State Insurance Regulation Preservation Act

Summary: State Insurance Regulation Preservation Act  This bill amends the Home Owners' Loan Act to limit the applicability of reporting and filing requirements for insurance savings and loan holding companies (ISLHCs). Such holding companies&nbsp;shall also be&nbsp;exempt from requirements relating to examination and supervision by the Federal Reserve Board (FRB) if they meet certain state and federal capital requirements. Certain FRB regulations as applied to ISLHCs must be tailored to the insurance business and applicable state insurance requirements. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Insurance Regulation 
Preservation Act''.

SEC. 2. SUPERVISION OF INSURANCE SAVINGS AND LOAN HOLDING COMPANIES.

    (a) Definitions.--Section 10(a)(1) of the Home Owners' Loan Act (12 
U.S.C. 1467a(a)(1)) is amended by inserting at the end the following:
                    ``(K) Domicile.--The term `domicile' means the 
                State in which an insurance underwriting company or the 
                holding company for such company is incorporated, 
                chartered, or organized.
                    ``(L) Business of insurance.--The term `business of 
                insurance' means any activity that is regulated in 
                accordance with the relevant State insurance laws and 
                regulations, including the writing of insurance and the 
                reinsuring of risks.
                    ``(M) Insurance savings and loan holding company.--
                The term `insurance savings and loan holding company' 
                means--
                            ``(i) a savings and loan holding company 
                        with 75 percent or more of its total 
                        consolidated assets in an insurance 
                        underwriting company (or insurance underwriting 
                        companies), other than assets associated with 
                        insurance for credit risk, during the 4 most 
                        recent consecutive quarters, as calculated in 
                        accordance with Generally Accepted Accounting 
                        Principles or the Statutory Accounting 
                        Principles in accordance with State law;
                            ``(ii) a company that--
                                    ``(I) was a savings and loan 
                                holding company as of July 21, 2010, 
                                and through date of enactment of this 
                                clause; and
                                    ``(II) was not subject to the Basel 
                                III capital regulation promulgated by 
                                the Board of Governors of the Federal 
                                Reserve System and the Comptroller of 
                                the Currency on October 11, 2013 (78 
                                Fed. Reg. 62018), because the savings 
                                and loan holding company held 25 
                                percent or more of its total 
                                consolidated assets in subsidiaries 
                                that are insurance underwriting 
                                companies (other than assets associated 
                                with insurance for credit risk); or
                            ``(iii) a top-tier savings and loan holding 
                        company that--
                                    ``(I) was registered as a savings 
                                and loan holding company before July 
                                21, 2010; and
                                    ``(II) is a New York not-for-profit 
                                corporation formed for the purpose of 
                                holding the stock of a New York 
                                insurance company.
                    ``(N) Insurance underwriting company.--The term 
                `insurance underwriting company' means an insurer that 
                is subject to regulation by a State insurance authority 
                of the insurer's domicile.
                    ``(O) State insurance authority.--The term `State 
                insurance authority' means the State insurance 
                authority of the State in which an insurance 
                underwriting company or holding company for such 
                company is domiciled.
                    ``(P) Top-tier savings and loan holding company.--
                The term `top-tier savings and loan holding company' 
                means the ultimate parent company in a savings and loan 
                holding company structure.''.
    (b) Registration.--Section 10(b)(1) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(b)(1)) is amended by inserting at the end the 
following new sentence:
    ``A savings and loan holding company that is an insurance savings 
and loan holding company shall register as an insurance savings and 
loan holding company.''.
    (c) Reports.--Section 10(b)(2) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)(2)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Insurance savings and loan holding 
                companies.--The Board, to the fullest extent possible, 
                shall request reports and other information filed by 
                insurance savings and loan holding companies and any 
                insurance underwriting company that is a subsidiary of 
                such company with other Federal authorities and the 
                State insurance authority for such company before 
                requesting such reports or information from the 
                insurance savings and loan holding company or any 
                insurance underwriting company that is a subsidiary of 
                such company.
                    ``(E) Rule of construction.--Nothing in this 
                section may be construed as prohibiting the Board from 
                requesting reports and other information that is not 
                otherwise collected and shared with other Federal or 
                State authorities.''.
    (d) Books and Records.--Section 10(b)(3) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(b)(3)) is amended--
            (1) by striking ``Each'' and inserting the following:
                    ``(A) In general.--Each''; and
            (2) by inserting at the end the following new subparagraph:
                    ``(B) Insurance savings and loan holding 
                companies.--The Board, to the fullest extent possible, 
                shall align any prescribed recordkeeping requirements 
                for an insurance savings and loan holding company with 
                the recordkeeping requirements imposed by the State 
                insurance authority of such company and any insurance 
                underwriting company that is a subsidiary of such 
                company.''.
    (e) Examinations.--Section 10(b)(4)(C) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(b)(4)(C)) is amended--
            (1) in clause (i), by striking the word ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iii) Insurance savings and loan holding 
                        companies.--
                                    ``(I) Coordination.--The Board, to 
                                the fullest extent possible, shall 
                                coordinate examinations of an insurance 
                                savings and loan holding company in 
                                conjunction with the State insurance 
                                authority of such company and any 
                                insurance underwriting company that is 
                                a subsidiary of such company and other 
                                State and Federal authorities in order 
                                to minimize the potential for 
                                duplication and conflict between the 
                                examinations conducted by the Board and 
                                the examinations conducted by other 
                                State and Federal authorities.
                                    ``(II) Scope and frequency.--
                                Following public notice and comment, 
                                the Board shall establish a schedule 
                                for the frequency and the scope of 
                                examinations of insurance savings and 
                                loan holding companies that is 
                                consistent with the supervisory 
                                framework required by paragraph (7).''.
    (f) Supervision.--Section 10(b) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)) is amended by inserting at the end the following new 
paragraph:
            ``(7) Insurance savings and loan holding companies.--
                    ``(A) Tailored supervision.--The Board, by rule, 
                shall establish a supervisory framework for insurance 
                savings and loan holding companies that--
                            ``(i) is tailored to the unique risks, 
                        operations, and activities of insurance savings 
                        and loan holding companies; and
                            ``(ii) to the fullest extent possible, and 
                        consistent with the safe and sound operation of 
                        insurance savings and loan holding companies, 
                        does not unnecessarily duplicate the 
                        supervision of insurance underwriting companies 
                        by the State insurance authorities for such 
                        companies or insurance underwriting companies 
                        that are subsidiaries of such companies.
                    ``(B) Review of supervisory guidance.--Following 
                public notice and comment, the Board shall review and 
                revise supervisory policy letters and guidance 
                applicable to insurance savings and loan holding 
                companies to ensure that such letters and guidance are 
                not inconsistent with the supervisory framework 
                required by this paragraph.''.

