PUBLIC LAW 113–279—DEC. 18, 2014 128 STAT. 3017 

Public Law 113–279 

113th Congress 

An Act 

To clarify the application of certain leverage and risk-based requirements under 

the Dodd-Frank Wall Street Reform and Consumer Protection Act. 

Be it enacted by the Senate and House of Representatives of 

the United States of America in Congress assembled, 

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 RISKBASED 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’— 

Definitions. 

12 USC 5301 

note. 

Insurance 

Capital 

Standards 

Clarification Act 

of 2014. 

Dec. 18, 2014 

[S. 2270] 


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128 STAT. 3018 PUBLIC LAW 113–279—DEC. 18, 2014 

‘‘(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.— ‘‘(A) IN GENERAL.—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 that 

is engaged in the business of insurance that files financial 

statements with a State insurance regulator or the 

National Association of Insurance Commissioners utilizing 

only Statutory Accounting Principles in accordance with 

State law, shall not be required by the Board under the 

authority of this section or the authority of the Home 

Owners’ Loan Act to prepare such financial statements 

in accordance with Generally Accepted Accounting Principles. 

‘‘(B) PRESERVATION OF AUTHORITY.—Nothing in 

subparagraph (A) shall limit the authority of the Board 

under any other applicable provision of law to conduct 

any regulatory or supervisory activity of a depository 

institution holding company or non-bank financial company 

supervised by the Board of Governors, including the collection or reporting of any information on an entity or groupwide basis. Nothing in this paragraph shall excuse the 

Board from its obligations to comply with section 161(a) 


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PUBLIC LAW 113–279—DEC. 18, 2014 128 STAT. 3019 

LEGISLATIVE HISTORY—S. 2270: 

CONGRESSIONAL RECORD, Vol. 160 (2014): 

June 3, considered and passed Senate. 

Dec. 10, considered and passed House. 

Æ 

of the Dodd-Frank Wall Street Reform and Consumer 

Protection Act (12 U.S.C. 5361(a)) and section 10(b)(2) of 

the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(2)), as 

appropriate.’’. 

Approved December 18, 2014. 


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