IC 

113TH CONGRESS 

2D SESSION S. 2270 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 5, 2014 

Referred to the Committee on Financial Services 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Insurance Capital 

3 Standards Clarification Act of 2014’’. 

4 SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE 

5 AND RISK-BASED CAPITAL REQUIREMENTS. 

6 Section 171 of the Dodd-Frank Wall Street Reform 

7 and Consumer Protection Act (12 U.S.C. 5371) is amend8 ed— 

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

10 following: 

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

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

13 section 1002(3). 

14 ‘‘(5) PERSON REGULATED BY A STATE INSUR15 ANCE REGULATOR.—The term ‘person regulated by 

16 a State insurance regulator’ has the same meaning 

17 as in section 1002(22). 

18 ‘‘(6) REGULATED FOREIGN SUBSIDIARY AND

19 REGULATED FOREIGN AFFILIATE.—The terms ‘regu20 lated foreign subsidiary’ and ‘regulated foreign affil21 iate’ mean a person engaged in the business of in22 surance in a foreign country that is regulated by a 

23 foreign insurance regulatory authority that is a 

24 member of the International Association of Insur25 ance Supervisors or other comparable foreign insur26 ance regulatory authority as determined by the 


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1 Board of Governors following consultation with the 

2 State insurance regulators, including the lead State 

3 insurance commissioner (or similar State official) of 

4 the insurance holding company system as deter5 mined by the procedures within the Financial Anal6 ysis Handbook adopted by the National Association 

7 of Insurance Commissioners, where the person, or 

8 its principal United States insurance affiliate, has 

9 its principal place of business or is domiciled, but 

10 only to the extent that— 

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

12 regulated insurance entity; and 

13 ‘‘(B) the Board of Governors does not de14 termine that the capital requirements in a spe15 cific foreign jurisdiction are inadequate. 

16 ‘‘(7) CAPACITY AS A REGULATED INSURANCE

17 ENTITY.—The term ‘capacity as a regulated insur18 ance entity’— 

19 ‘‘(A) includes any action or activity under20 taken by a person regulated by a State insur21 ance regulator or a regulated foreign subsidiary 

22 or regulated foreign affiliate of such person, as 

23 those actions relate to the provision of insur24 ance, or other activities necessary to engage in 

25 the business of insurance; and 


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1 ‘‘(B) does not include any action or activ2 ity, including any financial activity, that is not 

3 regulated by a State insurance regulator or a 

4 foreign agency or authority and subject to State 

5 insurance capital requirements or, in the case of 

6 a regulated foreign subsidiary or regulated for7 eign affiliate, capital requirements imposed by a 

8 foreign insurance regulatory authority.’’; and 

9 (2) by adding at the end the following new sub10 section: 

11 ‘‘(c) CLARIFICATION.— 

12 ‘‘(1) IN GENERAL.—In establishing the min13 imum leverage capital requirements and minimum 

14 risk-based capital requirements on a consolidated 

15 basis for a depository institution holding company or 

16 a nonbank financial company supervised by the 

17 Board of Governors as required under paragraphs 

18 (1) and (2) of subsection (b), the appropriate Fed19 eral banking agencies shall not be required to in20 clude, for any purpose of this section (including in 

21 any determination of consolidation), a person regu22 lated by a State insurance regulator or a regulated 

23 foreign subsidiary or a regulated foreign affiliate of 

24 such person engaged in the business of insurance, to 


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1 the extent that such person acts in its capacity as 

2 a regulated insurance entity. 

3 ‘‘(2) RULE OF CONSTRUCTION ON BOARD’S AU4 THORITY.—This subsection shall not be construed to 

5 prohibit, modify, limit, or otherwise supersede any 

6 other provision of Federal law that provides the 

7 Board of Governors authority to issue regulations 

8 and orders relating to capital requirements for de9 pository institution holding companies or nonbank fi10 nancial companies supervised by the Board of Gov11 ernors. 

12 ‘‘(3) RULE OF CONSTRUCTION ON ACCOUNTING

13 PRINCIPLES.— 

14 ‘‘(A) IN GENERAL.—A depository institu15 tion holding company or nonbank financial com16 pany supervised by the Board of Governors of 

17 the Federal Reserve that is also a person regu18 lated by a State insurance regulator that is en19 gaged in the business of insurance that files fi20 nancial statements with a State insurance regu21 lator or the National Association of Insurance 

22 Commissioners utilizing only Statutory Ac23 counting Principles in accordance with State 

24 law, shall not be required by the Board under 

25 the authority of this section or the authority of 


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1 the Home Owners’ Loan Act to prepare such fi2 nancial statements in accordance with Generally 

3 Accepted Accounting Principles. 

4 ‘‘(B) PRESERVATION OF AUTHORITY.— 

5 Nothing in subparagraph (A) shall limit the au6 thority of the Board under any other applicable 

7 provision of law to conduct any regulatory or 

8 supervisory activity of a depository institution 

9 holding company or non-bank financial com10 pany supervised by the Board of Governors, in11 cluding the collection or reporting of any infor12 mation on an entity or group-wide basis. Noth13 ing in this paragraph shall excuse the Board 

14 from its obligations to comply with section 

15 161(a) of the Dodd-Frank Wall Street Reform 

16 and Consumer Protection Act (12 U.S.C. 

17 5361(a)) and section 10(b)(2) of the Home 

18 Owners’ Loan Act (12 U.S.C. 1467a(b)(2)), as 

19 appropriate.’’. 

Passed the Senate June 3, 2014. 

Attest: NANCY ERICKSON, 

Secretary. 


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