79–006 

115TH CONGRESS REPT. 115–804 " ! HOUSE OF REPRESENTATIVES 2d Session Part 1 

INTERNATIONAL INSURANCE STANDARDS ACT OF 2017 

JULY --, 2018.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. HENSARLING, from the Committee on Financial Services, 

submitted the following 

R E P O R T 

[To accompany H.R. 4537] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 4537) to preserve the State-based system of insurance 

regulation and provide greater oversight of and transparency on 

international insurance standards setting processes, and for other 

purposes, having considered the same, report favorably thereon 

with an amendment and recommend that the bill as amended do 

pass. 

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘International Insurance Standards Act of 2018’’. 

SEC. 2. CONGRESSIONAL FINDINGS. 

The Congress finds the following: 

(1) The State-based system for insurance regulation in the United States has 

served American consumers well for more than 150 years and has fostered an 

open and competitive marketplace with a diversity of insurance products to the 

benefit of policyholders and consumers. 

(2) Protecting policyholders by regulating to ensure an insurer’s ability to pay 

claims has been the hallmark of the successful United States system and should 

be the paramount objective of domestic prudential regulation and emerging 

international standards. 

(3) The Dodd-Frank Wall Street Reform and Consumer Protection Act (Public 

Law 111–203) reaffirmed the State-based insurance regulatory system. 

SEC. 3. REQUIREMENT THAT INSURANCE STANDARDS REFLECT UNITED STATES POLICY. 

(a) REQUIREMENT.—Parties representing the Federal Government in any international regulatory, standard-setting, or supervisory forum or in any negotiations 

of any international agreements relating to the prudential aspects of insurance shall 

not agree to, accede to, accept, or establish, and shall use their voice and shall vote 

to oppose, any proposed agreement or standard, including proposals developed by 


lotter on DSKBCFDHB2PROD with REPORTS
2 

the International Association of Insurance Supervisors (or a successor entity), unless 

such proposed agreement or standard— 

(1) is consistent with and reflective of the existing United States system of 

insurance regulation, including the primacy of policyholder protection in solvency regulation; and 

(2) recognizes the existing United States system of insurance regulation as 

satisfying such proposals. 

(b) FEDERAL INSURANCE OFFICE FUNCTIONS.—Subparagraph (E) of section 

313(c)(1) of title 31, United States Code, is amended by inserting ‘‘Department of 

the Treasury of the’’ before ‘‘United States’’. 

(c) NEGOTIATIONS.—Nothing in this section shall be construed to prevent participation in negotiations of any proposed agreement or standard. 

SEC. 4. STATE INSURANCE REGULATOR INVOLVEMENT IN INTERNATIONAL STANDARD SETTING. 

In developing international insurance standards pursuant to section 3, and 

throughout the negotiations of such standards, parties representing the Federal 

Government shall, on matters related to insurance, closely consult, coordinate with, 

and include in such meetings, State insurance commissioners or, at the option of 

the State insurance commissioners, designees of the insurance commissioners acting 

at their direction. 

SEC. 5. CONSULTATIONS. 

(a) CONSULTATION WITH CONGRESS.—Before initiating negotiations to enter into 

an agreement under section 3, during such negotiations, and before entering into 

any such agreement, parties representing the Federal Government shall provide 

written notice to and consult with the Committee on Financial Services of the House 

of Representatives and the Committee on Banking, Housing, and Urban Affairs of 

the Senate, and any other relevant committees of jurisdiction, regarding— 

(1) the intention of the United States to participate in or enter into such negotiations; 

(2) the nature and objectives of the negotiations; 

(3) the implementation of the agreement, including how it is consistent with 

and does not materially differ from or otherwise affect Federal or State laws 

or regulations; 

(4) the impact on the competitiveness of United States insurers; and 

(5) the impact on United States consumers. 

(b) CONSULTATION WITH FEDERAL ADVISORY COMMITTEE ON INSURANCE.—Before 

entering into an agreement under section 3, the Secretary of the Treasury shall consult with the Federal Advisory Committee on Insurance formed pursuant to section 

313(h) of title 31, United States Code. 

(c) SUBMISSION AND LAYOVER PROVISIONS.—Parties representing the Federal Government may not sign the final text or otherwise agree to, accept, or establish an 

agreement under section 3 that would not have the force and effect of law before— 

(1) such parties submit to the committees specified in subsection (a), on a day 

in which both Houses of Congress are in session, a copy of the final legal text 

of the agreement; and 

(2) the later of— 

(A) the expiration of 90-day period beginning on the date on which the 

copy of the final legal text of the agreement is submitted to the congressional committees under paragraph (1); or 

(B) if the President has vetoed a joint resolution described in section 6(b) 

relating to the agreement, the expiration of the 15-day period described in 

section 6(a)(2). 

(d) DELIVERY OF DOCUMENTS TO BOTH HOUSES.—Whenever, pursuant to this section, written notice or a document is required to be transmitted to the Congress, 

copies of such notice or document shall be delivered to both Houses of Congress on 

the same day and shall be delivered to the Clerk of the House of Representatives 

if the House is not in session and to the Secretary of the Senate if the Senate is 

not in session. 

SEC. 6. CONGRESSIONAL REVIEW. 

(a) DISAPPROVAL.— 

(1) IN GENERAL.—In the case of any agreement under section 3 that would 

not have the force and effect of law, the United States shall not be considered 

a party to such agreement if, before the expiration of the 90-day period beginning on the day that the final legal text of the agreement is submitted to the 

Congress pursuant to section 5(c)(1), a joint resolution described in subsection 

(b) is enacted into law. 


lotter on DSKBCFDHB2PROD with REPORTS
3 

(2) VETO.—If the President vetoes the joint resolution, the joint resolution 

shall be treated as enacted into law before the end of the 90-day period under 

paragraph (1) if both Houses of Congress vote to override such veto on or before 

the later of— 

(A) the last day of such 90-day period; or 

(B) the last day of the 15-day period (excluding any day described in subsection (h)) beginning on the date the Congress receives the veto message 

from the President. 

(b) CONTENTS OF RESOLUTION.—For purposes of this section, the term ‘‘resolution’’ 

means only a joint resolution of the two Houses of the Congress, that is introduced 

during the 60-day period beginning upon the submission to the Congress pursuant 

to section 5(c)(1) of the agreement to which such resolution relates, and the matter 

after the resolving clause of which is as follows: ‘‘That the Congress does not approve the agreement transmitted to the Congress pursuant to section 5(c)(1) of the 

International Insurance Standards Act of 2017, on llllll.’’, the blank space 

being filled with the appropriate date. 

(c) REFERENCE TO COMMITTEES.—All resolutions introduced in the House of Representatives shall be referred to the Committee on Financial Services and all resolutions introduced in the Senate shall be referred to the Committee on Banking, Housing, and Urban Affairs. 

(d) DISCHARGE OF COMMITTEES.— 

(1) IN GENERAL.—If the committee of either House to which a resolution has 

been referred has not reported it at the end of 30 days after its introduction, 

not counting any day which is excluded under subsection (h), it is in order to 

move either to discharge the committee from further consideration of the resolution or to discharge the committee from further consideration of any other resolution introduced with respect to the same matter, except that a motion to discharge— 

(A) may only be made on the second legislative day after the calendar day 

on which the Member making the motion announces to the House his intention to do so; and 

(B) is not in order after the committee has reported a resolution with respect to the same matter. 

(2) PRIVILEGE.—A motion to discharge under paragraph (1) may be made only 

by an individual favoring the resolution, and is highly privileged in the House 

and privileged in the Senate; and debate thereon shall be limited to not more 

than 1 hour, the time to be divided in the House equally between those favoring 

and those opposing the resolution, and to be divided in the Senate equally between, and controlled by, the majority leader and the minority leader or their 

designees. An amendment to the motion is not in order, and it is not in order 

to move to reconsider the vote by which the motion is agreed to or disagreed 

to. 

(e) FLOOR CONSIDERATION IN THE HOUSE.— 

(1) IN GENERAL.—A motion in the House of Representatives to proceed to the 

consideration of a resolution shall be highly privileged and not debatable. An 

amendment to the motion shall not be in order, nor shall it be in order to move 

to reconsider the vote by which the motion is agreed to or disagreed to. 

(2) DEBATE; NO RECONSIDERATION.—Debate in the House of Representatives 

on a resolution shall be limited to not more than 20 hours, which shall be divided equally between those favoring and those opposing the resolution. A motion further to limit debate shall not be debatable. No amendment to, or motion 

to recommit, the resolution shall be in order. It shall not be in order to move 

to reconsider the vote by which a resolution is agreed to or disagreed to. 

