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[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5059 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 728
115th CONGRESS
  2d Session
                                H. R. 5059

                          [Report No. 115-937]

To amend the Home Owners' Loan Act with respect to the registration and 
 supervision of insurance savings and loan holding companies, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           February 15, 2018

  Mr. Rothfus (for himself and Mrs. Beatty) introduced the following 
    bill; which was referred to the Committee on Financial Services

                           September 12, 2018

 Additional sponsors: Mr. Luetkemeyer, Mr. Gonzalez of Texas, and Mr. 
                                  Budd

                           September 12, 2018

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 15, 2018]

_______________________________________________________________________

                                 A BILL

 
To amend the Home Owners' Loan Act with respect to the registration and 
 supervision of insurance savings and loan holding companies, 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. SHORT TITLE.

    This Act may be cited as the ``State Insurance Regulation 
Preservation Act''.

SEC. 2. SUPERVISION OF INSURANCE SAVINGS AND LOAN HOLDING COMPANIES.

    (a) Definitions.--Section 10(a)(1) of the Home Owners' Loan Act (12 
U.S.C. 1467a(a)(1)) is amended by inserting at the end the following:
                    ``(K) Business of insurance.--The term `business of 
                insurance' means any activity that is regulated in 
                accordance with the relevant State insurance law, 
                including the writing of insurance and the reinsuring 
                of risks.
                    ``(L) Insurance savings and loan holding company.--
                The term `insurance savings and loan holding company' 
                means--
                            ``(i) a savings and loan holding company 
                        with 75 percent or more of its total 
                        consolidated assets in an insurance 
                        underwriting company (or insurance underwriting 
                        companies), other than assets associated with 
                        insurance for credit risk, during the 4 most 
                        recent consecutive quarters, as calculated in 
                        accordance with Generally Accepted Accounting 
                        Principles or the Statutory Accounting 
                        Principles in accordance with State law;
                            ``(ii) a company that--
                                    ``(I) was a savings and loan 
                                holding company as of July 21, 2010, 
                                and through date of enactment of this 
                                clause; and
                                    ``(II) was not subject to the Basel 
                                III capital regulation promulgated by 
                                the Board of Governors of the Federal 
                                Reserve System and the Comptroller of 
                                the Currency on October 11, 2013 (78 
                                Fed. Reg. 62018), because the savings 
                                and loan holding company held 25 
                                percent or more of its total 
                                consolidated assets in subsidiaries 
                                that are insurance underwriting 
                                companies (other than assets associated 
                                with insurance for credit risk); or
                            ``(iii) a top-tier savings and loan holding 
                        company that--
                                    ``(I) was registered as a savings 
                                and loan holding company before July 
                                21, 2010; and
                                    ``(II) is a New York not-for-profit 
                                corporation formed for the purpose of 
                                holding the stock of a New York 
                                insurance company.
                    ``(M) Insurance underwriting company.--The term 
                `insurance underwriting company' means an entity that 
                is subject to regulation by a State insurance 
                authority.
                    ``(N) State insurance authority.--The term `State 
                insurance authority' means the chief insurance 
                regulatory authority of a State.
                    ``(O) Top-tier savings and loan holding company.--
                The term `top-tier savings and loan holding company' 
                means the ultimate parent company in a savings and loan 
                holding company structure.''.
    (b) Registration.--Section 10(b)(1) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(b)(1)) is amended by inserting at the end the 
following new sentence: ``A savings and loan holding company that is an 
insurance savings and loan holding company shall register as an 
insurance savings and loan holding company.''.
    (c) Reports.--Section 10(b)(2) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)(2)) is amended by adding at the end the following new 
subparagraph:
                    ``(D) Insurance savings and loan holding 
                companies.--The Board, to the fullest extent possible, 
                shall request reports and other information filed by 
                insurance savings and loan holding companies with other 
                Federal or State authorities from such other 
                authorities before requesting such reports or 
                information from insurance savings and loan holding 
                companies.''.
    (d) Books and Records.--Section 10(b)(3) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(b)(3)) is amended--
            (1) by striking ``Each'' and inserting the following:
                    ``(A) In general.--Each''; and
            (2) by inserting at the end the following new subparagraph:
                    ``(B) Insurance savings and loan holding 
                companies.--The Board, to the fullest extent possible, 
                shall align any prescribed recordkeeping requirements 
                for insurance savings and loan holding companies with 
                the recordkeeping requirements imposed by State 
                insurance authorities.''.
    (e) Examinations.--Section 10(b)(4)(C) of the Home Owners' Loan Act 
(12 U.S.C.1467a(b)(4)(C)) is amended--
            (1) in clause (i), by striking the word ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following new clause:
                            ``(iii) Insurance savings and loan holding 
                        companies.--
                                    ``(I) Coordination.--The Board, to 
                                the fullest extent possible, shall 
                                conduct examinations of insurance 
                                savings and loan holding companies in 
                                conjunction with other State and 
                                Federal authorities in order to 
                                minimize the potential for duplication 
                                and conflict between the inspections 
                                conducted by the Board and the 
                                examinations conducted by other State 
                                and Federal authorities.
                                    ``(II) Scope and frequency.--
                                Following public notice and comment, 
                                the Board shall establish a schedule 
                                for the frequency and the scope of 
                                examinations of insurance savings and 
                                loan holding companies that is 
                                consistent with the supervisory 
                                framework required by paragraph (7).''.
    (f) Supervision.--Section 10(b) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)) is amended by inserting at the end the following new 
paragraph:
            ``(7) Insurance savings and loan holding companies.--
                    ``(A) Tailored supervision.--The Board, by rule, 
                shall establish a supervisory framework for insurance 
                savings and loan holding companies that--
                            ``(i) is tailored to the unique risks, 
                        operations, and activities of insurance savings 
                        and loan holding companies; and
                            ``(ii) to the fullest extent possible, and 
                        consistent with the safe and sound operation of 
                        insurance savings and loan holding companies, 
                        does not unnecessarily duplicate the 
                        supervision of insurance underwriting companies 
                        by State insurance authorities.
                    ``(B) Review of supervisory guidance.--Following 
                public notice and comment, the Board shall review and 
                revise supervisory policy letters and guidance 
                applicable to insurance savings and loan holding 
                companies to ensure that such letters and guidance are 
                not inconsistent with the supervisory framework 
                required by this paragraph.''.

