I 

115TH CONGRESS 

2D SESSION H. R. 5059 

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 

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. 

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 Regu5 lation Preservation Act’’. 


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1 SEC. 2. SUPERVISION OF INSURANCE SAVINGS AND LOAN 

2 HOLDING COMPANIES. 

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

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

5 by adding at the end the following: 

6 ‘‘(K) INSURANCE SAVINGS AND LOAN

7 HOLDING COMPANY.—The term ‘insurance sav8 ings and loan holding company’ means— 

9 ‘‘(i) a top-tier savings and loan hold10 ing company that is an insurance under11 writing company; 

12 ‘‘(ii) a savings and loan holding com13 pany that held 75 percent or more of its 

14 total consolidated assets in an insurance 

15 underwriting company or insurance under16 writing companies, other than assets asso17 ciated with insurance for credit risk, dur18 ing the 4 most recent consecutive quarters, 

19 as calculated in accordance with generally 

20 accepted accounting principles or the Stat21 utory Accounting Principles of the Na22 tional Association of Insurance Commis23 sioners, as applicable; or 

24 ‘‘(iii) a top-tier savings and loan hold25 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-prof5 it corporation formed for the purpose 

6 of holding the stock of a New York in7 surance company. 

8 ‘‘(L) INSURANCE UNDERWRITING COM9 PANY.—The term ‘insurance underwriting com10 pany’ means an entity that is— 

11 ‘‘(i) engaged in the business of insur12 ance; 

13 ‘‘(ii) subject to regulation by a State 

14 insurance regulator; and 

15 ‘‘(iii) covered by a State law that is 

16 designed to specifically deal with the reha17 bilitation, liquidation, or insolvency of an 

18 insurance company. 

19 ‘‘(M) MATERIAL SUBSIDIARY.—The term 

20 ‘material subsidiary’— 

21 ‘‘(i) means a subsidiary that has— 

22 ‘‘(I) off-balance sheet activities 

23 not less than $5,000,000,000; 

24 ‘‘(II) equity capital not less than 

25 5 percent of the consolidated equity 


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1 capital of the top-tier holding com2 pany; or 

3 ‘‘(III) consolidated operating rev4 enue not less than 5 percent of the 

5 consolidated operating revenue of the 

6 top-tier holding company; and 

7 ‘‘(ii) does not include a subsidiary 

8 that is— 

9 ‘‘(I) a functionally regulated sub10 sidiary; 

11 ‘‘(II) a nonoperating shell hold12 ing company; or 

13 ‘‘(III) primarily engaged in— 

14 ‘‘(aa) servicing activities for 

15 the holding company or its affili16 ates, including the activities de17 scribed in section 225.22(b)(2) of 

18 title 12, Code of Federal Regula19 tions; or 

20 ‘‘(bb) internal financial ac21 tivities, as that term is defined in 

22 section 10A(a).’’. 

23 (b) REGISTRATION AND EXAMINATION.—Section 

24 10(b) of the Home Owners’ Loan Act (12 U.S.C. 

25 1467a(b)) is amended— 


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1 (1) in paragraph (1), by inserting ‘‘, and which 

2 shall, if applicable, provide for a savings and loan 

3 holding company to register as an insurance savings 

4 and loan holding company’’ before the period at the 

5 end of the first sentence; 

6 (2) in paragraph (2)— 

7 (A) in subparagraph (A), by striking 

8 ‘‘Each savings and loan holding company’’ and 

9 inserting ‘‘Subject to subparagraph (D), each 

10 savings and loan holding company’’; 

11 (B) in subparagraph (C)— 

12 (i) by striking ‘‘Upon’’ and inserting 

13 the following: 

14 ‘‘(i) IN GENERAL.—Upon’’; and 

15 (ii) by adding at the end the fol16 lowing: 

17 ‘‘(ii) INSURANCE SAVINGS AND LOAN

18 COMPANIES.—In the case of an insurance 

19 savings and loan holding company— 

20 ‘‘(I) clause (i) shall not apply; 

21 and 

22 ‘‘(II) the Board shall submit a 

23 request for any information described 

24 in clauses (i) through (iii) of subparaVerDate Sep 11 2014 02:21 Feb 23, 2018 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H5059.IH H5059

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1 graph (B) to the appropriate Federal 

2 or State regulatory agencies.’’; and 

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

4 ‘‘(D) INSURANCE SAVINGS AND LOAN

5 HOLDING COMPANIES.—An insurance savings 

6 and loan holding company may be required only 

7 to file reports related to— 

8 ‘‘(i) the organizational structure of 

9 the company and any changes in that 

10 structure; 

11 ‘‘(ii) transactions between the com12 pany and its affiliates; 

13 ‘‘(iii) balance sheet and income state14 ments of a material subsidiary of the com15 pany; and 

16 ‘‘(iv) the capital holdings of the com17 pany in relation to applicable minimum 

18 capital standards.’’; 

19 (3) in paragraph (3), by inserting ‘‘, other than 

20 an insurance savings and loan holding company,’’ 

21 after ‘‘company’’; and 

22 (4) in paragraph (4)— 

23 (A) in subparagraph (A), by inserting 

24 ‘‘and subparagraph (D)’’ after ‘‘2010’’; and 

25 (B) by adding at the end the following: 


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1 ‘‘(D) INSURANCE SAVINGS AND LOAN

2 HOLDING COMPANIES.— 

3 ‘‘(i) TAILORED EXAMINATIONS AND

4 SUPERVISION.—Board examinations of, 

5 and supervisory guidance applicable to, an 

6 insurance savings and loan holding com7 pany shall be based upon a supervisory 

8 framework that is— 

9 ‘‘(I) tailored to the risks and ac10 tivities of the business of insurance; 

11 and 

12 ‘‘(II) developed in consultation 

13 with State insurance authorities to en14 sure that such framework does not 

15 duplicate or conflict with State insur16 ance requirements. 

