WASHINGTON--The author of legislation creating an Office ofInsurance Information within the Treasury Department is urgingcolleagues to pass the bill when it comes to the House floor thisweek, saying it is needed to give the federal government "acredible source of information and expertise on insurancematters."

Rep. Paul Kanjorski, D-Pa., in a "Dear Colleague" letter alsosaid the measure "does not change the regulation of insurance anddoes not take sides in the state-versus-federal regulation ofinsurance debates."

The National Association of Professional Insurance Agents,however, said in a letter released today that it disagrees withRep. Kanjorski's interpretation, saying it has become a bill"enabling federal insurance regulation."

The bill, H.R. 5840, the Insurance Information Act of 2008, isdue to come up on the House floor Wednesday, but some sources saidthe press of congressional business may delay action on it.

Rep. Kanjorski is chairman of the Capital Markets Subcommitteeof the House Financial Services Committee and primary sponsor ofthe legislation.

He says in his letter that "parties on both sides of the [OFC]issue have offered support for my bill."

Under the bill, Mr. Kanjorski explained, the director of theOffice of Insurance Information will collect data on insurance,analyze the data and issue reports to Congress.

Additionally, he said, the OII will "establish federal policy oninternational insurance matters and ensure that state insurancelaws are consistent with agreements between the U.S. and a foreignjurisdiction with regard to such federal policy."

He admitted that to promote federal trade policy, the TreasuryDepartment will have "the ability, under very limited circumstancesand very detailed procedures, to preempt a state insurance measurethat is inconsistent with an agreement regarding the policy madebetween the U.S. and a foreign jurisdiction.

"The preemption will only be used as a last resort," headded.

Additionally, Rep. Kanjorski said, "the legislation does notupset the current process of negotiating international agreementsbut seeks to provide a unified voice of advice to whoever the leadnegotiator is."

But PIA National President Robert Page argued in a PIAstatement, "This bill has been misleading from the outset."

He charged that the "title of the bill is a misnomer and therhetoric of its supporters is designed to conceal what is reallygoing on here."

Mr. Page said, "This piece of legislation is part of acoordinated push by advocates of federal insurance regulation tosweep away opposition and advance their agenda in a disingenuousmanner."

Kenneth Auerbach, PIA national president-elect, added, "This isno longer a bill that is only about creating an insuranceinformation office."

Mr. Auerbach said, "The current version of this bill wouldeffectively lay open to review and approval by the Secretary of theTreasury the laws and practices of all 55 United Statesjurisdictions in most matters relating to insurance."

He added, "People have been encouraged to read the bill morenarrowly than this."

If that is the case, he said, "then PIA wants the actuallanguage in the bill to articulate that narrowness. The currentlanguage provides the power to determine which state laws,regulations and industry practices will be preempted, without anyproper legislative authority acting to do so. This is a federalpower grab."