SEC. 3. ASSESSMENTS AND FEES FOR INSURANCE SAVINGS AND LOAN HOLDING 
              COMPANIES.

    Section 11(s) of the Federal Reserve Act (12 U.S.C. 248(s)), which 
relates to assessments and fees, is amended by inserting at the end the 
following new paragraph:
            ``(4) Excluded assets.--For purposes of paragraph (2)(B), 
        the total consolidated assets of an insurance savings and loan 
        holding company, as defined in section 10(a)(1)(L) of the Home 
        Owners' Loan Act (12 U.S.C. 1467a(a)(1)(L)), shall not include 
        assets attributable to the business of insurance conducted by 
        such company or any affiliate of such company, other than 
        assets associated with insurance for credit risk.''.

SEC. 4. IMPLEMENTATION.

    (a) Implementation of Supervisory Framework.--The Board shall 
establish the supervisory framework required by section 10(b)(7) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(b)(7)), as added by this Act, 
within 24 months of the date of enactment of this Act.
    (b) Review of Supervisory Guidance.--The Board shall complete the 
review of supervisory policy letters and policy guidance required by 
section 10(b)(7) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)(7)), 
as added by this Act, within 30 months of the date of enactment of this 
Act.
    (c) Report to Congress.--The Board, no later than 36 months after 
the date of enactment of this Act, shall submit a report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Financial Services of the House of Representatives on the 
implementation of this Act.
    (d) Board Defined.--As used in this section, the term ``Board'' 
means the Board of Governors of the Federal Reserve System.

SEC. 5. RELATIONSHIP TO OTHER LAWS.

    This Act and the amendments made by this Act shall not limit any 
authority over insurance savings and loan holding companies (as defined 
under section 10(a)(1) of the Home Owners' Loan Act) that is provided 
by a Federal law other than this Act.
                                                 Union Calendar No. 728

115th CONGRESS

  2d Session

                               H. R. 5059

                          [Report No. 115-937]

_______________________________________________________________________

                                 A BILL

To amend the Home Owners' Loan Act with respect to the registration and 
 supervision of insurance savings and loan holding companies, and for 
                            other purposes.

_______________________________________________________________________

                           September 12, 2018

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
```