17 ‘‘(ii) EXEMPTION FOR COMPANIES

18 THAT MEET APPLICABLE CAPITAL STAND19 ARDS.—Subject to clause (iii), the Board 

20 shall neither examine nor apply supervisory 

21 guidance to an insurance savings and loan 

22 holding company, or any subsidiary of an 

23 insurance savings and loan holding com24 pany (other than a material subsidiary), if 

25 such company— 


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1 ‘‘(I) meets or exceeds applicable 

2 State insurance capital standards; and 

3 ‘‘(II) meets or exceeds any min4 imum capital standards for an insur5 ance savings and loan holding com6 pany promulgated by the Board under 

7 section 171 of the Financial Stability 

8 Act of 2010 (12 U.S.C. 5371). 

9 ‘‘(iii) CORRECTIVE ACTION PLAN.— 

10 ‘‘(I) IN GENERAL.—If, based 

11 upon a capital report submitted pur12 suant to paragraph (2)(D)(iv), an in13 surance savings and loan holding com14 pany is not in compliance with any 

15 applicable minimum capital standards, 

16 the Board shall provide a notice of 

17 noncompliance to the company and re18 quire the company to submit, within 

19 45 days of the receipt of such notice, 

20 a plan to restore the capital of the 

21 company to a level that meets the ap22 plicable minimum standards not later 

23 than the later of— 


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1 ‘‘(aa) 1 year after the date 

2 on which the plan is submitted; 

3 or 

4 ‘‘(bb) a date determined by 

5 the Board. 

6 ‘‘(II) FAILURE TO SUBMIT

7 PLAN.—If a company fails to submit a 

8 required capital restoration plan, or 

9 fails to restore capital to applicable 

10 minimum standards within the time 

11 period specified in the plan, the 

12 Board, following notice and an oppor13 tunity for a hearing, may prohibit the 

14 application of clause (ii) to the com15 pany until the later of— 

16 ‘‘(aa) the date on which the 

17 company has met applicable min18 imum capital standards for 2 cal19 endar years; or 

20 ‘‘(bb) a date determined by 

21 the Board.’’. 

22 (c) ADMINISTRATION AND ENFORCEMENT.—Section 

23 10(g) of the Home Owners’ Loan Act (12 U.S.C. 

24 1467a(g)) is amended— 


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1 (1) in paragraph (1), by inserting ‘‘In issuing 

2 any regulation, order, or supervisory guidance appli3 cable to an insurance savings and loan holding com4 pany, including a regulation, order, or guidance re5 lated to capital, stress testing, and cybersecurity, the 

6 Board shall tailor such regulation, order, or guid7 ance to the risks and activities of the business of in8 surance and shall consult with State insurance au9 thorities to ensure that the regulation, order, or 

10 guidance does not duplicate or conflict with State in11 surance requirements.’’ after the period at the end; 

12 and 

13 (2) in paragraph (2), by inserting ‘‘In the case 

14 of an insurance savings and loan holding company, 

15 the authority of the Board to conduct investigations 

16 shall be limited to the material subsidiaries of the 

17 insurance savings and loan holding company.’’ after 

18 the period at the end. 

19 (d) INTERMEDIATE HOLDING COMPANIES.—Section 

20 10A(d) of the Home Owners’ Loan Act (12 U.S.C. 

21 1467b(d)) is amended by adding at the end the following: 

22 ‘‘(3) INSURANCE SAVINGS AND LOAN HOLDING

23 COMPANIES.—If the Board requires a grandfathered 

24 unitary savings and loan holding company that is an 

25 insurance savings and loan holding company to esVerDate Sep 11 2014 02:21 Feb 23, 2018 Jkt 079200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5059.IH H5059

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1 tablish an intermediary holding company to engage 

2 in financial activities, the intermediary holding com3 pany shall be treated as an insurance savings and 

4 loan holding company for purposes of supervision 

5 and regulation by the Board.’’. 

6 (e) EMERGENCY SUPERVISORY AUTHORITY.—Sec7 tion 10 of the Home Owners’ Loan Act (12 U.S.C. 1467a) 

8 is amended by adding the following new subsection at the 

9 end thereof: 

10 ‘‘(u) EMERGENCY SUPERVISORY AUTHORITY.—The 

11 Board, by order, may suspend the application of para12 graphs (2)(C)(ii), (2)(D), and (4)(D) of subsection (c) and 

13 the final sentences of paragraphs (1) and (2) of subsection 

14 (g) to an insurance savings and loan holding company and 

15 apply subsection (b)(3) to an insurance savings and loan 

16 holding company if the Board, after consultation with the 

17 State insurance authority for the insurance savings and 

18 loan holding company, reasonably determines that the op19 erations and activities of the insurance savings and loan 

20 holding company pose a serious and imminent risk to the 

21 financial safety and soundness or stability of the insurance 

22 savings and loan holding company’s subsidiary saving as23 sociation.’’. 


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1 SEC. 3. ASSESSMENTS AND FEES FOR INSURANCE SAVINGS 

2 AND LOAN HOLDING COMPANIES. 

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

4 248) is amended, in the second subsection (s) (relating 

5 to assessments), by adding at the end the following: 

6 ‘‘(3) EXCLUDED ASSETS.—With respect to an 

7 insurance savings and loan holding company, as de8 fined in section 10 of the Home Owners’ Loan Act 

9 (12 U.S.C. 1467a), the total consolidated assets de10 scribed in paragraph (2)(B) shall not include any 

11 asset of an insurance company.’’. 

Æ 


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