The House passed the Wall Street Reform and Consumer Protection Act of 2009 (H.R. 4173) on December 11, 2009. The bill would establish a FIO within the Department of the Treasury. It would have the following responsibilities:
- The FIO would be led by a director, appointed by the Secretary of the Treasury;
- The FIO director would serve alongside a state insurance commissioner in a non-voting advisory capacity on the Financial Services Oversight Council, the interagency body charged with monitoring systemic risk
- The FIO would monitor the insurance industry, gather information, identify regulatory gaps, administer the Terrorism Risk Insurance Program and represent U.S. insurance interests in international affairs; and
- The FIO would have limited authority to preempt state insurance regulations that it determines treat non-U.S. insurers less favorably than U.S. insurers authorized in that state and are inconsistent with a covered international agreement. Before making a determination, the director must consult with the state regulator and notify the U.S. Trade Representative. Determinations would be subject to de novo review.