I 

113TH CONGRESS 

1ST SESSION H. R. 2140 

To permit insurance companies that are depository holding companies, or 

are subsidiaries of depository holding companies, to comply with the 

accounting and capital requirements applicable to the insurance company 

under State law, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2013 

Mr. GARY G. MILLER of California (for himself and Mrs. MCCARTHY of New 

York) introduced the following bill; which was referred to the Committee 

on Financial Services 

A BILL 

To permit insurance companies that are depository holding 

companies, or are subsidiaries of depository holding companies, to comply with the accounting and capital requirements applicable to the insurance company under 

State law, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Insurance Capital and 

5 Accounting Standards Act of 2013’’. 


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1 SEC. 2. LEVERAGE AND RISK-BASED CAPITAL REQUIRE2 MENTS. 

3 Subsection (b) of section 171 of the Dodd-Frank Wall 

4 Street Reform and Consumer Protection Act (12 U.S.C. 

5 5371(b)) is amended— 

6 (1) by redesignating paragraphs (3), (4), (5), 

7 (6), and (7) as paragraphs (4), (5), (6), (7), and 

8 (8), respectively; and 

9 (2) by inserting after paragraph (2) the fol10 lowing new paragraph: 

11 ‘‘(3) INSURANCE COMPANIES.— 

12 ‘‘(A) IN GENERAL.—The minimum lever13 age capital requirements and the minimum 

14 risk-based capital requirements established 

15 under paragraphs (1) and (2) shall, for deposi16 tory institution holding companies and nonbank 

17 financial companies supervised by the Board of 

18 Governors that is an insurance company, or 

19 that has one or more subsidiaries that are in20 surance companies— 

21 ‘‘(i) with respect to the insurance 

22 company, adhere to the regulatory account23 ing practices and procedures applicable to, 

24 and the capital structure of, such compa25 nies; and 


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1 ‘‘(ii) with respect to the insurance 

2 company, utilize the governing State law 

3 capital requirements for insurance compa4 nies. 

5 ‘‘(B) COMPLIANCE WITH CAPITAL RE6 QUIREMENTS UNDER STATE LAW.— 

7 ‘‘(i) PRESUMPTION.—Any insurance 

8 company, insurance affiliate, or insurance 

9 subsidiary in compliance with applicable 

10 risk-based capital standards established 

11 under State law shall be presumed to sat12 isfy any minimum capital requirements of 

13 this section. 

14 ‘‘(ii) DETERMINATION OF BOARD

15 WITH RESPECT TO PRESUMPTION.—The 

16 Board of Governors may, on a case-by-case 

17 basis on the record, determine that the 

18 presumption in clause (i) should not apply, 

19 provided that the Board first establishes 

20 through rulemaking the general procedures 

21 and standards to be utilized for such pro22 ceedings. 

23 ‘‘(iii) EFFECT OF DETERMINATION.— 

24 Where the Board of Governors makes a de25 termination under clause (ii) that the preVerDate Mar 15 2010 03:31 May 30, 2013 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2140.IH H2140

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1 sumption should not apply to a company, 

2 the requirements of subparagraphs (A), 

3 (C), and (D) remain applicable in estab4 lishing capital rules for such company. 

5 ‘‘(C) ANALYSIS OF LEVERAGE AND RISK

6 BASED CAPITAL REQUIREMENTS.—No require7 ments under paragraph (1) and (2) for a com8 pany described under subparagraph (A) shall 

9 apply unless the Board— 

10 ‘‘(i) carries out a cost-benefit analysis 

11 of the application of those requirements 

12 specific to a company described under sub13 paragraph (A), including soliciting and re14 viewing public comment of the analysis 

15 prior to any final rulemaking, and the 

16 Board of Governors determines that the 

17 benefits of applying the requirements out18 weigh the cost; and 

19 ‘‘(ii) carries out a quantitative impact 

20 study of the application of those require21 ments specific to a company described 

22 under subparagraph (A), including solic23 iting and reviewing public comment of the 

24 study prior to any final rulemaking, and 

25 only apply the requirements if the Board 


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1 of Governors determines that the study 

2 shows the requirements are appropriate. 

3 ‘‘(D) RULEMAKING REQUIREMENTS.—Any 

4 rulemaking implementing paragraphs (1) and 

5 (2) shall separately incorporate and reflect the 

6 requirements provided for under subparagraphs 

7 (A), (B), and (C).’’. 

8 SEC. 3. ACCOUNTING STANDARDS APPLICABLE TO INSUR9 ANCE COMPANIES. 

10 Section 115 of the Dodd-Frank Wall Street Reform 

11 and Consumer Protection Act (12 U.S.C. 5325) is amend12 ed by adding at the end the following: 

13 ‘‘(h) ACCOUNTING STANDARDS APPLICABLE TO IN14 SURANCE COMPANIES.—With respect to a nonbank finan15 cial company supervised by the Board of Governors that 

16 is an insurance company, the Board of Governors may not 

17 require the insurance company to comply with accounting 

18 standards, including generally accepted accounting prin19 ciples, that are different than those regulatory accounting 

20 standards applicable to the insurance company under ap21 plicable State law.’’. 