(3) CONSIDERATION OF OTHER MOTIONS.—Motions to postpone, made in the 

House of Representatives with respect to the consideration of a resolution, and 

motions to proceed to the consideration of other business, shall be decided without debate. 

(4) APPEALS TO DECISIONS OF CHAIR.—All appeals from the decisions of the 

Chair relating to the application of the Rules of the House of Representatives 

to the procedure relating to a resolution shall be decided without debate. 

(5) APPLICABILITY OF RULES.—Except to the extent specifically provided in the 

preceding provisions of this subsection, consideration of a resolution in the 

House of Representatives shall be governed by the Rules of the House of Representatives applicable to other resolutions in similar circumstances. 

(f) FLOOR CONSIDERATION IN THE SENATE.— 

(1) MOTION TO PROCEED.—A motion in the Senate to proceed to the consideration of a resolution shall be privileged. An amendment to the motion shall not 

be in order, nor shall it be in order to move to reconsider the vote by which 

the motion is agreed to or disagreed to. 


lotter on DSKBCFDHB2PROD with REPORTS
4 

(2) DEBATE ON RESOLUTION.—Debate in the Senate on a resolution, and all 

debatable motions and appeals in connection therewith, shall be limited to not 

more than 20 hours, to be equally divided between, and controlled by, the majority leader and the minority leader or their designees. 

(3) DEBATE ON MOTION OR APPEAL.—Debate in the Senate on any debatable 

motion or appeal in connection with a resolution shall be limited to not more 

than 1 hour, to be equally divided between, and controlled by, the mover and 

the manager of the resolution, except that in the event the manager of the resolution is in favor of any such motion or appeal, the time in opposition thereto, 

shall be controlled by the minority leader or his designee. Such leaders, or either of them, may, from time under their control on the passage of a resolution, 

allot additional time to any Senator during the consideration of any debatable 

motion or appeal. 

(4) MOTION TO LIMIT DEBATE.—A motion in the Senate to further limit debate 

on a resolution, debatable motion, or appeal is not debatable. No amendment 

to, or motion to recommit, a resolution is in order in the Senate. 

(g) PROCEDURES IN THE SENATE.— 

(1) PROCEDURES.—Except as otherwise provided in this section, the following 

procedures shall apply in the Senate to a resolution to which this section applies: 

(A)(i) Except as provided in clause (ii), a resolution that has passed the 

House of Representatives shall, when received in the Senate, be referred to 

the Committee on Banking, Housing, and Urban Affairs for consideration 

in accordance with this section. 

(ii) If a resolution to which this section applies was introduced in the Senate before receipt of a resolution that has passed the House of Representatives, the resolution from the House of Representatives shall, when received 

in the Senate, be placed on the calendar. If this clause applies, the procedures in the Senate with respect to a resolution introduced in the Senate 

that contains the identical matter as the resolution that passed the House 

of Representatives shall be the same as if no resolution had been received 

from the House of Representatives, except that the vote on passage in the 

Senate shall be on the resolution that passed the House of Representatives. 

(B) If the Senate passes a resolution before receiving from the House of 

Representatives a joint resolution that contains the identical matter, the 

joint resolution shall be held at the desk pending receipt of the joint resolution from the House of Representatives. Upon receipt of the joint resolution 

from the House of Representatives, such joint resolution shall be deemed 

to be read twice, considered, read the third time, and passed. 

(2) NON-IDENTICAL RESOLUTIONS.—If the texts of joint resolutions described in 

this section concerning any matter are not identical— 

(A) the Senate shall vote passage on the resolution introduced in the Senate; and 

(B) the text of the joint resolution passed by the Senate shall, immediately upon its passage (or, if later, upon receipt of the joint resolution 

passed by the House), be substituted for the text of the joint resolution 

passed by the House of Representatives, and such resolution, as amended, 

shall be returned with a request for a conference between the two Houses. 

(3) CONSIDERATION OF VETO MESSAGE.—Consideration in the Senate of any 

veto message with respect to a joint resolution described in subsection (b), including consideration of all debatable motions and appeals in connection therewith, shall be limited to 10 hours, to be equally divided between, and controlled 

by, the majority leader and the minority leader or their designees. 

(h) COMPUTATION OF PERIOD.—For purposes of subsection (a)(1) of this section and 

subsection (c)(2) of section 5, the 90-day period referred to in such subsections shall 

be computed by excluding— 

(1) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress 

sine die; and 

(2) any Saturday and Sunday, not excluded under paragraph (1), when either 

House is not in session. 

(i) EXERCISE OF RULEMAKING POWER.—This section is enacted by the Congress— 

(1) as an exercise of the rulemaking power of the House of Representatives 

and the Senate, respectively, and as such they are deemed a part of the rules 

of each House, respectively, but applicable only with respect to the procedure 

to be followed in that House in the case of resolutions described in subsection 

(b); and they supersede other rules only to the extent that they are inconsistent 

therewith; and 


lotter on DSKBCFDHB2PROD with REPORTS
5 

(2) with full recognition of the constitutional right of either House to change 

the rules (so far as relating to the procedure of that House) at any time, in the 

same manner and to the same extent as in the case of any other rule of that 

House. 

(j) RULE OF CONSTRUCTION.—This section, and any failure to enact a resolution 

under this section, shall not be construed to be an endorsement of or to establish 

or expand any authority to enter into or implement an agreement described in section 3 that is not otherwise provided for under Federal law. 

SEC. 7. COVERED AGREEMENTS. 

(a) PREEMPTION OF STATE INSURANCE MEASURES.—Subsection (f) of section 313 of 

title 31, United States Code, is amended by striking ‘‘Director’’ each place such term 

appears and inserting ‘‘Secretary’’. 

(b) DEFINITION.—Paragraph (2) of section 313(r) of title 31, United States Code, 

is amended— 

(1) in subparagraph (A), by striking ‘‘and’’ at the end; 

(2) in subparagraph (B), by striking the period at the end and inserting ‘‘; 

and’’; and 

(3) by adding at the end the following new subparagraph: 

‘‘(C) applies only on a prospective basis.’’. 

(c) CONSULTATION; SUBMISSION AND LAYOVER; CONGRESSIONAL REVIEW.—Section 

314 of title 31, United States Code is amended— 

(1) in subsection (b)— 

(A) in paragraph (2)(C), by striking ‘‘laws’’ and inserting the following: 

‘‘and Federal law, and the nature of any changes in the laws of the United 

States or the administration of such laws that would be required to carry 

out a covered agreement’’; and 

(B) by adding at the end the following new paragraph: 

‘‘(3) ACCESS TO NEGOTIATING TEXTS AND OTHER DOCUMENTS.—Congressional 

committees and staff with proper security clearances shall be given access to 

United States negotiating proposals, consolidated draft texts, and other pertinent documents related to the negotiations, including classified materials.’’; 

(2) in subsection (c)— 

(A) in the matter preceding paragraph (1), by striking ‘‘only if—’’ and inserting the following: ‘‘only if, before signing the final legal text or otherwise entering into the agreement—’’; 

(B) in paragraph (1), by striking ‘‘congressional committees specified in 

subsection (b)(1)’’ and inserting ‘‘congressional committees and to staff with 

proper security clearances’’; and 

(C) by striking paragraph (2) and inserting the following new paragraph: 

‘‘(2)(A) the 90-day period beginning on the date on which the copy of the final 

legal text of the agreement is submitted under paragraph (1) to the congressional committees and staff has expired; and 

‘‘(B) if the President has vetoed a joint resolution described in subsection 

(d)(2) relating to the agreement, the 15-day period described in subsection 

(d)(1)(B)(ii) has expired.’’; and 

(3) by adding at the end the following new subsections: 

‘‘(d) CONGRESSIONAL REVIEW.— 

‘‘(1) DISAPPROVAL.— 

‘‘(A) IN GENERAL.—A covered agreement shall have no force and effect in 

the United States if, before the expiration of the 90-day period beginning 

on the day that the final legal text of the agreement is submitted to the 

Congress pursuant to subsection (c), a joint resolution described in paragraph (2) is enacted into law. 

‘‘(B) VETO.—If the President vetoes the joint resolution, the joint resolution shall be treated as enacted into law before the end of the 90-day period 

under subparagraph (A) if both Houses of Congress vote to override such 

veto on or before the later of— 

‘‘(i) the last day of such 90-day period; or 

‘‘(ii) the last day of the 15-day period (excluding any day described 

in paragraph (8)) beginning on the date the Congress receives the veto 

message from the President. 

