II 

114TH CONGRESS 

1ST SESSION S. 798 

To provide for notice to, and input by, State insurance commissioners when 

requiring an insurance company to serve as a source of financial strength 

or when the Federal Deposit Insurance Corporation places a lien against 

an insurance company’s assets, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 19, 2015 

Mr. VITTER (for himself 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 provide for notice to, and input by, State insurance 

commissioners when requiring an insurance company to 

serve as a source of financial strength or when the Federal Deposit Insurance Corporation places a lien against 

an insurance company’s assets, 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 ‘‘Policyholder Protection 

5 Act of 2015’’. 


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•S 798 IS

1 SEC. 2. SOURCE OF STRENGTH. 

2 Section 38A of the Federal Deposit Insurance Act 

3 (12 U.S.C. 1831o–1) is amended— 

4 (1) by redesignating subsections (c), (d), and 

5 (e) as subsections (d), (e), and (f), respectively; and 

6 (2) by inserting after subsection (b) the fol7 lowing: 

8 ‘‘(c) AUTHORITY OF STATE INSURANCE REGU9 LATOR.— 

10 ‘‘(1) IN GENERAL.—The provisions of section 

11 5(g) of the Bank Holding Company Act of 1956 (12 

12 U.S.C. 1844(g)) shall apply to a savings and loan 

13 holding company that is an insurance company, an 

14 affiliate of an insured depository institution that is 

15 an insurance company, and to any other company 

16 that is an insurance company and that directly or 

17 indirectly controls an insured depository institution, 

18 to the same extent as such section 5(g) applies to 

19 a bank holding company that is an insurance com20 pany. 

21 ‘‘(2) RULE OF CONSTRUCTION.—Requiring a 

22 bank holding company that is an insurance com23 pany, a savings and loan holding company that is an 

24 insurance company, an affiliate of an insured deposi25 tory institution that is an insurance company, or any 

26 other company that is an insurance company and 


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1 that directly or indirectly controls an insured deposi2 tory institution to serve as a source of financial 

3 strength under this section shall be deemed an ‘ac4 tion of the Board that requires a bank holding com5 pany to provide funds or other assets to a subsidiary 

6 depository institution’ for purposes of such section 

7 5(g).’’. 

8 SEC. 3. LIQUIDATION AUTHORITY. 

9 The Dodd-Frank Wall Street Reform and Consumer 

10 Protection Act (12 U.S.C. 5301 et seq.) is amended— 

11 (1) in section 203(e)(3), by inserting ‘‘or reha12 bilitation’’ after ‘‘orderly liquidation’’ each place 

13 such term appears; and 

14 (2) in section 204(d)(4), by inserting before the 

15 semicolon the following: ‘‘, except that, if the covered 

16 financial company or covered subsidiary is an insur17 ance company or a subsidiary of an insurance com18 pany, the Corporation— 

19 ‘‘(A) shall promptly notify the State insur20 ance authority for the insurance company of the 

21 intention to take such lien; and 

22 ‘‘(B) may not take such lien if the State 

23 insurance authority notified under subpara24 graph (A) informs the Corporation, in writing, 

25 within 15 days of such notice, that the taking 


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•S 798 IS

1 of the lien on the assets of such company would 

2 have a materially adverse effect on the policy3 holders of such company’’. 

Æ 


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