IIB 

115TH CONGRESS 

2D SESSION H. R. 5059 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 17, 2018 

Received; read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

AN ACT 

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. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘State Insurance Regu3 lation Preservation Act’’. 

4 SEC. 2. SUPERVISION OF INSURANCE SAVINGS AND LOAN 

5 HOLDING COMPANIES. 

6 (a) DEFINITIONS.—Section 10(a)(1) of the Home 

7 Owners’ Loan Act (12 U.S.C. 1467a(a)(1)) is amended 

8 by inserting at the end the following: 

9 ‘‘(K) DOMICILE.—The term ‘domicile’ 

10 means the State in which an insurance under11 writing company or the holding company for 

12 such company is incorporated, chartered, or or13 ganized. 

14 ‘‘(L) BUSINESS OF INSURANCE.—The term 

15 ‘business of insurance’ means any activity that 

16 is regulated in accordance with the relevant 

17 State insurance laws and regulations, including 

18 the writing of insurance and the reinsuring of 

19 risks. 

20 ‘‘(M) INSURANCE SAVINGS AND LOAN

21 HOLDING COMPANY.—The term ‘insurance sav22 ings and loan holding company’ means— 

23 ‘‘(i) a savings and loan holding com24 pany with 75 percent or more of its total 

25 consolidated assets in an insurance under26 writing company (or insurance underVerDate Sep 11 2014 01:14 Sep 18, 2018 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5059.RFS H5059

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1 writing companies), other than assets asso2 ciated with insurance for credit risk, dur3 ing the 4 most recent consecutive quarters, 

4 as calculated in accordance with Generally 

5 Accepted Accounting Principles or the 

6 Statutory Accounting Principles in accord7 ance with State law; 

8 ‘‘(ii) a company that— 

9 ‘‘(I) was a savings and loan hold10 ing company as of July 21, 2010, and 

11 through date of enactment of this 

12 clause; and 

13 ‘‘(II) was not subject to the 

14 Basel III capital regulation promul15 gated by the Board of Governors of 

16 the Federal Reserve System and the 

17 Comptroller of the Currency on Octo18 ber 11, 2013 (78 Fed. Reg. 62018), 

19 because the savings and loan holding 

20 company held 25 percent or more of 

21 its total consolidated assets in subsidi22 aries that are insurance underwriting 

23 companies (other than assets associ24 ated with insurance for credit risk); or 


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1 ‘‘(iii) a top-tier savings and loan hold2 ing company that— 

3 ‘‘(I) was registered as a savings 

4 and loan holding company before July 

5 21, 2010; and 

6 ‘‘(II) is a New York not-for-prof7 it corporation formed for the purpose 

8 of holding the stock of a New York in9 surance company. 

10 ‘‘(N) INSURANCE UNDERWRITING COM11 PANY.—The term ‘insurance underwriting com12 pany’ means an insurer that is subject to regu13 lation by a State insurance authority of the in14 surer’s domicile. 

15 ‘‘(O) STATE INSURANCE AUTHORITY.—The 

16 term ‘State insurance authority’ means the 

17 State insurance authority of the State in which 

18 an insurance underwriting company or holding 

19 company for such company is domiciled. 

20 ‘‘(P) TOP-TIER SAVINGS AND LOAN HOLD21 ING COMPANY.—The term ‘top-tier savings and 

22 loan holding company’ means the ultimate par23 ent company in a savings and loan holding com24 pany structure.’’. 


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1 (b) REGISTRATION.—Section 10(b)(1) of the Home 

2 Owners’ Loan Act (12 U.S.C. 1467a(b)(1)) is amended 

3 by inserting at the end the following new sentence: 

4 ‘‘A savings and loan holding company that is an in5 surance savings and loan holding company shall register 

6 as an insurance savings and loan holding company.’’. 