‘‘(2) CONTENTS OF RESOLUTIONS.—For purposes of this subsection, the term 

‘resolution’ means only a joint resolution of the two Houses of the Congress, 

that is introduced during the 60-day period beginning upon the submission to 

the Congress pursuant to subsection (c) of the covered agreement to which such 

resolution relates, and the matter after the resolving clause of which is as follows: ‘That the Congress does not approve the covered agreement transmitted 


lotter on DSKBCFDHB2PROD with REPORTS
6 

to the Congress pursuant to section 314(c) of title 31, United States Code, on 

llllll.’, the blank space being filled with the appropriate date. 

‘‘(3) REFERENCE TO COMMITTEES.—All resolutions introduced in the House of 

Representatives shall be referred to the Committee on Financial Services and 

all resolutions introduced in the Senate shall be referred to the Committee on 

Banking, Housing, and Urban Affairs. 

‘‘(4) DISCHARGE OF COMMITTEES.— ‘‘(A) IN GENERAL.—If the committee of either House to which a resolution 

has been referred has not reported it at the end of 30 days after its introduction, not counting any day which is excluded under paragraph (8), it is 

in order to move either to discharge the committee from further consideration of the resolution or to discharge the committee from further consideration of any other resolution introduced with respect to the same matter, 

except that a motion to discharge— 

‘‘(i) may only be made on the second legislative day after the calendar 

day on which the Member making the motion announces to the House 

his intention to do so; and 

‘‘(ii) is not in order after the committee has reported a resolution with 

respect to the same matter. 

‘‘(B) PRIVILEGE.—A motion to discharge under subparagraph (A) may be 

made only by an individual favoring the resolution, and is highly privileged 

in the House and privileged in the Senate; and debate thereon shall be limited to not more than 1 hour, the time to be divided in the House equally 

between those favoring and those opposing the resolution, and to be divided 

in the Senate equally between, and controlled by, the majority leader and 

the minority leader or their designees. An amendment to the motion is not 

in order, and it is not in order to move to reconsider the vote by which the 

motion is agreed to or disagreed to. 

‘‘(5) FLOOR CONSIDERATION IN THE HOUSE.— 

‘‘(A) IN GENERAL.—A motion in the House of Representatives to proceed 

to the consideration of a resolution shall be highly privileged and not debatable. An amendment to the motion shall not be in order, nor shall it be in 

order to move to reconsider the vote by which the motion is agreed to or 

disagreed to. 

‘‘(B) DEBATE; NO RECONSIDERATION.—Debate in the House of Representatives on a resolution shall be limited to not more than 20 hours, which shall 

be divided equally between those favoring and those opposing the resolution. A motion further to limit debate shall not be debatable. No amendment to, or motion to recommit, the resolution shall be in order. It shall 

not be in order to move to reconsider the vote by which a resolution is 

agreed to or disagreed to. 

‘‘(C) CONSIDERATION OF OTHER MOTIONS.—Motions to postpone, made in 

the House of Representatives with respect to the consideration of a resolution, and motions to proceed to the consideration of other business, shall 

be decided without debate. 

‘‘(D) APPEALS TO DECISIONS OF CHAIR.—All appeals from the decisions of 

the Chair relating to the application of the Rules of the House of Representatives to the procedure relating to a resolution shall be decided without debate. 

‘‘(E) APPLICABILITY OF RULES.—Except to the extent specifically provided 

in the preceding provisions of this paragraph, consideration of a resolution 

in the House of Representatives shall be governed by the Rules of the 

House of Representatives applicable to other resolutions in similar circumstances. 

‘‘(6) FLOOR CONSIDERATION IN THE SENATE.— 

‘‘(A) MOTION TO PROCEED.—A motion in the Senate to proceed to the consideration of a resolution shall be privileged. An amendment to the motion 

shall not be in order, nor shall it be in order to move to reconsider the vote 

by which the motion is agreed to or disagreed to. 

‘‘(B) DEBATE ON RESOLUTION.—Debate in the Senate on a resolution, and 

all debatable motions and appeals in connection therewith, shall be limited 

to not more than 20 hours, to be equally divided between, and controlled 

by, the majority leader and the minority leader or their designees. 

‘‘(C) DEBATE ON MOTION OR APPEAL.—Debate in the Senate on any debatable motion or appeal in connection with a resolution shall be limited to not 

more than 1 hour, to be equally divided between, and controlled by, the 

mover and the manager of the resolution, except that in the event the manager of the resolution is in favor of any such motion or appeal, the time 

in opposition thereto, shall be controlled by the minority leader or his desVerDate Sep 11 2014 00:26 Jul 06, 2018 Jkt 079006 PO 00000 Frm 00006 Fmt 6659 Sfmt 6621 E:\HR\OC\HR804P1.XXX HR804P1

lotter on DSKBCFDHB2PROD with REPORTS
7 

ignee. Such leaders, or either of them, may, from time under their control 

on the passage of a resolution, allot additional time to any Senator during 

the consideration of any debatable motion or appeal. 

‘‘(D) MOTION TO LIMIT DEBATE.—A motion in the Senate to further limit 

debate on a resolution, debatable motion, or appeal is not debatable. No 

amendment to, or motion to recommit, a resolution is in order in the Senate. 

‘‘(7) PROCEDURES IN THE SENATE.— 

‘‘(A) PROCEDURES.—Except as otherwise provided in this section, the following procedures shall apply in the Senate to a resolution to which this 

subsection applies: 

‘‘(i)(I) Except as provided in subclause (II), a resolution that has 

passed the House of Representatives shall, when received in the Senate, be referred to the Committee on Banking, Housing, and Urban Affairs for consideration in accordance with this subsection. 

‘‘(II) If a resolution to which this subsection applies was introduced 

in the Senate before receipt of a resolution that has passed the House 

of Representatives, the resolution from the House of Representatives 

shall, when received in the Senate, be placed on the calendar. If this 

subclause applies, the procedures in the Senate with respect to a resolution introduced in the Senate that contains the identical matter as 

the resolution that passed the House of Representatives shall be the 

same as if no resolution had been received from the House of Representatives, except that the vote on passage in the Senate shall be on 

the resolution that passed the House of Representatives. 

‘‘(ii) If the Senate passes a resolution before receiving from the House 

of Representatives a joint resolution that contains the identical matter, 

the joint resolution shall be held at the desk pending receipt of the 

joint resolution from the House of Representatives. Upon receipt of the 

joint resolution from the House of Representatives, such joint resolution shall be deemed to be read twice, considered, read the third time, 

and passed. 

‘‘(B) NON-IDENTICAL RESOLUTIONS.—If the texts of joint resolutions described in this subsection concerning any matter are not identical— 

‘‘(i) the Senate shall vote passage on the resolution introduced in the 

Senate; and 

‘‘(ii) the text of the joint resolution passed by the Senate shall, immediately upon its passage (or, if later, upon receipt of the joint resolution 

passed by the House), be substituted for the text of the joint resolution 

passed by the House of Representatives, and such resolution, as 

amended, shall be returned with a request for a conference between the 

two Houses. 

‘‘(C) CONSIDERATION OF VETO MESSAGE.—Consideration in the Senate of 

any veto message with respect to a joint resolution described in paragraph 

(2), including consideration of all debatable motions and appeals in connection therewith, shall be limited to 10 hours, to be equally divided between, 

and controlled by, the majority leader and the minority leader or their designees. 

‘‘(8) COMPUTATION OF PERIOD.—For purposes of paragraph (1)(A) of this subsection and paragraph (2)(A) of subsection (c), the 90-day period referred to in 

such paragraph shall be computed by excluding— 

‘‘(A) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the 

Congress sine die; and 

‘‘(B) any Saturday and Sunday, not excluded under subparagraph (A), 

when either House is not in session. 

‘‘(9) EXERCISE OF RULEMAKING POWER.—This subsection is enacted by the 

Congress— 

‘‘(A) as an exercise of the rulemaking power of the House of Representatives and the Senate, respectively, and as such they are deemed a part of 

the rules of each House, respectively, but applicable only with respect to the 

procedure to be followed in that House in the case of resolutions described 

in paragraph (2); and they supersede other rules only to the extent that 

they are inconsistent therewith; and 

‘‘(B) with full recognition of the constitutional right of either House to 

change the rules (so far as relating to the procedure of that House) at any 

time, in the same manner and to the same extent as in the case of any 

other rule of that House. 


lotter on DSKBCFDHB2PROD with REPORTS
8 

‘‘(e) REQUIREMENTS FOR CONSULTATIONS.—Throughout the negotiations of a covered agreement, parties representing the Federal Government shall closely consult 

and coordinate with, and include in such meetings, State insurance commissioners 

or, at the option of the State insurance commissioners, designees of the insurance 

commissioners acting at their direction.’’. 

PURPOSE AND SUMMARY

On December 4, 2017, Representative Sean Duffy introduced 

H.R. 4537, the ‘‘International Insurance Standards Act of 2017’’ to 

preserve the State-based system of insurance regulation and provide greater oversight and transparency on international insurance 

standard negotiations. 

