II 

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. 

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

3 SECTION 1. FINDINGS AND PURPOSE. 

4 (a) FINDINGS.—Congress finds that— 

5 (1) insurance companies are regulated by the 

6 State insurance authorities of the States in which 


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•S 1369 IS

1 the insurance companies are domiciled or licensed to 

2 sell insurance; 

3 (2) as exemplified by section 5 of the Bank 

4 Holding Company Act of 1956 (12 U.S.C. 1844), 

5 Congress has long recognized and sought to preserve 

6 the State-based insurance regime; 

7 (3) Senate Report 111–176, relating to the Re8 storing American Financial Stability Act of 2010 (S. 

9 3217), directed Federal banking agencies to consider 

10 the existing regulatory requirements, accounting 

11 treatment, and unique capital structures of insur12 ance companies in developing capital requirements 

13 for insurance entities; and 

14 (4) while section 171 of the Dodd-Frank Wall 

15 Street Reform and Consumer Protection Act (12 

16 U.S.C. 5371) directs Federal banking agencies to es17 tablish minimum risk-based capital and leverage 

18 standards on a consolidated basis, Congress did not 

19 intend for Federal banking regulators to discard the 

20 State risk-based capital system in favor of a banking 

21 capital regime. 

22 (b) PURPOSE.—The purpose of this Act is to provide 

23 additional flexibility for the Board of Governors of the 

24 Federal Reserve System to establish capital standards 


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•S 1369 IS

1 that are properly tailored to the unique characteristics of 

2 the business of insurance. 

3 SEC. 2. EXCLUSION OF INSURERS FROM BANK CAPITAL 

4 RULES. 

5 Section 171 of the Dodd-Frank Wall Street Reform 

6 and Consumer Protection Act (12 U.S.C. 5371) is amend7 ed— 

8 (1) in subsection (a), by adding at the end the 

9 following: 

10 ‘‘(4) BUSINESS OF INSURANCE.—The term 

11 ‘business of insurance’ has the same meaning as in 

12 section 1002. 

13 ‘‘(5) PRIMARILY ENGAGED IN THE BUSINESS

14 OF INSURANCE.—A company is ‘primarily engaged 

15 in the business of insurance’ if— 

16 ‘‘(A) the annual gross revenues derived by 

17 the company and all subsidiaries of the com18 pany from the business of insurance represent 

not less than 2 19 ⁄3 of the consolidated annual 

20 gross revenues of the company; or 

21 ‘‘(B) the consolidated assets of the com22 pany and all subsidiaries of the company that 

23 relate to the business of insurance represent not 

less than 2 24 ⁄3 of the consolidated assets of the 

25 company.’’; and 


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•S 1369 IS

1 (2) in subsection (b)(5)— 

2 (A) in subparagraph (B), by striking ‘‘or’’; 

3 (B) in subparagraph (C), by striking the 

4 period at the end and inserting a semicolon; 

5 and 

6 (C) by adding at the end the following: 

7 ‘‘(D) any depository institution holding 

8 company that— 

9 ‘‘(i) is primarily engaged in the busi10 ness of insurance; or 

11 ‘‘(ii) is an insurance underwriting 

12 company at the holding company level and 

13 was in existence on July 21, 2010; or 

14 ‘‘(E) any nonbank financial company su15 pervised by the Board of Governors that, to16 gether with its subsidiaries, is primarily en17 gaged in the business of insurance.’’. 

Æ 


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