SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Insurance Capital Standards 
Clarification Act of 2014''.

SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE AND RISK-BASED CAPITAL 
              REQUIREMENTS.

    Section 171 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5371) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(4) Business of insurance.--The term `business of 
        insurance' has the same meaning as in section 1002(3).
            ``(5) Person regulated by a state insurance regulator.--The 
        term `person regulated by a State insurance regulator' has the 
        same meaning as in section 1002(22).
            ``(6) Regulated foreign subsidiary and regulated foreign 
        affiliate.--The terms `regulated foreign subsidiary' and 
        `regulated foreign affiliate' mean a person engaged in the 
        business of insurance in a foreign country that is regulated by 
        a foreign insurance regulatory authority that is a member of 
        the International Association of Insurance Supervisors or other 
        comparable foreign insurance regulatory authority as determined 
        by the Board of Governors following consultation with the State 
        insurance regulators, including the lead State insurance 
        commissioner (or similar State official) of the insurance 
        holding company system as determined by the procedures within 
        the Financial Analysis Handbook adopted by the National 
        Association of Insurance Commissioners, where the person, or 
        its principal United States insurance affiliate, has its 
        principal place of business or is domiciled, but only to the 
        extent that--
                    ``(A) such person acts in its capacity as a 
                regulated insurance entity; and
                    ``(B) the Board of Governors does not determine 
                that the capital requirements in a specific foreign 
                jurisdiction are inadequate.
            ``(7) Capacity as a regulated insurance entity.--The term 
        `capacity as a regulated insurance entity'--
                    ``(A) includes any action or activity undertaken by 
                a person regulated by a State insurance regulator or a 
                regulated foreign subsidiary or regulated foreign 
                affiliate of such person, as those actions relate to 
                the provision of insurance, or other activities 
                necessary to engage in the business of insurance; and
                    ``(B) does not include any action or activity, 
                including any financial activity, that is not regulated 
                by a State insurance regulator or a foreign agency or 
                authority and subject to State insurance capital 
                requirements or, in the case of a regulated foreign 
                subsidiary or regulated foreign affiliate, capital 
                requirements imposed by a foreign insurance regulatory 
                authority.''; and
            (2) by adding at the end the following new subsection:
    ``(c) Clarification.--
            ``(1) In general.--In establishing the minimum leverage 
        capital requirements and minimum risk-based capital 
        requirements on a consolidated basis for a depository 
        institution holding company or a nonbank financial company 
        supervised by the Board of Governors as required under 
        paragraphs (1) and (2) of subsection (b), the appropriate 
        Federal banking agencies shall not be required to include, for 
        any purpose of this section (including in any determination of 
        consolidation), a person regulated by a State insurance 
        regulator or a regulated foreign subsidiary or a regulated 
        foreign affiliate of such person engaged in the business of 
        insurance, to the extent that such person acts in its capacity 
        as a regulated insurance entity.
            ``(2) Rule of construction on board's authority.--This 
        subsection shall not be construed to prohibit, modify, limit, 
        or otherwise supersede any other provision of Federal law that 
        provides the Board of Governors authority to issue regulations 
        and orders relating to capital requirements for depository 
        institution holding companies or nonbank financial companies 
        supervised by the Board of Governors.
            ``(3) Rule of construction on accounting principles.--
        Notwithstanding any other provision of law, a depository 
        institution holding company or nonbank financial company 
        supervised by the Board of Governors of the Federal Reserve 
        that is also a person regulated by a State insurance regulator 
        or a regulated foreign subsidiary or a regulated foreign 
        affiliate of such person that files its holding company 
        financial statements utilizing only Statutory Accounting 
        Principles in accordance with State law, shall not be required 
        to prepare such financial statements in accordance with 
        Generally Accepted Accounting Principles.''.
Insurance Capital Standards Clarification Act of 2014 - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act concerning establishment of minimum leverage and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors of the Federal Reserve System (Board). States that federal banking agencies shall not be required to subject any person to such minimum capital requirements, to the extent that such person either: (1) acts in its capacity as a regulated insurance entity regulated by a state insurance regulator, or (2) is a regulated foreign subsidiary engaged in the business of insurance (including a regulated foreign affiliate of such subsidiary). Exempts from any requirement to prepare holding company financial statements in accordance with Generally Accepted Accounting Principles any Board-supervised depository institution holding company or nonbank financial company that is also a person regulated by a state insurance regulator or a regulated foreign subsidiary (or a regulated foreign affiliate) that files its holding company financial statements using only Statutory Accounting Principles in accordance with state law.
Insurance Capital Standards Clarification Act of 2014