H.R. 4537 requires that: (1) any such agreement entered into by 

entities representing the United States may not be agreed to unless 

it is consistent with existing federal and state law as well as recognizing existing Federal and State laws on the regulation of insurance; (2) federal entities participating in negotiations must coordinate and consult with state insurance commissioners; (3) Congress 

must be consulted on negotiations prior to negotiations taking 

place, as well as during and prior to entering into an agreement; 

(4) authority is granted to Congress to conduct a ‘‘fast-tracked’’ disapproval process; and (5) Congress has similar disapproval authority on covered agreements. 

BACKGROUND AND NEED FOR LEGISLATION

For nearly 150 years, U.S. insurance companies of every kind— 

including property-casualty, life, reinsurance, health, and auto— 

have been regulated primarily by the states. Congress and the 

states have occasionally reviewed the effectiveness of the statebased regulation of insurance and coordinated efforts to achieve 

greater regulatory uniformity. In 1945, Congress passed the 

McCarran-Ferguson Act (15 U.S.C. 1011 et seq.), which confirmed 

the states’ regulatory authority over insurance except where a federal law expressly provides otherwise. 

The Dodd-Frank Wall Street Reform and Consumer Protection 

Act (Dodd-Frank Act) (Pub. L. No. 111–203) enlarged the federal 

government’s role in the insurance industry by creating a federal 

office specifically tasked with insurance matters. The Dodd-Frank 

Act established a Federal Insurance Office (FIO) at the U.S. Department of the Treasury (Treasury) and charged the FIO director 

with representing the interests of U.S. insurers during the negotiation of international agreements and advising the Office of the U.S. 

Trade Representative (USTR) during trade negotiations. 

The United States’ state-based regulatory framework is the 

strongest and most robust insurance regulatory architecture in the 

world. No other system of insurance regulation combines the statebased focus on policyholder protection with the four, interconnected 

aspects of consumer protection, solvency protection, market-conduct 

protection, and resolution protection. 

However, critics of the current U.S. negotiating platform argue 

that international insurance standards negotiations could be used 

as a ‘‘back-door’’ method to implement European insurance standards in the United States. The European insurance regulatory 

model is bank-centric and less policyholder friendly than the U.S. 

insurance regulatory regime. H.R. 4537 would provide increased 


lotter on DSKBCFDHB2PROD with REPORTS
9 

transparency throughout the negotiation process and authorizes an 

approval authority for Congress to ensure that international negotiations recognize the primacy of the current U.S. insurance regulatory framework. 

On an ongoing basis, representatives from the United States are 

involved in negotiations regarding global insurance standards in 

international forums, including the International Association of Insurance Supervisors (IAIS) in Basel, Switzerland. The IAIS is a 

voluntary membership-driven organization of insurance supervisors 

and regulators from over 190 jurisdictions in more than 140 countries. The IAIS does not have executive powers, rather its role is 

to develop regulatory guidelines and best practices for national insurance supervisors to adopt. The outcomes of these discussions 

could have a considerable impact on U.S. insurance companies, 

markets, policyholders and consumers. H.R. 4537 would ensure 

that the representatives from the United States would maintain a 

strong, unified voice that will ensure that the successful, statebased, policy-holder centric system of insurance regulation is the 

model and basis for any international discussions. 

As the IAIS negotiates global capital standards, governance, and 

market conduct, H.R. 4537 would position the U.S. to participate 

in the discussions and protect it from international agreements 

that could be detrimental to U.S. insurers, policyholders and markets. 

HEARINGS

The Committee on Financial Services’ Subcommittee on Housing 

and Insurance held a hearing examining matters relating to H.R. 

4537 on October 24, 2017. 

COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on December 12, 2017 and ordered H.R. 4537 to be reported favorably to 

the House as amended by a recorded vote of 56 yeas to 4 nays 

(Record vote no. FC–135), a quorum being present. Before the motion to report was offered, the Committee adopted an amendment 

offered by Mr. Duffy by voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. The sole recorded 

vote was on a motion by Chairman Hensarling to report the bill favorably to the House as amended. The motion was agreed to by a 

recorded vote of 56 yeas to 4 nays (Record vote no. FC–135), a 

quorum being present. 


lotter on DSKBCFDHB2PROD with REPORTS
10 


lotter on DSKBCFDHB2PROD with REPORTSInsert offset folio 12 here HR804P1.001
11 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the findings and recommendations of the Committee based on oversight activities under clause 2(b)(1) of rule X 

of the Rules of the House of Representatives, are incorporated in 

the descriptive portions of this report. 

PERFORMANCE GOALS AND OBJECTIVES

With respect to clause 3(c)(4) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the bill contains no measure that authorizes funding, so no statement of general performance goals and objectives for which any measure authorizes funding is required. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATES

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, February 8, 2018. 

Hon. JEB HENSARLING, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4537, the International 

Insurance Standards Act of 2017. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Matthew Pickford. 

Sincerely, 

KEITH HALL, Director. 

Enclosure. 

H.R. 4537—International Insurance Standards Act of 2017 

H.R. 4537 would require negotiators of international insurance 

agreements to oppose any proposal that is inconsistent with existing federal and state laws. The bill would require negotiators to 

consult with state insurance commissioners and the Congress. The 

bill also would provide the Congress with a process to disapprove 

of any international insurance agreement. 


lotter on DSKBCFDHB2PROD with REPORTS
12 

Any budgetary effects of enacting H.R. 4537 would depend, in 

part, on how often the United States negotiates international insurance agreements and how frequently the negotiators must consult and coordinate with state insurance commissioners. CBO has 

no basis for predicting that frequency but expects that the cost of 

such consultations would be less than $500,000 per year. 

Enacting H.R. 4537 would not affect direct spending or revenues; 

therefore, pay-as-you-go procedures do not apply. 

CBO estimates that enacting H.R. 4537 would not increase net 

direct spending or on-budget deficits in any of the four consecutive 

10-year periods beginning in 2028. 

H.R. 4537 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act. 

The CBO staff contact for this estimate is Matthew Pickford. The 

estimate was approved by H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

This information is provided in accordance with section 423 of 

the Unfunded Mandates Reform Act of 1995. 

The Committee has determined that the bill does not contain 

Federal mandates on the private sector. The Committee has determined that the bill does not impose a Federal intergovernmental 

mandate on State, local, or tribal governments. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of the section 102(b)(3) of the 

Congressional Accountability Act. 

EARMARK IDENTIFICATION

With respect to clause 9 of rule XXI of the Rules of the House 

of Representatives, the Committee has carefully reviewed the provisions of the bill and states that the provisions of the bill do not 

contain any congressional earmarks, limited tax benefits, or limited 

tariff benefits within the meaning of the rule. 

DUPLICATION OF FEDERAL PROGRAMS

In compliance with clause 3(c)(5) of rule XIII of the Rules of the 

House of Representatives, the Committee states that no provision 

of the bill establishes or reauthorizes: (1) a program of the Federal 

Government known to be duplicative of another Federal program; 

(2) a program included in any report from the Government Accountability Office to Congress pursuant to section 21 of Public 

Law 111–139; or (3) a program related to a program identified in 

the most recent Catalog of Federal Domestic Assistance, published 

pursuant to the Federal Program Information Act (Pub. L. No. 95– 

220, as amended by Pub. L. No. 98–169). 


lotter on DSKBCFDHB2PROD with REPORTS
13 

DISCLOSURE OF DIRECTED RULEMAKING

Pursuant to section 3(i) of H. Res. 5, (115th Congress), the following statement is made concerning directed rulemakings: The 

Committee estimates that the bill requires no directed rulemakings 

within the meaning of such section. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section cites H.R. 4537 as the ‘‘International Insurance 

Standards Act of 2017’’. 

Section 2. Congressional findings 

This section acknowledges that the State-based system for insurance regulation in the United States has fostered an open and competitive marketplace with a diversity of insurance products to benefit policyholders and consumers. The section also finds that the 

State-based system of insurance regulation protects policyholders 

by regulating to ensure the insurer’s ability to pay claims, which 

has been a hallmark of the success of the current United States insurance regulatory regime. Further adds that the Dodd-Frank Wall 

Street Reform and Consumer Protection Act (Public Law 111–203) 

reaffirmed the State-based insurance regulatory system. 

Section 3. Requirement that insurance standards reflect United 

States policy 

This section requires that any party negotiating international insurance standards, on behalf of the Federal Government, may not 

vote in favor of any agreement if it is inconsistent or does not reflect the current United States system of insurance regulation including the primacy of policyholder protection in solvency regulation. It codifies the primacy of the United States’ system of insurance regulation during international insurance negotiations. Additionally, this section specifies that the Secretary of the Treasury, 

during negotiations, only represents the views of the Department 

of the Treasury. Nothing in this section shall be construed to prevent participation in negotiations of any proposed agreement or 

standard. 