SEC. 3. ASSESSMENTS AND FEES FOR INSURANCE SAVINGS AND LOAN HOLDING 
              COMPANIES.

    Section 11(s) of the Federal Reserve Act (12 U.S.C. 248(s)), which 
relates to assessments and fees, is amended by inserting at the end the 
following new paragraph:
            ``(4) Excluded assets.--For purposes of paragraph (2)(B), 
        the total consolidated assets of an insurance savings and loan 
        holding company, as defined in section 10(a)(1)(L) of the Home 
        Owners' Loan Act (12 U.S.C. 1467a(a)(1)(L)), shall not include 
        assets attributable to the business of insurance conducted by 
        such company or any affiliate of such company, other than 
        assets associated with insurance for credit risk.''.

SEC. 4. IMPLEMENTATION.

    (a) Implementation of Supervisory Framework.--The Board shall 
establish the supervisory framework required by section 10(b)(7) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(b)(7)), as added by this Act, 
within 24 months of the date of enactment of this Act.
    (b) Review of Supervisory Guidance.--The Board shall complete the 
review of supervisory policy letters and policy guidance required by 
section 10(b)(7) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)(7)), 
as added by this Act, within 30 months of the date of enactment of this 
Act.
    (c) Report to Congress.--The Board, no later than 36 months after 
the date of enactment of this Act, shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives on the 
implementation of this Act.
    (d) Board Defined.--As used in this section, the term ``Board'' 
means the Board of Governors of the Federal Reserve System.

SEC. 5. RELATIONSHIP TO OTHER LAWS.

    This Act and the amendments made by this Act shall not limit any 
authority over insurance savings and loan holding companies (as defined 
under section 10(a)(1) of the Home Owners' Loan Act) that is provided 
by a Federal law other than the Home Owners' Loan Act.

SEC. 6. RULEMAKING AUTHORITY.

    The Board may issue regulations and orders as may be necessary to--
            (1) administer and carry out this Act and the amendments 
        made by this Act; and
            (2) prevent evasions of this Act and the amendments made by 
        this Act.

SEC. 7. RULE OF CONSTRUCTION.

    Nothing in this Act or the amendments made by this Act may be 
construed to affect the authority of the Board of Governors of the 
Federal Reserve System over any subsidiary of an insurance savings and 
loan holding company that is not an insurance underwriting company (as 
such terms are defined, respectively, under section 10(a)(1) of the 
Home Owners' Loan Act).

            Passed the House of Representatives September 12, 2018.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.