Insurance Capital and Accounting Standards Act of 2013

Summary: Insurance Capital and Accounting Standards Act of 2013 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and the Home Owners' Loan Act to make minimum leverage and risk-based capital requirements governing insurance companies under the state law also apply to insurance companies that are either depository holding companies or subsidiaries of depository holding companies. Presumes any insurance company, insurance affiliate, or insurance subsidiary in compliance with applicable risk-based capital standards under state law also to be in compliance with minimum capital requirements of Dodd-Frank. Declares inapplicable to such companies the minimum leverage and risk-based capital requirements of Dodd-Frank unless the Board of Governors of the Federal Reserve System (Board) first determines that: (1) the benefits of applying those requirements outweigh their cost, and (2) a quantitative impact study shows such requirements to be appropriate. Prohibits the Board from requiring a nonbank financial company that is an insurance company under its supervision to comply with accounting standards that differ from regulatory accounting standards under state law. Amends the Federal Deposit Insurance Act (FDIA) to require a federal banking agency, before requiring a depository institution holding company that is an insurance company (or that has one or more subsidiaries that are insurance companies) to be used directly or indirectly as a source of financial strength for a subsidiary depository institution, to first obtain: (1) the consent of the domiciliary state insurance commissioner, and (2) a certification that the commissioner considered the safety and soundness of the insurance company or subsidiary insurance company before providing such consent. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Insurance Capital and Accounting 
Standards Act of 2013''.

SEC. 2. LEVERAGE AND RISK-BASED CAPITAL REQUIREMENTS.

    Subsection (b) of section 171 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5371(b)) is amended--
            (1) by redesignating paragraphs (3), (4), (5), (6), and (7) 
        as paragraphs (4), (5), (6), (7), and (8), respectively; and
            (2) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Insurance companies.--
                    ``(A) In general.--The minimum leverage capital 
                requirements and the minimum risk-based capital 
                requirements established under paragraphs (1) and (2) 
                shall, for depository institution holding companies and 
                nonbank financial companies supervised by the Board of 
                Governors that is an insurance company, or that has one 
                or more subsidiaries that are insurance companies--
                            ``(i) with respect to the insurance 
                        company, adhere to the regulatory accounting 
                        practices and procedures applicable to, and the 
                        capital structure of, such companies; and
                            ``(ii) with respect to the insurance 
                        company, utilize the governing State law 
                        capital requirements for insurance companies.
                    ``(B) Compliance with capital requirements under 
                state law.--
                            ``(i) Presumption.--Any insurance company, 
                        insurance affiliate, or insurance subsidiary in 
                        compliance with applicable risk-based capital 
                        standards established under State law shall be 
                        presumed to satisfy any minimum capital 
                        requirements of this section.
                            ``(ii) Determination of board with respect 
                        to presumption.--The Board of Governors may, on 
                        a case-by-case basis on the record, determine 
                        that the presumption in clause (i) should not 
                        apply, provided that the Board first 
                        establishes through rulemaking the general 
                        procedures and standards to be utilized for 
                        such proceedings.
                            ``(iii) Effect of determination.--Where the 
                        Board of Governors makes a determination under 
                        clause (ii) that the presumption should not 
                        apply to a company, the requirements of 
                        subparagraphs (A), (C), and (D) remain 
                        applicable in establishing capital rules for 
                        such company.
                    ``(C) Analysis of leverage and risk based capital 
                requirements.--No requirements under paragraph (1) and 
                (2) for a company described under subparagraph (A) 
                shall apply unless the Board--
                            ``(i) carries out a cost-benefit analysis 
                        of the application of those requirements 
                        specific to a company described under 
                        subparagraph (A), including soliciting and 
                        reviewing public comment of the analysis prior 
                        to any final rulemaking, and the Board of 
                        Governors determines that the benefits of 
                        applying the requirements outweigh the cost; 
                        and
                            ``(ii) carries out a quantitative impact 
                        study of the application of those requirements 
                        specific to a company described under 
                        subparagraph (A), including soliciting and 
                        reviewing public comment of the study prior to 
                        any final rulemaking, and only apply the 
                        requirements if the Board of Governors 
                        determines that the study shows the 
                        requirements are appropriate.
                    ``(D) Rulemaking requirements.--Any rulemaking 
                implementing paragraphs (1) and (2) shall separately 
                incorporate and reflect the requirements provided for 
                under subparagraphs (A), (B), and (C).''.