Section 4. State insurance regulator involvement in international 

standard setting 

This section requires entities representing the Federal Government during international insurance negotiations to closely consult 

with state insurance regulators, which includes coordination, and 

inclusion in meetings. State insurance commissioners will have the 

authority to submit designees in their stead. 

Section 5. Consultation with Congress 

This Section requires those representatives of the Federal government entering into international negotiations on insurance to 

first notify the relevant Congressional committees (House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs) prior to initiating any discussions 

on international standards, during negotiations, and prior to entering into an agreement. Written consultation with Congress inVerDate Sep 11 2014 00:26 Jul 06, 2018 Jkt 079006 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR804P1.XXX HR804P1

lotter on DSKBCFDHB2PROD with REPORTS
14 

cludes: (1) the intention of the United States to participate in international negotiations; (2) the nature and objectives of such negotiations; (3) how the agreement will be implemented; including how 

it is consistent with existing federal and state laws; (4) the impact 

on the Competitiveness of U.S. insurers; and, (5) the impact on 

U.S. consumers. This section also requires the Secretary of Treasury to consult with the Federal Advisory Committee on Insurance 

before entering into an agreement under section 3 of this Act. The 

Administration must submit the final text of the negotiation to 

Congress for a 90 day layover for Congressional review before signing the agreement. 

Section 6. Congressional review 

This section provides Congress with ‘‘fast-track’’ procedures for 

disapproval of the international negotiated agreement. H.R. 4537 

would provide for a joint resolution to be introduced within 60 days 

from the date the Administration submits the agreement to Congress. Should the relevant Committees fail to report the resolution, 

a privileged motion to discharge the Committees is in order. 

Section 7. Covered agreements 

Amends the Dodd-Frank Act and provides negotiating authority 

to the Secretary of the Treasury, instead of the Director of the Federal Insurance Office (FIO). Going forward, covered agreements 

would not include new prudential requirements for U.S. insurers. 

Additionally, this section requires Federal negotiators to closely 

consult and coordinate with state insurance commissioners, or their 

designees, and also include them in meetings. This section also provides Congress with a submission and layover period as well as a 

fast-tracked disapproval process for covered agreements. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

and existing law in which no change is proposed is shown in 

roman): 

TITLE 31, UNITED STATES CODE 

* * * * * * * 

SUBTITLE I—GENERAL 

* * * * * * * 


lotter on DSKBCFDHB2PROD with REPORTS
15 

CHAPTER 3—DEPARTMENT OF THE TREASURY 

* * * * * * * 

SUBCHAPTER I—ORGANIZATION 

* * * * * * * 

§ 313. Federal Insurance Office 

(a) ESTABLISHMENT.—There is established within the Department of the Treasury the Federal Insurance Office. 

(b) LEADERSHIP.—The Office shall be headed by a Director, who 

shall be appointed by the Secretary of the Treasury. The position 

of Director shall be a career reserved position in the Senior Executive Service, as that position is defined under section 3132 of title 

5, United States Code. 

(c) FUNCTIONS.— (1) AUTHORITY PURSUANT TO DIRECTION OF SECRETARY.—The 

Office, pursuant to the direction of the Secretary, shall have 

the authority— 

(A) to monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the United States financial system; 

(B) to monitor the extent to which traditionally underserved communities and consumers, minorities (as such 

term is defined in section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 

U.S.C. 1811 note)), and low- and moderate-income persons 

have access to affordable insurance products regarding all 

lines of insurance, except health insurance; 

(C) to recommend to the Financial Stability Oversight 

Council that it designate an insurer, including the affiliates of such insurer, as an entity subject to regulation as 

a nonbank financial company supervised by the Board of 

Governors pursuant to title I of the Dodd-Frank Wall 

Street Reform and Consumer Protection Act; 

(D) to assist the Secretary in administering the Terrorism Insurance Program established in the Department 

of the Treasury under the Terrorism Risk Insurance Act of 

2002 (15 U.S.C. 6701 note); 

(E) to coordinate Federal efforts and develop Federal policy on prudential aspects of international insurance matters, including representing the Department of the Treasury of the United States, as appropriate, in the International Association of Insurance Supervisors (or a successor entity) and assisting the Secretary in negotiating 

covered agreements (as such term is defined in subsection 

(r)); 

(F) to determine, in accordance with subsection (f), 

whether State insurance measures are preempted by covered agreements; 

(G) to consult with the States (including State insurance 

regulators) regarding insurance matters of national importance and prudential insurance matters of international 

importance; and 


lotter on DSKBCFDHB2PROD with REPORTS
16 

(H) to perform such other related duties and authorities 

as may be assigned to the Office by the Secretary. 

(2) ADVISORY FUNCTIONS.—The Office shall advise the Secretary on major domestic and prudential international insurance policy issues. 

(3) ADVISORY CAPACITY ON COUNCIL.—The Director shall 

serve 

in an advisory capacity on the Financial Stability Oversight Council established under the Financial Stability Act of 2010. 

(d) SCOPE.—The authority of the Office shall extend to all lines 

of insurance except— 

(1) health insurance, as determined by the Secretary in coordination with the Secretary of Health and Human Services 

based on section 2791 of the Public Health Service Act (42 

U.S.C. 300gg-91); 

(2) long-term care insurance, except long-term care insurance 

that is included with life or annuity insurance components, as 

determined by the Secretary in coordination with the Secretary 

of Health and Human Services, and in the case of long-term 

care insurance that is included with such components, the Secretary shall coordinate with the Secretary of Health and 

Human Services in performing the functions of the Office; and 

(3) crop insurance, as established by the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.). 

(e) GATHERING OF INFORMATION.— (1) IN GENERAL.—In carrying out the functions required 

under subsection (c), the Office may— 

(A) receive and collect data and information on and from 

the insurance industry and insurers; 

(B) enter into information-sharing agreements; 

(C) analyze and disseminate data and information; and 

(D) issue reports regarding all lines of insurance except 

health insurance. 

(2) COLLECTION OF INFORMATION FROM INSURERS AND AFFILIATES.— 

(A) IN GENERAL.—Except as provided in paragraph (3), 

the Office may require an insurer, or any affiliate of an insurer, to submit such data or information as the Office 

may reasonably require in carrying out the functions described under subsection (c). 

(B) RULE OF CONSTRUCTION.—Notwithstanding any other 

provision of this section, for purposes of subparagraph (A), 

the term ‘‘insurer’’ means any entity that writes insurance 

or reinsures risks and issues contracts or policies in 1 or 

more States. 

(3) EXCEPTION FOR SMALL INSURERS.—Paragraph (2) shall 

not apply with respect to any insurer or affiliate thereof that 

meets a minimum size threshold that the Office may establish, 

whether by order or rule. 

(4) ADVANCE COORDINATION.—Before collecting any data or 

information under paragraph (2) from an insurer, or affiliate of 

an insurer, the Office shall coordinate with each relevant Federal agency and State insurance regulator (or other relevant 

Federal or State regulatory agency, if any, in the case of an affiliate of an insurer) and any publicly available sources to deVerDate Sep 11 2014 00:26 Jul 06, 2018 Jkt 079006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR804P1.XXX HR804P1

lotter on DSKBCFDHB2PROD with REPORTS
17 

termine if the information to be collected is available from, and 

may be obtained in a timely manner by, such Federal agency 

or State insurance regulator, individually or collectively, other 

regulatory agency, or publicly available sources. If the Director 

determines that such data or information is available, and may 

be obtained in a timely manner, from such an agency, regulator, regulatory agency, or source, the Director shall obtain 

the data or information from such agency, regulator, regulatory 

agency, or source. If the Director determines that such data or 

information is not so available, the Director may collect such 

data or information from an insurer (or affiliate) only if the Director complies with the requirements of subchapter I of chapter 35 of title 44, United States Code (relating to Federal information policy; commonly known as the Paperwork Reduction 

Act), in collecting such data or information. Notwithstanding 

any other provision of law, each such relevant Federal agency 

and State insurance regulator or other Federal or State regulatory agency is authorized to provide to the Office such data 

or information. 

(5) CONFIDENTIALITY.— (A) RETENTION OF PRIVILEGE.—The submission of any 

nonpublicly available data and information to the Office 

under this subsection shall not constitute a waiver of, or 

otherwise affect, any privilege arising under Federal or 

State law (including the rules of any Federal or State 

court) to which the data or information is otherwise subject. 