7 (c) REPORTS.—Section 10(b)(2) of the Home Own8 ers’ Loan Act (12 U.S.C. 1467a(b)(2)) is amended by add9 ing at the end the following new subparagraph: 

10 ‘‘(D) INSURANCE SAVINGS AND LOAN

11 HOLDING COMPANIES.—The Board, to the full12 est extent possible, shall request reports and 

13 other information filed by insurance savings 

14 and loan holding companies and any insurance 

15 underwriting company that is a subsidiary of 

16 such company with other Federal authorities 

17 and the State insurance authority for such com18 pany before requesting such reports or informa19 tion from the insurance savings and loan hold20 ing company or any insurance underwriting 

21 company that is a subsidiary of such company. 

22 ‘‘(E) RULE OF CONSTRUCTION.—Nothing 

23 in this section may be construed as prohibiting 

24 the Board from requesting reports and other in25 formation that is not otherwise collected and 


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1 shared with other Federal or State authori2 ties.’’. 

3 (d) BOOKS AND RECORDS.—Section 10(b)(3) of the 

4 Home Owners’ Loan Act (12 U.S.C. 1467a(b)(3)) is 

5 amended— 

6 (1) by striking ‘‘Each’’ and inserting the fol7 lowing: 

8 ‘‘(A) IN GENERAL.—Each’’; and 

9 (2) by inserting at the end the following new 

10 subparagraph: 

11 ‘‘(B) INSURANCE SAVINGS AND LOAN

12 HOLDING COMPANIES.—The Board, to the full13 est extent possible, shall align any prescribed 

14 recordkeeping requirements for an insurance 

15 savings and loan holding company with the rec16 ordkeeping requirements imposed by the State 

17 insurance authority of such company and any 

18 insurance underwriting company that is a sub19 sidiary of such company.’’. 

20 (e) EXAMINATIONS.—Section 10(b)(4)(C) of the 

21 Home Owners’ Loan Act (12 U.S.C. 1467a(b)(4)(C)) is 

22 amended— 

23 (1) in clause (i), by striking the word ‘‘and’’ at 

24 the end; 


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1 (2) in clause (ii), by striking the period at the 

2 end and inserting ‘‘; and’’; and 

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

4 clause: 

5 ‘‘(iii) INSURANCE SAVINGS AND LOAN

6 HOLDING COMPANIES.— 

7 ‘‘(I) COORDINATION.—The 

8 Board, to the fullest extent possible, 

9 shall coordinate examinations of an 

10 insurance savings and loan holding 

11 company in conjunction with the State 

12 insurance authority of such company 

13 and any insurance underwriting com14 pany that is a subsidiary of such com15 pany and other State and Federal au16 thorities in order to minimize the po17 tential for duplication and conflict be18 tween the examinations conducted by 

19 the Board and the examinations con20 ducted by other State and Federal au21 thorities. 

22 ‘‘(II) SCOPE AND FREQUENCY.— 

23 Following public notice and comment, 

24 the Board shall establish a schedule 

25 for the frequency and the scope of exVerDate Sep 11 2014 01:14 Sep 18, 2018 Jkt 079200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5059.RFS H5059

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1 aminations of insurance savings and 

2 loan holding companies that is con3 sistent with the supervisory frame4 work required by paragraph (7).’’. 

5 (f) SUPERVISION.—Section 10(b) of the Home Own6 ers’ Loan Act (12 U.S.C. 1467a(b)) is amended by insert7 ing at the end the following new paragraph: 

8 ‘‘(7) INSURANCE SAVINGS AND LOAN HOLDING

9 COMPANIES.— 

10 ‘‘(A) TAILORED SUPERVISION.—The 

11 Board, by rule, shall establish a supervisory 

12 framework for insurance savings and loan hold13 ing companies that— 

14 ‘‘(i) is tailored to the unique risks, op15 erations, and activities of insurance sav16 ings and loan holding companies; and 

17 ‘‘(ii) to the fullest extent possible, and 

18 consistent with the safe and sound oper19 ation of insurance savings and loan holding 

20 companies, does not unnecessarily dupli21 cate the supervision of insurance under22 writing companies by the State insurance 

23 authorities for such companies or insur24 ance underwriting companies that are sub25 sidiaries of such companies. 


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1 ‘‘(B) REVIEW OF SUPERVISORY GUID2 ANCE.—Following public notice and comment, 

3 the Board shall review and revise supervisory 

4 policy letters and guidance applicable to insur5 ance savings and loan holding companies to en6 sure that such letters and guidance are not in7 consistent with the supervisory framework re8 quired by this paragraph.’’. 

9 SEC. 3. ASSESSMENTS AND FEES FOR INSURANCE SAVINGS 

10 AND LOAN HOLDING COMPANIES. 

11 Section 11(s) of the Federal Reserve Act (12 U.S.C. 

12 248(s)), which relates to assessments and fees, is amended 

13 by inserting at the end the following new paragraph: 

14 ‘‘(4) EXCLUDED ASSETS.—For purposes of 

15 paragraph (2)(B), the total consolidated assets of an 

16 insurance savings and loan holding company, as de17 fined in section 10(a)(1)(L) of the Home Owners’ 

18 Loan Act (12 U.S.C. 1467a(a)(1)(L)), shall not in19 clude assets attributable to the business of insurance 

20 conducted by such company or any affiliate of such 

21 company, other than assets associated with insur22 ance for credit risk.’’. 

23 SEC. 4. IMPLEMENTATION. 

24 (a) IMPLEMENTATION OF SUPERVISORY FRAME25 WORK.—The Board shall establish the supervisory frameVerDate Sep 11 2014 01:14 Sep 18, 2018 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5059.RFS H5059

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1 work required by section 10(b)(7) of the Home Owners’ 

2 Loan Act (12 U.S.C. 1467a(b)(7)), as added by this Act, 

3 within 24 months of the date of enactment of this Act. 

4 (b) REVIEW OF SUPERVISORY GUIDANCE.—The 

5 Board shall complete the review of supervisory policy let6 ters and policy guidance required by section 10(b)(7) of 

7 the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(7)), as 

8 added by this Act, within 30 months of the date of enact9 ment of this Act. 

10 (c) REPORT TO CONGRESS.—The Board, no later 

11 than 36 months after the date of enactment of this Act, 

12 shall submit a report to the Committee on Banking, Hous13 ing, and Urban Affairs of the Senate and the Committee 

14 on Financial Services of the House of Representatives on 

15 the implementation of this Act. 

16 (d) BOARD DEFINED.—As used in this section, the 

17 term ‘‘Board’’ means the Board of Governors of the Fed18 eral Reserve System. 

19 SEC. 5. RELATIONSHIP TO OTHER LAWS. 

20 This Act and the amendments made by this Act shall 

21 not limit any authority over insurance savings and loan 

22 holding companies (as defined under section 10(a)(1) of 

23 the Home Owners’ Loan Act) that is provided by a Fed24 eral law other than the Home Owners’ Loan Act. 


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1 SEC. 6. RULEMAKING AUTHORITY. 

2 The Board may issue regulations and orders as may 

3 be necessary to— 

4 (1) administer and carry out this Act and the 

5 amendments made by this Act; and 

6 (2) prevent evasions of this Act and the amend7 ments made by this Act. 

8 SEC. 7. RULE OF CONSTRUCTION. 

9 Nothing in this Act or the amendments made by this 

10 Act may be construed to affect the authority of the Board 

11 of Governors of the Federal Reserve System over any sub12 sidiary of an insurance savings and loan holding company 

13 that is not an insurance underwriting company (as such 

14 terms are defined, respectively, under section 10(a)(1) of 

15 the Home Owners’ Loan Act). 

Passed the House of Representatives September 12, 

2018. 

Attest: KAREN L. HAAS, 

Clerk. 


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