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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1369 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1369

  To provide additional flexibility to the Board of Governors of the 
Federal Reserve System to establish capital standards that are properly 
 tailored to the unique characteristics of the business of insurance, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2013

  Mr. Brown (for himself, Mr. Johanns, Mr. Kirk, Mr. Tester, and Mr. 
    Toomey) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
  To provide additional flexibility to the Board of Governors of the 
Federal Reserve System to establish capital standards that are properly 
 tailored to the unique characteristics of the business of insurance, 
                        and for other purposes.

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

SECTION 1. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) insurance companies are regulated by the State 
        insurance authorities of the States in which the insurance 
        companies are domiciled or licensed to sell insurance;
            (2) as exemplified by section 5 of the Bank Holding Company 
        Act of 1956 (12 U.S.C. 1844), Congress has long recognized and 
        sought to preserve the State-based insurance regime;
            (3) Senate Report 111-176, relating to the Restoring 
        American Financial Stability Act of 2010 (S. 3217), directed 
        Federal banking agencies to consider the existing regulatory 
        requirements, accounting treatment, and unique capital 
        structures of insurance companies in developing capital 
        requirements for insurance entities; and
            (4) while section 171 of the Dodd-Frank Wall Street Reform 
        and Consumer Protection Act (12 U.S.C. 5371) directs Federal 
        banking agencies to establish minimum risk-based capital and 
        leverage standards on a consolidated basis, Congress did not 
        intend for Federal banking regulators to discard the State 
        risk-based capital system in favor of a banking capital regime.
    (b) Purpose.--The purpose of this Act is to provide additional 
flexibility for the Board of Governors of the Federal Reserve System to 
establish capital standards that are properly tailored to the unique 
characteristics of the business of insurance.

SEC. 2. EXCLUSION OF INSURERS FROM BANK CAPITAL RULES.

    Section 171 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5371) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(4) Business of insurance.--The term `business of 
        insurance' has the same meaning as in section 1002.
            ``(5) Primarily engaged in the business of insurance.--A 
        company is `primarily engaged in the business of insurance' 
        if--
                    ``(A) the annual gross revenues derived by the 
                company and all subsidiaries of the company from the 
                business of insurance represent not less than \2/3\ of 
                the consolidated annual gross revenues of the company; 
                or
                    ``(B) the consolidated assets of the company and 
                all subsidiaries of the company that relate to the 
                business of insurance represent not less than \2/3\ of 
                the consolidated assets of the company.''; and
            (2) in subsection (b)(5)--
                    (A) in subparagraph (B), by striking ``or'';
                    (B) in subparagraph (C), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(D) any depository institution holding company 
                that--
                            ``(i) is primarily engaged in the business 
                        of insurance; or
                            ``(ii) is an insurance underwriting company 
                        at the holding company level and was in 
                        existence on July 21, 2010; or
                    ``(E) any nonbank financial company supervised by 
                the Board of Governors that, together with its 
                subsidiaries, is primarily engaged in the business of 
                insurance.''.
                                 <all>
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