(B) CONTINUED APPLICATION OF PRIOR CONFIDENTIALITY

AGREEMENTS.—Any requirement under Federal or State 

law to the extent otherwise applicable, or any requirement 

pursuant to a written agreement in effect between the 

original source of any nonpublicly available data or information and the source of such data or information to the 

Office, regarding the privacy or confidentiality of any data 

or information in the possession of the source to the Office, 

shall continue to apply to such data or information after 

the data or information has been provided pursuant to this 

subsection to the Office. 

(C) INFORMATION-SHARING AGREEMENT.—Any data or information obtained by the Office may be made available to 

State insurance regulators, individually or collectively, 

through an information-sharing agreement that— 

(i) shall comply with applicable Federal law; and 

(ii) shall not constitute a waiver of, or otherwise affect, any privilege under Federal or State law (including the rules of any Federal or State court) to which 

the data or information is otherwise subject. 

(D) AGENCY DISCLOSURE REQUIREMENTS.—Section 552 of 

title 5, United States Code, shall apply to any data or information submitted to the Office by an insurer or an affiliate of an insurer. 

(6) SUBPOENAS AND ENFORCEMENT.—The Director shall have 

the power to require by subpoena the production of the data 

or information requested under paragraph (2), but only upon 

a written finding by the Director that such data or information 


lotter on DSKBCFDHB2PROD with REPORTS
18 

is required to carry out the functions described under subsection (c) and that the Office has coordinated with such regulator or agency as required under paragraph (4). Subpoenas 

shall bear the signature of the Director and shall be served by 

any person or class of persons designated by the Director for 

that purpose. In the case of contumacy or failure to obey a subpoena, the subpoena shall be enforceable by order of any appropriate district court of the United States. Any failure to 

obey the order of the court may be punished by the court as 

a contempt of court. 

(f) PREEMPTION OF STATE INSURANCE MEASURES.— (1) STANDARD.—A State insurance measure shall be preempted pursuant to this section or section 314 if, and only to 

the extent that the øDirector¿ Secretary determines, in accordance with this subsection, that the measure— 

(A) results in less favorable treatment of a non-United 

States insurer domiciled in a foreign jurisdiction that is 

subject to a covered agreement than a United States insurer domiciled, licensed, or otherwise admitted in that 

State; and 

(B) is inconsistent with a covered agreement. 

(2) DETERMINATION.— (A) NOTICE OF POTENTIAL INCONSISTENCY.—Before making any determination under paragraph (1), the øDirector¿ 

Secretary shall— 

(i) notify and consult with the appropriate State regarding any potential inconsistency or preemption; 

(ii) notify and consult with the United States Trade 

Representative regarding any potential inconsistency 

or preemption; 

(iii) cause to be published in the Federal Register 

notice of the issue regarding the potential inconsistency or preemption, including a description of each 

State insurance measure at issue and any applicable 

covered agreement; 

(iv) provide interested parties a reasonable opportunity to submit written comments to the Office; and 

(v) consider any comments received. 

(B) SCOPE OF REVIEW.—For purposes of this subsection, 

any determination of the øDirector¿ Secretary regarding 

State insurance measures, and any preemption under 

paragraph (1) as a result of such determination, shall be 

limited to the subject matter contained within the covered 

agreement involved and shall achieve a level of protection 

for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under 

State insurance or reinsurance regulation. 

(C) NOTICE OF DETERMINATION OF INCONSISTENCY.— 

Upon making any determination under paragraph (1), the 

øDirector¿ Secretary shall— 

(i) notify the appropriate State of the determination 

and the extent of the inconsistency; 

(ii) establish a reasonable period of time, which shall 

not be less than 30 days, before the determination 

shall become effective; and 


lotter on DSKBCFDHB2PROD with REPORTS
19 

(iii) notify the Committees on Financial Services and 

Ways and Means of the House of Representatives and 

the Committees on Banking, Housing, and Urban Affairs and Finance of the Senate. 

(3) NOTICE OF EFFECTIVENESS.—Upon the conclusion of the 

period referred to in paragraph (2)(C)(ii), if the basis for such 

determination still exists, the determination shall become effective and the øDirector¿ Secretary shall— 

(A) cause to be published a notice in the Federal Register that the preemption has become effective, as well as 

the effective date; and 

(B) notify the appropriate State. 

(4) LIMITATION.—No State may enforce a State insurance 

measure to the extent that such measure has been preempted 

under this subsection. 

(g) APPLICABILITY OF ADMINISTRATIVE PROCEDURES ACT.—Determinations of inconsistency made pursuant to subsection (f)(2) shall 

be subject to the applicable provisions of subchapter II of chapter 

5 of title 5, United States Code (relating to administrative procedure), and chapter 7 of such title (relating to judicial review), except that in any action for judicial review of a determination of inconsistency, the court shall determine the matter de novo. 

(h) REGULATIONS, POLICIES, AND PROCEDURES.—The Secretary 

may issue orders, regulations, policies, and procedures to implement this section. 

(i) CONSULTATION.—The Director shall consult with State insurance regulators, individually or collectively, to the extent the Director determines appropriate, in carrying out the functions of the Office. 

(j) SAVINGS PROVISIONS.—Nothing in this section shall— 

(1) preempt— 

(A) any State insurance measure that governs any insurer’s rates, premiums, underwriting, or sales practices; 

(B) any State coverage requirements for insurance; 

(C) the application of the antitrust laws of any State to 

the business of insurance; or 

(D) any State insurance measure governing the capital 

or solvency of an insurer, except to the extent that such 

State insurance measure results in less favorable treatment of a non-United State insurer than a United States 

insurer; 

(2) be construed to alter, amend, or limit any provision of 

the Consumer Financial Protection Agency Act of 2010; or 

(3) affect the preemption of any State insurance measure 

otherwise inconsistent with and preempted by Federal law. 

(k) RETENTION OF EXISTING STATE REGULATORY AUTHORITY.— 

Nothing in this section or section 314 shall be construed to establish or provide the Office or the Department of the Treasury with 

general supervisory or regulatory authority over the business of insurance. 

(l) RETENTION OF AUTHORITY OF FEDERAL FINANCIAL REGULATORY AGENCIES.—Nothing in this section or section 314 shall be 

construed to limit the authority of any Federal financial regulatory 

agency, including the authority to develop and coordinate policy, 

negotiate, and enter into agreements with foreign governments, auVerDate Sep 11 2014 00:26 Jul 06, 2018 Jkt 079006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR804P1.XXX HR804P1

lotter on DSKBCFDHB2PROD with REPORTS
20 

thorities, regulators, and multinational regulatory committees and 

to preempt State measures to affect uniformity with international 

regulatory agreements. 

(m) RETENTION OF AUTHORITY OF UNITED STATES TRADE REP- RESENTATIVE.—Nothing in this section or section 314 shall be construed to affect the authority of the Office of the United States 

Trade Representative pursuant to section 141 of the Trade Act of 

1974 (19 U.S.C. 2171) or any other provision of law, including authority over the development and coordination of United States 

international trade policy and the administration of the United 

States trade agreements program. 

(n) ANNUAL REPORTS TO CONGRESS.— (1) SECTION 313(F) REPORTS.—Beginning September 30, 2011, 

the Director shall submit a report on or before September 30 

of each calendar year to the President and to the Committees 

on Financial Services and Ways and Means of the House of 

Representatives and the Committees on Banking, Housing, and 

Urban Affairs and Finance of the Senate on any actions taken 

by the Office pursuant to subsection (f) (regarding preemption 

of inconsistent State insurance measures). 

(2) INSURANCE INDUSTRY.—Beginning September 30, 2011, 

the Director shall submit a report on or before September 30 

of each calendar year to the President and to the Committee 

on Financial Services of the House of Representatives and the 

Committee on Banking, Housing, and Urban Affairs of the 

Senate on the insurance industry and any other information as 

deemed relevant by the Director or requested by such Committees. 

(o) REPORTS ON U.S. AND GLOBAL REINSURANCE MARKET.—The 

Director shall submit to the Committee on Financial Services of the 

House of Representatives and the Committee on Banking, Housing, 

and Urban Affairs of the Senate— 

(1) a report received not later than September 30, 2012, describing the breadth and scope of the global reinsurance market and the critical role such market plays in supporting insurance in the United States; and 

(2) a report received not later than January 1, 2013, and updated not later than January 1, 2015, describing the impact of 

part II of the Nonadmitted and Reinsurance Reform Act of 

2010 on the ability of State regulators to access reinsurance information for regulated companies in their jurisdictions. 

(p) STUDY AND REPORT ON REGULATION OF INSURANCE.— 

(1) IN GENERAL.—Not later than 18 months after the date of 

enactment of this section, the Director shall conduct a study 

and submit a report to Congress on how to modernize and improve the system of insurance regulation in the United States. 

