.S. insurers domiciled in a covered jurisdiction, or
- They are inconsistent with a covered agreement.
- Preemption process includes:
- Notice and consultation with relevant state regulators and the U.S. Trade Representative.
- Publication in the Federal Register; opportunity for public comment.
- A de novo standard for judicial review of inconsistency determinations.
- A formal notice of determination and a waiting period (not less than 30 days) before preemption becomes effective.
- Post-preemption prohibition on enforcement of the preempted state measure.
5) Administrative and procedural aspects
- The USIR operates under applicable Administrative Procedures Act provisions; judicial review is de novo.
- The Secretary may issue regulations and procedures to implement this section.
- The USIR may use Treasury resources to carry out duties.
- Consultation with state regulators is encouraged or required as appropriate.
6) Related amendments to existing law
- Dodd-Frank Act amendments: Replaces references to the FIO with the Secretary of the Treasury as the relevant federal authority in certain provisions.
- Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRCRA) amendments: Replaces references to the FIO and aligns with Treasury/FrB oversight instead.
- Financial Stability Oversight Council (FSOC) enhancements: Adds a State insurance commissioner (appointed by the President with Senate advice and consent) as a voting member, and clarifies the USIR’s role within FSOC for international prudential matters; allows for acting State Insurance Commissioner as a nonvoting member if necessary; procedural provisions for lists of recommendations from the National Association of Insurance Commissioners (NAIC) and fallback appointment processes.
7) FSOC composition adjustments
- Adds a State insurance commissioner designated by the President to FSOC.
- Streamlines nominations by NAIC, with a 15-business-day deadline; allows presidential appointment if no list submitted.
- Extends term for State Insurance Commissioner in the Council to 4 years (from existing terms, per the bill’s text).
- Provisions for acting/state-commissioner participation and vacancy rules.
Potential impact
Notes for readers
Compiled from official sources — confirm details with the bill’s official record.
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