II 

115TH CONGRESS 

1ST SESSION S. 1360 

To require the Board of Governors of the Federal Reserve System to establish 

an Insurance Policy Advisory Committee on International Capital Standards and Other Insurance Issues, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 14, 2017 

Mr. HELLER (for himself and Mr. TESTER) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To require the Board of Governors of the Federal Reserve 

System to establish an Insurance Policy Advisory Committee on International Capital Standards and Other 

Insurance Issues, 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 ‘‘International Insur5 ance Capital Standards Accountability Act of 2017’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 


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1 (1) the term ‘‘appropriate committees of Con2 gress’’ means— 

3 (A) the Committee on Banking, Housing, 

4 and Urban Affairs of the Senate; and 

5 (B) the Committee on Financial Services 

6 of the House of Representatives; 

7 (2) the term ‘‘Board of Governors’’ means the 

8 Board of Governors of the Federal Reserve System; 

9 (3) the term ‘‘Committee’’ means the Insurance 

10 Policy Advisory Committee on International Capital 

11 Standards and Other Insurance Issues established 

12 under section 4(a); and 

13 (4) the term ‘‘Secretary’’ means the Secretary 

14 of the Treasury. 

15 SEC. 3. FINDINGS. 

16 Congress finds that the Secretary and the Board of 

17 Governors should— 

18 (1) support increasing transparency at any 

19 global insurance or international standard-setting 

20 regulatory or supervisory forum in which the Sec21 retary and the Board of Governors participate, in22 cluding supporting and advocating for greater public 

23 observer access to working groups and committee 

24 meetings of the International Association of Insur25 ance Supervisors; and 


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1 (2) achieve consensus positions with State in2 surance regulators, through the National Association 

3 of Insurance Commissioners— 

4 (A) if the Secretary and the Board of Gov5 ernors take a position, or reasonably intend to 

6 take a position, with respect to an insurance 

7 proposal by a global insurance regulatory or su8 pervisory forum; and 

9 (B) when the Secretary, the Board of Gov10 ernors, and the National Association of Insur11 ance Commissioners represent the United 

12 States in negotiations with respect to insurance 

13 issues before the International Association of 

14 Insurance Supervisors, the Financial Stability 

15 Board, or any other international forum of fi16 nancial regulators or supervisors that considers 

17 insurance issues. 

18 SEC. 4. INSURANCE POLICY ADVISORY COMMITTEE. 

19 (a) ESTABLISHMENT.—The Board of Governors shall 

20 establish the Insurance Policy Advisory Committee on 

21 International Capital Standards and Other Insurance 

22 Issues. 

23 (b) MEMBERSHIP.—The Committee shall be com24 posed of not more than 11 members, all of whom shall 

25 represent a diverse set of expert perspectives from the varVerDate Sep 11 2014 03:30 Jun 20, 2017 Jkt 069000 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1360.IS S1360

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1 ious sectors of the insurance industry of the United 

2 States, including individuals— 

3 (1) from the fields of— 

4 (A) life insurance; 

5 (B) property and casualty insurance; and 

6 (C) reinsurance; and 

7 (2) with experience serving as— 

8 (A) agents and brokers; 

9 (B) academics; 

10 (C) consumer advocates; or 

11 (D) experts on issues facing underserved 

12 insurance communities and consumers. 

13 (c) NONAPPLICABILITY OF FACA.—The Federal Ad14 visory Committee Act (5 U.S.C. App.) shall not apply to 

15 the Committee or the activities of the Committee. 

16 SEC. 5. REQUIREMENTS FOR CONSENT TO ADOPT INTER17 NATIONAL CAPITAL INSURANCE STANDARDS. 

18 The Secretary and the Board of Governors may not 

19 agree to, accept, establish, enter into, or consent to the 

20 adoption of a final international capital insurance stand21 ard with an international standard-setting organization or 

22 a foreign government, authority, or regulatory entity un23 less— 

24 (1) the Secretary and the Chair of the Board 

25 of Governors have, with respect to the text of the 


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1 proposed final international capital insurance stand2 ard— 

3 (A) published the text in the Federal Reg4 ister; 

5 (B) made the text available for public com6 ment for a period of not less than 30 days; and 

7 (C) submitted a copy of the text to the ap8 propriate committees of Congress on a date on 

9 which both Houses of Congress are in session; 

10 (2) the international capital insurance standard 

11 is not inconsistent with capital requirements set 

12 forth in the State-based system of insurance regula13 tion; and 

14 (3) if the international capital insurance stand15 ard will apply to a company supervised by the Board 

16 of Governors, the international capital insurance 

17 standard is not inconsistent with the capital require18 ments of the Board of Governors for that company. 

