IB 

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] 


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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. 


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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘State Insurance Regula5 tion Preservation Act’’. 

6 SEC. 2. SUPERVISION OF INSURANCE SAVINGS AND LOAN 

7 HOLDING COMPANIES. 

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

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

10 inserting at the end the following: 

11 ‘‘(K) BUSINESS OF INSURANCE.—The term 

12 ‘business of insurance’ means any activity that 

13 is regulated in accordance with the relevant 

14 State insurance law, including the writing of in15 surance and the reinsuring of risks. 

16 ‘‘(L) INSURANCE SAVINGS AND LOAN HOLD17 ING COMPANY.—The term ‘insurance savings and 

18 loan holding company’ means— 

19 ‘‘(i) a savings and loan holding com20 pany with 75 percent or more of its total 

21 consolidated assets in an insurance under22 writing company (or insurance under23 writing companies), other than assets asso24 ciated with insurance for credit risk, during 

25 the 4 most recent consecutive quarters, as 


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1 calculated in accordance with Generally Ac2 cepted Accounting Principles or the Statu3 tory Accounting Principles in accordance 

4 with State law; 

5 ‘‘(ii) a company that— 

6 ‘‘(I) was a savings and loan hold7 ing company as of July 21, 2010, and 

8 through date of enactment of this 

9 clause; and 

10 ‘‘(II) was not subject to the Basel 

11 III capital regulation promulgated by 

12 the Board of Governors of the Federal 

13 Reserve System and the Comptroller of 

14 the Currency on October 11, 2013 (78 

15 Fed. Reg. 62018), because the savings 

16 and loan holding company held 25 

17 percent or more of its total consoli18 dated assets in subsidiaries that are 

19 insurance underwriting companies 

20 (other than assets associated with in21 surance for credit risk); or 

22 ‘‘(iii) a top-tier savings and loan hold23 ing company that— 


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1 ‘‘(I) was registered as a savings 

2 and loan holding company before July 

3 21, 2010; and 

4 ‘‘(II) is a New York not-for-profit 

5 corporation formed for the purpose of 

6 holding the stock of a New York insur7 ance company. 

8 ‘‘(M) INSURANCE UNDERWRITING COM9 PANY.—The term ‘insurance underwriting com10 pany’ means an entity that is subject to regula11 tion by a State insurance authority. 

12 ‘‘(N) STATE INSURANCE AUTHORITY.—The 

13 term ‘State insurance authority’ means the chief 

14 insurance regulatory authority of a State. 

15 ‘‘(O) TOP-TIER SAVINGS AND LOAN HOLDING

16 COMPANY.—The term ‘top-tier savings and loan 

17 holding company’ means the ultimate parent 

18 company in a savings and loan holding com19 pany structure.’’. 

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

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

22 inserting at the end the following new sentence: ‘‘A savings 

23 and loan holding company that is an insurance savings 

24 and loan holding company shall register as an insurance 

25 savings and loan holding company.’’. 


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1 (c) REPORTS.—Section 10(b)(2) of the Home Owners’ 

2 Loan Act (12 U.S.C. 1467a(b)(2)) is amended by adding 

3 at the end the following new subparagraph: 

4 ‘‘(D) INSURANCE SAVINGS AND LOAN HOLD5 ING COMPANIES.—The Board, to the fullest extent 

6 possible, shall request reports and other informa7 tion filed by insurance savings and loan holding 

8 companies with other Federal or State authori9 ties from such other authorities before requesting 

10 such reports or information from insurance sav11 ings and loan holding companies.’’. 

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

13 Home Owners’ Loan Act (12 U.S.C. 1467a(b)(3)) is amend14 ed— 

15 (1) by striking ‘‘Each’’ and inserting the fol16 lowing: 

17 ‘‘(A) IN GENERAL.—Each’’; and 

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

19 subparagraph: 

20 ‘‘(B) INSURANCE SAVINGS AND LOAN HOLD21 ING COMPANIES.—The Board, to the fullest extent 

22 possible, shall align any prescribed recordkeeping 

23 requirements for insurance savings and loan 

24 holding companies with the recordkeeping reVerDate Sep 11 2014 02:36 Sep 13, 2018 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H5059.RH H5059

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1 quirements imposed by State insurance authori2 ties.’’. 

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

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

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

6 the end; 

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

8 end and inserting ‘‘; and’’; and 

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

10 clause: 

11 ‘‘(iii) INSURANCE SAVINGS AND LOAN

12 HOLDING COMPANIES.— 

13 ‘‘(I) COORDINATION.—The Board, 

14 to the fullest extent possible, shall con15 duct examinations of insurance savings 

16 and loan holding companies in con17 junction with other State and Federal 

18 authorities in order to minimize the 

19 potential for duplication and conflict 

20 between the inspections conducted by 

21 the Board and the examinations con22 ducted by other State and Federal au23 thorities. 

24 ‘‘(II) SCOPE AND FREQUENCY.— 

25 Following public notice and comment, 


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1 the Board shall establish a schedule for 

2 the frequency and the scope of exami3 nations of insurance savings and loan 

4 holding companies that is consistent 

5 with the supervisory framework re6 quired by paragraph (7).’’. 

7 (f) SUPERVISION.—Section 10(b) of the Home Owners’ 

8 Loan Act (12 U.S.C. 1467a(b)) is amended by inserting at 

9 the end the following new paragraph: 

10 ‘‘(7) INSURANCE SAVINGS AND LOAN HOLDING

11 COMPANIES.— 

12 ‘‘(A) TAILORED SUPERVISION.—The Board, 

13 by rule, shall establish a supervisory framework 

14 for insurance savings and loan holding compa15 nies that— 

16 ‘‘(i) is tailored to the unique risks, op17 erations, and activities of insurance savings 

18 and loan holding companies; and 

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

20 consistent with the safe and sound oper21 ation of insurance savings and loan holding 

22 companies, does not unnecessarily duplicate 

23 the supervision of insurance underwriting 

24 companies by State insurance authorities. 


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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 para15 graph (2)(B), the total consolidated assets of an in16 surance 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 insurance 

22 for credit risk.’’. 

23 SEC. 4. IMPLEMENTATION. 

24 (a) IMPLEMENTATION OF SUPERVISORY FRAME25 WORK.—The Board shall establish the supervisory frameVerDate Sep 11 2014 02:36 Sep 13, 2018 Jkt 079200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H5059.RH 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 Board 

5 shall complete the review of supervisory policy letters and 

6 policy guidance required by section 10(b)(7) of the Home 

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

8 Act, within 30 months of the date of enactment of this Act. 

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

10 36 months after the date of enactment of this Act, shall sub11 mit a report to the Committee on Banking, Housing, and 

12 Urban Affairs of the Senate and the Committee on Finan13 cial Services of the House of Representatives on the imple14 mentation of this Act. 

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

16 term ‘‘Board’’ means the Board of Governors of the Federal 

17 Reserve System. 

18 SEC. 5. RELATIONSHIP TO OTHER LAWS. 

19 This Act and the amendments made by this Act shall 

20 not limit any authority over insurance savings and loan 

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

22 Home Owners’ Loan Act) that is provided by a Federal law 

23 other than this Act. 


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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 reother purposes. ance savings and loan holding companies, and for spect to the registration and supervision of insurSEPTEMBER 12, 2018 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


pamtmann on DSKBFK8HB2PROD with BILLS