SEC. 3. ACCOUNTING STANDARDS APPLICABLE TO INSURANCE COMPANIES.

    Section 115 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5325) is amended by adding at the end the 
following:
    ``(h) Accounting Standards Applicable to Insurance Companies.--With 
respect to a nonbank financial company supervised by the Board of 
Governors that is an insurance company, the Board of Governors may not 
require the insurance company to comply with accounting standards, 
including generally accepted accounting principles, that are different 
than those regulatory accounting standards applicable to the insurance 
company under applicable State law.''.

SEC. 4. SOLVENCY, CAPITAL, AND ACCOUNTING REQUIREMENTS FOR INSURANCE-
              BASED SAVINGS AND LOAN HOLDING COMPANIES.

    Section 10(g) of the Home Owners' Loan Act (12 U.S.C. 1467a(g)) is 
amended by adding at the end the following:
            ``(6) Solvency, capital, and accounting requirements for 
        insurance-based savings and loan holding companies.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this section, in establishing capital 
                standards required for a savings and loan holding 
                company that is an insurance company or that has one or 
                more subsidiaries that are insurance companies, the 
                Board shall--
                            ``(i) with respect to the insurance 
                        company, adhere to the regulatory accounting 
                        practices and procedures applicable to, and the 
                        capital structure of, such company;
                            ``(ii) with respect to the insurance 
                        company, utilize the governing State law 
                        capital requirements for insurers; and
                            ``(iii) not require any insurance company 
                        to comply with accounting standards, including 
                        generally accepted accounting principles, that 
                        are different than those accounting standards 
                        the company is required to comply with by the 
                        company's State regulator.
                    ``(B) Compliance with capital requirements under 
                state law.--
                            ``(i) Presumption.--Any insurance company, 
                        insurance affiliate, or insurance subsidiary in 
                        compliance with applicable risk-based capital 
                        standards established under State law shall be 
                        presumed to satisfy any capital requirements of 
                        this Act.
                            ``(ii) Determination of board with respect 
                        to presumption.--The Board may, on a case-by-
                        case basis on the record, determine that the 
                        presumption in clause (i) should not apply, 
                        provided that the Board first establishes 
                        through rulemaking the general procedures and 
                        standards to be utilized for such proceedings.
                            ``(iii) Effect of determination.--Where the 
                        Board makes a determination under clause (ii) 
                        that the presumption should not apply to a 
                        company, the requirements of subparagraphs (A), 
                        (C), and (D) remain applicable in establishing 
                        capital rules for such company.
                    ``(C) Analysis of capital requirements.--No capital 
                requirements under this Act for a company described 
                under subparagraph (A) shall apply unless the Board--
                            ``(i) carries out a cost-benefit analysis 
                        of the application of those requirements 
                        specific to a company described under 
                        subparagraph (A), including soliciting and 
                        reviewing public comment of the analysis prior 
                        to any final rulemaking, and the Board 
                        determines that the benefits of applying the 
                        requirements outweigh the cost; and
                            ``(ii) carries out a quantitative impact 
                        study of the application of those requirements 
                        specific to a company described under 
                        subparagraph (A), including soliciting and 
                        reviewing public comment of the study prior to 
                        any final rulemaking, and only apply the 
                        requirements if the Board determines that the 
                        study shows the requirements are appropriate.
                    ``(D) Rulemaking requirements.--Any rulemaking 
                setting capital rules for companies described in 
                subparagraph (A) shall separately incorporate and 
                reflect the requirements provided for under 
                subparagraphs (A), (B), and (C).''.

SEC. 5. SOURCE OF STRENGTH.

    Section 38A of the Federal Deposit Insurance Act (12 U.S.C. 1831o-
1) is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Insurance Regulator Consent.--In cases involving a depository 
institution holding company that is an insurance company or that has 
one or more subsidiaries that are insurance companies, before the 
appropriate Federal banking agency may require such insurance company 
to be used directly or indirectly as a source of financial strength 
pursuant to subsection (a) or (b), the appropriate Federal banking 
agency shall obtain--
            ``(1) the consent of the insurance commissioner (or similar 
        official charged with the principal responsibility of 
        supervising the business of insurance within each State, 
        territory, or insular possession of the United States) of the 
        insurance company's domiciliary State; and
            ``(2) a certification from such commissioner that the 
        commissioner considered the safety and soundness of the 
        insurance company or subsidiary insurance company prior to 
        providing such consent.''.