The language in question merges the Federal Insurance Office (FIO) with the independent member with insurance expertise on the Financial Stability Oversight Council to create the Office of Independent Insurance Advocate. PIA and the National Association of Insurance Commissioners (NAIC) have both already called for the complete elimination of the FIO, because it is unnecessary.

Senate-confirmed presidential appointee

The director of the new office would be a Senate-confirmed presidential appointee with a six-year term. The new office would have its own budget and would be able to hire its own employees, including attorneys, analysts, and economists.

Although housed in the Treasury Department, the bill has language prohibiting the Secretary of the Treasury from taking action to "delay or prevent the issuance of any rule or the promulgation of any regulation by the Independent Insurance Advocate," and prohibiting the Treasury Secretary from intervening "in any matter."

Related: How long will congressional action be generally favorable?

"We are struck by how powerful this position would be," said PIA National Vice President of Government Relations Jon Gentile. "This office could potentially grow in a manner that would lead to a federal regulatory bureaucracy."

Nationwide grassroots campaign

PIA announced plans to conduct a nationwide grassroots campaign urging Congress to both repeal the Federal Insurance Office, and prevent creation of an Office of the Independent Insurance Advocate. PIA is currently the only national association publicly advocating against the creation of this new insurance office.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses.