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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 798 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Policyholder Protection Act of 
2015''.

SEC. 2. SOURCE OF STRENGTH.

    Section 38A of the Federal Deposit Insurance Act (12 U.S.C. 1831o-
1) is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (2) by inserting after subsection (b) the following:
    ``(c) Authority of State Insurance Regulator.--
            ``(1) In general.--The provisions of section 5(g) of the 
        Bank Holding Company Act of 1956 (12 U.S.C. 1844(g)) shall 
        apply to a savings and loan holding company that is an 
        insurance company, an affiliate of an insured depository 
        institution that is an insurance company, and to any other 
        company that is an insurance company and that directly or 
        indirectly controls an insured depository institution, to the 
        same extent as such section 5(g) applies to a bank holding 
        company that is an insurance company.
            ``(2) Rule of construction.--Requiring a bank holding 
        company that is an insurance company, a savings and loan 
        holding company that is an insurance company, an affiliate of 
        an insured depository institution that is an insurance company, 
        or any other company that is an insurance company and that 
        directly or indirectly controls an insured depository 
        institution to serve as a source of financial strength under 
        this section shall be deemed an `action of the Board that 
        requires a bank holding company to provide funds or other 
        assets to a subsidiary depository institution' for purposes of 
        such section 5(g).''.

SEC. 3. LIQUIDATION AUTHORITY.

    The Dodd-Frank Wall Street Reform and Consumer Protection Act (12 
U.S.C. 5301 et seq.) is amended--
            (1) in section 203(e)(3), by inserting ``or 
        rehabilitation'' after ``orderly liquidation'' each place such 
        term appears; and
            (2) in section 204(d)(4), by inserting before the semicolon 
        the following: ``, except that, if the covered financial 
        company or covered subsidiary is an insurance company or a 
        subsidiary of an insurance company, the Corporation--
                    ``(A) shall promptly notify the State insurance 
                authority for the insurance company of the intention to 
                take such lien; and
                    ``(B) may not take such lien if the State insurance 
                authority notified under subparagraph (A) informs the 
                Corporation, in writing, within 15 days of such notice, 
                that the taking of the lien on the assets of such 
                company would have a materially adverse effect on the 
                policyholders of such company''.
                                 <all>
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