(2) CONSIDERATIONS.—The study and report required under 

paragraph (1) shall be based on and guided by the following 

considerations: 

(A) Systemic risk regulation with respect to insurance. 

(B) Capital standards and the relationship between capital allocation and liabilities, including standards relating 

to liquidity and duration risk. 

(C) Consumer protection for insurance products and 

practices, including gaps in State regulation. 


lotter on DSKBCFDHB2PROD with REPORTS
21 

(D) The degree of national uniformity of State insurance 

regulation. 

(E) The regulation of insurance companies and affiliates 

on a consolidated basis. 

(F) International coordination of insurance regulation. 

(3) ADDITIONAL FACTORS.—The study and report required 

under paragraph (1) shall also examine the following factors: 

(A) The costs and benefits of potential Federal regulation 

of insurance across various lines of insurance (except 

health insurance). 

(B) The feasibility of regulating only certain lines of insurance at the Federal level, while leaving other lines of 

insurance to be regulated at the State level. 

(C) The ability of any potential Federal regulation or 

Federal regulators to eliminate or minimize regulatory arbitrage. 

(D) The impact that developments in the regulation of 

insurance in foreign jurisdictions might have on the potential Federal regulation of insurance. 

(E) The ability of any potential Federal regulation or 

Federal regulator to provide robust consumer protection 

for policyholders. 

(F) The potential consequences of subjecting insurance 

companies to a Federal resolution authority, including the 

effects of any Federal resolution authority— 

(i) on the operation of State insurance guaranty 

fund systems, including the loss of guaranty fund coverage if an insurance company is subject to a Federal 

resolution authority; 

(ii) on policyholder protection, including the loss of 

the priority status of policyholder claims over other 

unsecured general creditor claims; 

(iii) in the case of life insurance companies, on the 

loss of the special status of separate account assets 

and separate account liabilities; and 

(iv) on the international competitiveness of insurance companies. 

(G) Such other factors as the Director determines necessary or appropriate, consistent with the principles set 

forth in paragraph (2). 

(4) REQUIRED RECOMMENDATIONS.—The study and report required under paragraph (1) shall also contain any legislative, 

administrative, or regulatory recommendations, as the Director 

determines appropriate, to carry out or effectuate the findings 

set forth in such report. 

(5) CONSULTATION.—With respect to the study and report required under paragraph (1), the Director shall consult with the 

State insurance regulators, consumer organizations, representatives of the insurance industry and policyholders, and other 

organizations and experts, as appropriate. 

(q) USE OF EXISTING RESOURCES.—To carry out this section, the 

Office may employ personnel, facilities, and any other resource of 

the Department of the Treasury available to the Secretary and the 

Secretary shall dedicate specific personnel to the Office. 


lotter on DSKBCFDHB2PROD with REPORTS
22 

(r) DEFINITIONS.—In this section and section 314, the following 

definitions shall apply: 

(1) AFFILIATE.—The term ‘‘affiliate’’ means, with respect to 

an insurer, any person who controls, is controlled by, or is 

under common control with the insurer. 

(2) COVERED AGREEMENT.—The term ‘‘covered agreement’’ 

means a written bilateral or multilateral agreement regarding 

prudential measures with respect to the business of insurance 

or reinsurance that— 

(A) is entered into between the United States and one or 

more foreign governments, authorities, or regulatory entities; øand¿ 

(B) relates to the recognition of prudential measures 

with respect to the business of insurance or reinsurance 

that achieves a level of protection for insurance or reinsurance consumers that is substantially equivalent to the 

level of protection achieved under State insurance or reinsurance regulationø.¿; and 

(C) applies only on a prospective basis. 

(3) INSURER.—The term ‘‘insurer’’ means any person engaged 

in the business of insurance, including reinsurance. 

(4) FEDERAL FINANCIAL REGULATORY AGENCY.—The term 

‘‘Federal financial regulatory agency’’ means the Department of 

the Treasury, the Board of Governors of the Federal Reserve 

System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the 

Federal Deposit Insurance Corporation, the Federal Housing 

Finance Agency, or the National Credit Union Administration. 

(5) NON-UNITED STATES INSURER.—The term ‘‘non-United 

States insurer’’ means an insurer that is organized under the 

laws of a jurisdiction other than a State, but does not include 

any United States branch of such an insurer. 

(6) OFFICE.—The term ‘‘Office’’ means the Federal Insurance 

Office established by this section. 

(7) STATE INSURANCE MEASURE.—The term ‘‘State insurance 

measure’’ means any State law, regulation, administrative ruling, bulletin, guideline, or practice relating to or affecting prudential measures applicable to insurance or reinsurance. 

(8) STATE INSURANCE REGULATOR.—The term ‘‘State insurance regulator’’ means any State regulatory authority responsible for the supervision of insurers. 

(9) SUBSTANTIALLY EQUIVALENT TO THE LEVEL OF PROTECTION ACHIEVED.—The term ‘‘substantially equivalent to the 

level of protection achieved’’ means the prudential measures of 

a foreign government, authority, or regulatory entity achieve a 

similar outcome in consumer protection as the outcome 

achieved under State insurance or reinsurance regulation. 

(10) UNITED STATES INSURER.—The term ‘‘United States insurer’’ means— 

(A) an insurer that is organized under the laws of a 

State; or 

(B) a United States branch of a non-United States insurer. 


lotter on DSKBCFDHB2PROD with REPORTS
23 

(s) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated for the Office for each fiscal year such sums as 

may be necessary. 

§ 314. Covered agreements 

(a) AUTHORITY.—The Secretary and the United States Trade Representative are authorized, jointly, to negotiate and enter into covered agreements on behalf of the United States. 

(b) REQUIREMENTS FOR CONSULTATION WITH CONGRESS.— (1) IN GENERAL.—Before initiating negotiations to enter into 

a covered agreement under subsection (a), during such negotiations, and before entering into any such agreement, the Secretary and the United States Trade Representative shall jointly consult with the Committee on Financial Services and the 

Committee on Ways and Means of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs and the Committee on Finance of the Senate. 

(2) SCOPE.—The consultation described in paragraph (1) 

shall include consultation with respect to— 

(A) the nature of the agreement; 

(B) how and to what extent the agreement will achieve 

the applicable purposes, policies, priorities, and objectives 

of section 313 and this section; and 

(C) the implementation of the agreement, including the 

general effect of the agreement on existing State ølaws¿ 

and Federal law, and the nature of any changes in the laws 

of the United States or the administration of such laws 

that would be required to carry out a covered agreement. (3) ACCESS TO NEGOTIATING TEXTS AND OTHER DOCUMENTS.— Congressional committees and staff with proper security clearances shall be given access to United States negotiating proposals, consolidated draft texts, and other pertinent documents 

related to the negotiations, including classified materials. 

(c) SUBMISSION AND LAYOVER PROVISIONS.—A covered agreement 

under subsection (a) may enter into force with respect to the 

United States øonly if—¿ only if, before signing the final legal text 

or otherwise entering into the agreement— 

(1) the Secretary and the United States Trade Representative jointly submit to the øcongressional committees specified 

in subsection (b)(1)¿ congressional committees and to staff with 

proper security clearances, on a day on which both Houses of 

Congress are in session, a copy of the final legal text of the 

agreement; and 

ø(2) a period of 90 calendar days beginning on the date on 

which the copy of the final legal text of the agreement is submitted to the congressional committees under paragraph (1) 

has expired.¿ 

(2)(A) the 90-day period beginning on the date on which the 

copy of the final legal text of the agreement is submitted under 

paragraph (1) to the congressional committees and staff has expired; and 

(B) if the President has vetoed a joint resolution described in 

subsection (d)(2) relating to the agreement, the 15-day period 

described in subsection (d)(1)(B)(ii) has expired. 

(d) CONGRESSIONAL REVIEW.— 


lotter on DSKBCFDHB2PROD with REPORTS
24 

(1) DISAPPROVAL.— (A) IN GENERAL.—A covered agreement shall have no 

force and effect in the United States if, before the expiration 

of the 90-day period beginning on the day that the final 

legal text of the agreement is submitted to the Congress 

pursuant to subsection (c), a joint resolution described in 

paragraph (2) is enacted into law. 

(B) VETO.—If the President vetoes the joint resolution, the 

joint resolution shall be treated as enacted into law before 

the end of the 90-day period under subparagraph (A) if 

both Houses of Congress vote to override such veto on or before the later of— 

(i) the last day of such 90-day period; or 

(ii) the last day of the 15-day period (excluding any 

day described in paragraph (8)) beginning on the date 

the Congress receives the veto message from the President. 