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1 SEC. 4. SOLVENCY, CAPITAL, AND ACCOUNTING REQUIRE2 MENTS FOR INSURANCE-BASED SAVINGS AND 

3 LOAN HOLDING COMPANIES. 

4 Section 10(g) of the Home Owners’ Loan Act (12 

5 U.S.C. 1467a(g)) is amended by adding at the end the 

6 following: 

7 ‘‘(6) SOLVENCY, CAPITAL, AND ACCOUNTING

8 REQUIREMENTS FOR INSURANCE-BASED SAVINGS

9 AND LOAN HOLDING COMPANIES.— 

10 ‘‘(A) IN GENERAL.—Notwithstanding any 

11 other provision of this section, in establishing 

12 capital standards required for a savings and 

13 loan holding company that is an insurance com14 pany or that has one or more subsidiaries that 

15 are insurance companies, the Board shall— 

16 ‘‘(i) with respect to the insurance 

17 company, adhere to the regulatory account18 ing practices and procedures applicable to, 

19 and the capital structure of, such com20 pany; 

21 ‘‘(ii) with respect to the insurance 

22 company, utilize the governing State law 

23 capital requirements for insurers; and 

24 ‘‘(iii) not require any insurance com25 pany to comply with accounting standards, 

26 including generally accepted accounting 


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1 principles, that are different than those ac2 counting standards the company is re3 quired to comply with by the company’s 

4 State regulator. 

5 ‘‘(B) COMPLIANCE WITH CAPITAL RE6 QUIREMENTS UNDER STATE LAW.— 

7 ‘‘(i) PRESUMPTION.—Any insurance 

8 company, insurance affiliate, or insurance 

9 subsidiary in compliance with applicable 

10 risk-based capital standards established 

11 under State law shall be presumed to sat12 isfy any capital requirements of this Act. 

13 ‘‘(ii) DETERMINATION OF BOARD

14 WITH RESPECT TO PRESUMPTION.—The 

15 Board may, on a case-by-case basis on the 

16 record, determine that the presumption in 

17 clause (i) should not apply, provided that 

18 the Board first establishes through rule19 making the general procedures and stand20 ards to be utilized for such proceedings. 

21 ‘‘(iii) EFFECT OF DETERMINATION.— 

22 Where the Board makes a determination 

23 under clause (ii) that the presumption 

24 should not apply to a company, the re25 quirements of subparagraphs (A), (C), and 


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1 (D) remain applicable in establishing cap2 ital rules for such company. 

3 ‘‘(C) ANALYSIS OF CAPITAL REQUIRE4 MENTS.—No capital requirements under this 

5 Act for a company described under subpara6 graph (A) shall apply unless the Board— 

7 ‘‘(i) carries out a cost-benefit analysis 

8 of the application of those requirements 

9 specific to a company described under sub10 paragraph (A), including soliciting and re11 viewing public comment of the analysis 

12 prior to any final rulemaking, and the 

13 Board determines that the benefits of ap14 plying the requirements outweigh the cost; 

15 and 

16 ‘‘(ii) carries out a quantitative impact 

17 study of the application of those require18 ments specific to a company described 

19 under subparagraph (A), including solic20 iting and reviewing public comment of the 

21 study prior to any final rulemaking, and 

22 only apply the requirements if the Board 

23 determines that the study shows the re24 quirements are appropriate. 


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1 ‘‘(D) RULEMAKING REQUIREMENTS.—Any 

2 rulemaking setting capital rules for companies 

3 described in subparagraph (A) shall separately 

4 incorporate and reflect the requirements pro5 vided for under subparagraphs (A), (B), and 

6 (C).’’. 

7 SEC. 5. SOURCE OF STRENGTH. 

8 Section 38A of the Federal Deposit Insurance Act 

9 (12 U.S.C. 1831o–1) is amended— 

10 (1) by redesignating subsections (c), (d), and 

11 (e) as subsections (d), (e), and (f), respectively; and 

12 (2) by inserting after subsection (b) the fol13 lowing: 

14 ‘‘(c) INSURANCE REGULATOR CONSENT.—In cases 

15 involving a depository institution holding company that is 

16 an insurance company or that has one or more subsidi17 aries that are insurance companies, before the appropriate 

18 Federal banking agency may require such insurance com19 pany to be used directly or indirectly as a source of finan20 cial strength pursuant to subsection (a) or (b), the appro21 priate Federal banking agency shall obtain— 

22 ‘‘(1) the consent of the insurance commissioner 

23 (or similar official charged with the principal respon24 sibility of supervising the business of insurance with25 in each State, territory, or insular possession of the 


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1 United States) of the insurance company’s domi2 ciliary State; and 

3 ‘‘(2) a certification from such commissioner 

4 that the commissioner considered the safety and 

5 soundness of the insurance company or subsidiary 

6 insurance company prior to providing such con7 sent.’’. 

Æ 


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