II 

113TH CONGRESS 

2D SESSION S. 2270 

To clarify the application of certain leverage and risk-based requirements 

under the Dodd-Frank Wall Street Reform and Consumer Protection Act. 

IN THE SENATE OF THE UNITED STATES 

APRIL 29, 2014 

Ms. COLLINS (for herself, Mr. BROWN, Mr. JOHANNS, Mr. KIRK, and Mr. 

TESTER) introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To clarify the application of certain leverage and risk-based 

requirements under the Dodd-Frank Wall Street Reform 

and Consumer Protection Act. 

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 ‘‘Insurance Capital 

5 Standards Clarification Act of 2014’’. 


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1 SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE 

2 AND RISK-BASED CAPITAL REQUIREMENTS. 

3 Section 171 of the Dodd-Frank Wall Street Reform 

4 and Consumer Protection Act (12 U.S.C. 5371) is amend5 ed— 

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

7 following: 

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

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

10 section 1002(3). 

11 ‘‘(5) PERSON REGULATED BY A STATE INSUR12 ANCE REGULATOR.—The term ‘person regulated by 

13 a State insurance regulator’ has the same meaning 

14 as in section 1002(22). 

15 ‘‘(6) REGULATED FOREIGN SUBSIDIARY AND

16 REGULATED FOREIGN AFFILIATE.—The terms ‘regu17 lated foreign subsidiary’ and ‘regulated foreign affil18 iate’ mean a person engaged in the business of in19 surance in a foreign country that is regulated by a 

20 foreign insurance regulatory authority that is a 

21 member of the International Association of Insur22 ance Supervisors or other comparable foreign insur23 ance regulatory authority as determined by the 

24 Board of Governors following consultation with the 

25 State insurance regulators, including the lead State 

26 insurance commissioner (or similar State official) of 


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1 the insurance holding company system as deter2 mined by the procedures within the Financial Anal3 ysis Handbook adopted by the National Association 

4 of Insurance Commissioners, where the person, or 

5 its principal United States insurance affiliate, has 

6 its principal place of business or is domiciled, but 

7 only to the extent that— 

8 ‘‘(A) such person acts in its capacity as a 

9 regulated insurance entity; and 

10 ‘‘(B) the Board of Governors does not de11 termine that the capital requirements in a spe12 cific foreign jurisdiction are inadequate. 

13 ‘‘(7) CAPACITY AS A REGULATED INSURANCE

14 ENTITY.—The term ‘capacity as a regulated insur15 ance entity’— 

16 ‘‘(A) includes any action or activity under17 taken by a person regulated by a State insur18 ance regulator or a regulated foreign subsidiary 

19 or regulated foreign affiliate of such person, as 

20 those actions relate to the provision of insur21 ance, or other activities necessary to engage in 

22 the business of insurance; and 

23 ‘‘(B) does not include any action or activ24 ity, including any financial activity, that is not 

25 regulated by a State insurance regulator or a 


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1 foreign agency or authority and subject to State 

2 insurance capital requirements or, in the case of 

3 a regulated foreign subsidiary or regulated for4 eign affiliate, capital requirements imposed by a 

5 foreign insurance regulatory authority.’’; and 

6 (2) by adding at the end the following new sub7 section: 

8 ‘‘(c) CLARIFICATION.— 

9 ‘‘(1) IN GENERAL.—In establishing the min10 imum leverage capital requirements and minimum 

11 risk-based capital requirements on a consolidated 

12 basis for a depository institution holding company or 

13 a nonbank financial company supervised by the 

14 Board of Governors as required under paragraphs 

15 (1) and (2) of subsection (b), the appropriate Fed16 eral banking agencies shall not be required to in17 clude, for any purpose of this section (including in 

18 any determination of consolidation), a person regu19 lated by a State insurance regulator or a regulated 

20 foreign subsidiary or a regulated foreign affiliate of 

21 such person engaged in the business of insurance, to 

22 the extent that such person acts in its capacity as 

23 a regulated insurance entity. 

24 ‘‘(2) RULE OF CONSTRUCTION ON BOARD’S AU25 THORITY.—This subsection shall not be construed to 


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1 prohibit, modify, limit, or otherwise supersede any 

2 other provision of Federal law that provides the 

3 Board of Governors authority to issue regulations 

4 and orders relating to capital requirements for de5 pository institution holding companies or nonbank fi6 nancial companies supervised by the Board of Gov7 ernors. 

8 ‘‘(3) RULE OF CONSTRUCTION ON ACCOUNTING

9 PRINCIPLES.—Notwithstanding any other provision 

10 of law, a depository institution holding company or 

11 nonbank financial company supervised by the Board 

12 of Governors of the Federal Reserve that is also a 

13 person regulated by a State insurance regulator or 

14 a regulated foreign subsidiary or a regulated foreign 

15 affiliate of such person that files its holding com16 pany financial statements utilizing only Statutory 

17 Accounting Principles in accordance with State law, 

18 shall not be required to prepare such financial state19 ments in accordance with Generally Accepted Ac20 counting Principles.’’. 

Æ 


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