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FIO – Federal Insurance Office – Workers Comp Federalization


FIO – Federal Insurance Office – Shocker

I read an article in a few of the major news outlets that somewhat shocked me. The shock was not too significant as I had predicted months ago that the Federal Insurance Office or FIO just being involved in international insurance matters was somewhat of a farce.

The department Of The Treasury Badge Federal Insurance Office Workers Compensation
Wikimedia – Francis Hopkinson

We all love it when we are proved accurate. I had warned many times the FIO was going to grab power to the point of Federalizing Workers Comp. A blatant start to the FIO covering more turf hit the insurance airwaves within the last few days.

Congressman Edward Royce from California has asked the FIO to look into exactly what status the National Association of Insurance Commissioners (NAIC) holds in its basic operations. He is concerned the NAIC is actually promulgating interstate regulation of the insurance industry. The NAIC is actually not important to me in the issue.

Where does the FIO actually possess this authority as their Director is now investigating the NAIC? The FIO was created to oversee any federal systemic risk . The FIO now may look to regulate any insurance carrier that would cause a systemic risk. The systemic risk idea came from the AIG bailout fallout.

Woman Holding Umbrella Federal Insurance Office On The Beach

As a side note, the Congressman introduced (drum roll, please) legislation initiating federal regulation of the insurance industry. Are you ready for another shock? The FIO reports to the Center for Medicaid/Medicare Services. (CMS)

I wrote quite a few articles on the Death of Workers Comp as we know it. This may not be the start of the process, but where there is smoke – there is fire. As a caveat, RIMS backs the federalization of insurance as a way to save money.

I have often said if you are a WC adjuster, underwriter, agent, etc. you will need to be very flexible over the next few years as to how your job will morph over time.

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One Response

  1. Minnesota successfully created SECOND CLASS CITIZENS with its work comp statutes.
    Minnesota would greatly benefit from the Federalization of the Workers’ Compensation system.
    Minnesota has destroyed its system by paying off insurance companies and bowing down to employers who whine about not wanting to take responsibility for their injured employees. Both have bought off the legislators to write the work comp laws in their favor. No employer has to hire or re-hire any injured worker. Insurance companies replaced medical benefits with opiates. Some injured workers, live off welfare and food shelves, and on the streets.
    Minnesota has successfully created a group of ‘SECOND CLASS CITIZENS’. Its system is laden with legal theft, conspiracy, and excessive profit on the backs of injured workers. They take the injured worker’s social security benefits meant as a pension and give it to the insurance carrier. Really – that is written into the law. Insurance companies make BILLIONS every year, now why do you think they give money back to them – re-elections, campaign funds, mansions, retirement, vacations, expensive cars, and forever jobs within the system.
    Yes, Federalization of Work Comp would work for the injured in Minnesota for a good change.


James J Moore - Workers Comp Expert

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications


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