(2) CONTENTS OF RESOLUTIONS.—For purposes of this subsection, the term ‘‘resolution’’ means only a joint resolution of 

the two Houses of the Congress, that is introduced during the 

60-day period beginning upon the submission to the Congress 

pursuant to subsection (c) of the covered agreement to which 

such resolution relates, and the matter after the resolving clause 

of which is as follows: ‘‘That the Congress does not approve the 

covered agreement transmitted to the Congress pursuant to section 314(c) of title 31, United States Code, on llllll.’’, 

the blank space being filled with the appropriate date. 

(3) REFERENCE TO COMMITTEES.—All resolutions introduced 

in the House of Representatives shall be referred to the Committee on Financial Services and all resolutions introduced in 

the Senate shall be referred to the Committee on Banking, 

Housing, and Urban Affairs. 

(4) DISCHARGE OF COMMITTEES.— (A) IN GENERAL.—If the committee of either House to 

which a resolution has been referred has not reported it at 

the end of 30 days after its introduction, not counting any 

day which is excluded under paragraph (8), it is in order 

to move either to discharge the committee from further consideration of the resolution or to discharge the committee 

from further consideration of any other resolution introduced with respect to the same matter, except that a motion 

to discharge— 

(i) may only be made on the second legislative day 

after the calendar day on which the Member making 

the motion announces to the House his intention to do 

so; and 

(ii) is not in order after the committee has reported 

a resolution with respect to the same matter. 

(B) PRIVILEGE.—A motion to discharge under subparagraph (A) may be made only by an individual favoring the 

resolution, and is highly privileged in the House and privileged in the Senate; and debate thereon shall be limited to 

not more than 1 hour, the time to be divided in the House 

equally between those favoring and those opposing the resolution, and to be divided in the Senate equally between, 


lotter on DSKBCFDHB2PROD with REPORTS
25 

and controlled by, the majority leader and the minority 

leader or their designees. An amendment to the motion is 

not in order, and it is not in order to move to reconsider 

the vote by which the motion is agreed to or disagreed to. 

(5) FLOOR CONSIDERATION IN THE HOUSE.— 

(A) IN GENERAL.—A motion in the House of Representatives to proceed to the consideration of a resolution shall be 

highly privileged and not debatable. An amendment to the 

motion shall not be in order, nor shall it be in order to 

move to reconsider the vote by which the motion is agreed 

to or disagreed to. 

(B) DEBATE; NO RECONSIDERATION.—Debate in the House 

of Representatives on a resolution shall be limited to not 

more than 20 hours, which shall be divided equally between those favoring and those opposing the resolution. A 

motion further to limit debate shall not be debatable. No 

amendment to, or motion to recommit, the resolution shall 

be in order. It shall not be in order to move to reconsider 

the vote by which a resolution is agreed to or disagreed to. 

(C) CONSIDERATION OF OTHER MOTIONS.—Motions to 

postpone, made in the House of Representatives with respect to the consideration of a resolution, and motions to 

proceed to the consideration of other business, shall be decided without debate. 

(D) APPEALS TO DECISIONS OF CHAIR.—All appeals from 

the decisions of the Chair relating to the application of the 

Rules of the House of Representatives to the procedure relating to a resolution shall be decided without debate. 

(E) APPLICABILITY OF RULES.—Except to the extent specifically provided in the preceding provisions of this paragraph, consideration of a resolution in the House of Representatives shall be governed by the Rules of the House of 

Representatives applicable to other resolutions in similar 

circumstances. 

(6) FLOOR CONSIDERATION IN THE SENATE.— 

(A) MOTION TO PROCEED.—A motion in the Senate to proceed to the consideration of a resolution shall be privileged. 

An amendment to the motion shall not be in order, nor 

shall it be in order to move to reconsider the vote by which 

the motion is agreed to or disagreed to. 

(B) DEBATE ON RESOLUTION.—Debate in the Senate on a 

resolution, and all debatable motions and appeals in connection therewith, shall be limited to not more than 20 

hours, to be equally divided between, and controlled by, the 

majority leader and the minority leader or their designees. 

(C) DEBATE ON MOTION OR APPEAL.—Debate in the Senate on any debatable motion or appeal in connection with 

a resolution shall be limited to not more than 1 hour, to be 

equally divided between, and controlled by, the mover and 

the manager of the resolution, except that in the event the 

manager of the resolution is in favor of any such motion or 

appeal, the time in opposition thereto, shall be controlled by 

the minority leader or his designee. Such leaders, or either 

of them, may, from time under their control on the passage 


lotter on DSKBCFDHB2PROD with REPORTS
26 

of a resolution, allot additional time to any Senator during 

the consideration of any debatable motion or appeal. 

(D) MOTION TO LIMIT DEBATE.—A motion in the Senate 

to further limit debate on a resolution, debatable motion, or 

appeal is not debatable. No amendment to, or motion to recommit, a resolution is in order in the Senate. 

(7) PROCEDURES IN THE SENATE.— (A) PROCEDURES.—Except as otherwise provided in this 

section, the following procedures shall apply in the Senate 

to a resolution to which this subsection applies: 

(i)(I) Except as provided in subclause (II), a resolution that has passed the House of Representatives 

shall, when received in the Senate, be referred to the 

Committee on Banking, Housing, and Urban Affairs 

for consideration in accordance with this subsection. 

(II) If a resolution to which this subsection applies 

was introduced in the Senate before receipt of a resolution that has passed the House of Representatives, the 

resolution from the House of Representatives shall, 

when received in the Senate, be placed on the calendar. 

If this subclause applies, the procedures in the Senate 

with respect to a resolution introduced in the Senate 

that contains the identical matter as the resolution that 

passed the House of Representatives shall be the same 

as if no resolution had been received from the House of 

Representatives, except that the vote on passage in the 

Senate shall be on the resolution that passed the House 

of Representatives. 

(ii) If the Senate passes a resolution before receiving 

from the House of Representatives a joint resolution 

that contains the identical matter, the joint resolution 

shall be held at the desk pending receipt of the joint 

resolution from the House of Representatives. Upon receipt of the joint resolution from the House of Representatives, such joint resolution shall be deemed to be 

read twice, considered, read the third time, and passed. 

(B) NON-IDENTICAL RESOLUTIONS.—If the texts of joint 

resolutions described in this subsection concerning any 

matter are not identical— 

(i) the Senate shall vote passage on the resolution introduced in the Senate; and 

(ii) the text of the joint resolution passed by the Senate shall, immediately upon its passage (or, if later, 

upon receipt of the joint resolution passed by the 

House), be substituted for the text of the joint resolution 

passed by the House of Representatives, and such resolution, as amended, shall be returned with a request 

for a conference between the two Houses. 

(C) CONSIDERATION OF VETO MESSAGE.—Consideration in 

the Senate of any veto message with respect to a joint resolution described in paragraph (2), including consideration 

of all debatable motions and appeals in connection therewith, shall be limited to 10 hours, to be equally divided between, and controlled by, the majority leader and the minority leader or their designees. 


lotter on DSKBCFDHB2PROD with REPORTS
27 

(8) COMPUTATION OF PERIOD.—For purposes of paragraph 

(1)(A) of this subsection and paragraph (2)(A) of subsection (c), 

the 90-day period referred to in such paragraph shall be computed by excluding— 

(A) the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or an adjournment of the Congress sine die; and 

(B) any Saturday and Sunday, not excluded under subparagraph (A), when either House is not in session. 

(9) EXERCISE OF RULEMAKING POWER.—This subsection is enacted by the Congress— 

(A) as an exercise of the rulemaking power of the House 

of Representatives and the Senate, respectively, and as such 

they are deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to 

be followed in that House in the case of resolutions described in paragraph (2); and they supersede other rules 

only to the extent that they are inconsistent therewith; and 

(B) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner and 

to the same extent as in the case of any other rule of that 

House. 

(e) REQUIREMENTS FOR CONSULTATIONS.—Throughout the negotiations of a covered agreement, parties representing the Federal 

Government shall closely consult and coordinate with, and include 

in such meetings, State insurance commissioners or, at the option 

of the State insurance commissioners, designees of the insurance 

commissioners acting at their direction. 

* * * * * * * 


lotter on DSKBCFDHB2PROD with REPORTS
28 


lotter on DSKBCFDHB2PROD with REPORTSInsert offset folio 33 here HR804P1.002
29 


lotter on DSKBCFDHB2PROD with REPORTSInsert offset folio 34 here HR804P1.003
30 


lotter on DSKBCFDHB2PROD with REPORTSInsert offset folio 35 here HR804P1.004
31 


lotter on DSKBCFDHB2PROD with REPORTSInsert offset folio 36 here HR804P1.005