19 SEC. 6. REPORTS. 

20 (a) REPORTS AND TESTIMONY BY SECRETARY OF

21 THE TREASURY AND CHAIR OF THE BOARD OF GOV22 ERNORS OF THE FEDERAL RESERVE SYSTEM.— 

23 (1) IN GENERAL.—The Secretary and the Chair 

24 of the Board of Governors, or their designees, shall 

25 submit to the appropriate committees of Congress 


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1 an annual report, and provide annual testimony to 

2 those committees, relating to the efforts of the Sec3 retary and the Chair, along with the National Asso4 ciation of Insurance Commissioners, with respect to 

5 global insurance regulatory or supervisory forums, 

6 including a description of— 

7 (A) the insurance regulatory or supervisory 

8 standard-setting issues under discussion at 

9 international standard-setting bodies, including 

10 the Financial Stability Board and the Inter11 national Association of Insurance Supervisors; 

12 (B) the effects that proposals discussed at 

13 international insurance regulatory or super14 visory forums of insurance could have on con15 sumer and insurance markets in the United 

16 States; 

17 (C) any position taken by the Secretary 

18 and the Board of Governors during inter19 national insurance discussions; and 

20 (D) the efforts by the Secretary and the 

21 Board of Governors to increase transparency 

22 at— 

23 (i) the Financial Stability Board with 

24 respect to insurance proposals; and 


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1 (ii) the International Association of 

2 Insurance Supervisors, including efforts to 

3 provide additional public access to working 

4 groups and committees of the International 

5 Association of Insurance Supervisors. 

6 (2) TERMINATION.—This paragraph shall ter7 minate on December 31, 2020. 

8 (b) REPORTS AND TESTIMONY BY NATIONAL ASSO9 CIATION OF INSURANCE COMMISSIONERS.—The National 

10 Association of Insurance Commissioners may provide tes11 timony to Congress on the issues described in subsection 

12 (a)(1). 

13 (c) JOINT REPORT BY THE CHAIR OF THE BOARD

14 OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM AND

15 THE SECRETARY OF THE TREASURY.— 

16 (1) IN GENERAL.—Before supporting or con17 senting to the adoption of any final international in18 surance capital standard, the Secretary and the 

19 Chair of the Board of Governors shall, in consulta20 tion with the National Association of Insurance 

21 Commissioners, complete a study, and submit to 

22 Congress a report on the results of the study, with 

23 respect to the impact that the capital standard 

24 would have on consumers and markets in the United 

25 States. 


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1 (2) NOTICE AND COMMENT.— 

2 (A) NOTICE.—With respect to a report de3 scribed in paragraph (1), the Secretary and the 

4 Chair of the Board of Governors shall, on the 

5 date on which the Secretary and the Chair 

6 begin drafting the report, provide notice to the 

7 appropriate committees of Congress that the 

8 Secretary and the Chair have begun drafting 

9 the report. 

10 (B) OPPORTUNITY FOR COMMENT.—Dur11 ing the period beginning on the date on which 

12 a report is submitted to Congress under para13 graph (1) and ending on the date that is 60 

14 days after the date on which the report is sub15 mitted, the Secretary and the Chair of the 

16 Board of Governors shall provide an oppor17 tunity for public comment with respect to the 

18 report. 

19 (3) REVIEW BY COMPTROLLER GENERAL.—On 

20 the date on which the Secretary and the Chair of the 

21 Board of Governors submit to Congress a report 

22 under paragraph (1), the Secretary and the Chair 

23 shall submit to the Comptroller General of the 

24 United States a copy of the report for review by the 

25 Comptroller General. 


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1 (d) REPORT ON REDUCTION IN TRANSPARENCY.— 

2 Not later than 180 days after the date of enactment of 

3 this Act, the Chair of the Board of Governors and the 

4 Secretary, or their designees, shall submit to Congress a 

5 report, and provide testimony to Congress, with respect 

6 to the efforts of the Chair and the Secretary to increase 

7 transparency at meetings of the International Association 

8 of Insurance Supervisors. 

Æ 


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