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(3) in section 9(a)(2) (15 U.S.C. 80a–9(a)(2)), 
by inserting ‘‘municipal finance adviser,’’ after 
‘‘credit rating agency,’’. 
(c) INVESTMENT ADVISERS ACT OF 1940.—The In-
vestment Advisers Act of 1940 is amended— 
(1) in section 202(a) (15 U.S.C. 80b–2(a)), by 
inserting at the end the following new paragraph: 
‘‘(31) The term ‘municipal finance adviser’ has 
the same meaning as in section 3 of the Securities 
Exchange Act of 1934.’’; 
(2) in section 203(e)(2)(B) (15 U.S.C. 80b– 
3(e)(2)(B)), by inserting ‘‘municipal finance ad-
viser,’’ after ‘‘credit rating agency,’’; and 
(3) in section 203(e)(4) (15 U.S.C. 80b– 
3(e)(4)) is amended by inserting ‘‘municipal finance 
adviser,’’ after ‘‘credit rating agency,’’. 
SEC. 7803. EFFECTIVE DATES. 
(a) IN GENERAL.—The amendments made by this 
part shall take effect 30 days after the date of the enact-
ment of this subtitle. 
(b) EFFECTIVE DATE
AND REQUIREMENTS
FOR 
REGULATIONS.—Notwithstanding subsection (a), the Se-
curities and Exchange Commission shall, within 120 days 
after the date of the enactment of this subtitle, publish 
for notice and public comment such regulations as are ini-
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tially required to implement this part, and shall take final 
action with respect to such regulations not later than 270 
days after the date of enactment of this subtitle. 
(c) REGISTRATION DATE.—No person may continue 
to act as a municipal financial adviser, as such term is 
defined in section 3(a)(65) of the Securities Exchange Act 
of 1934 (as added by this part), after 30 days after the 
date the regulations described in subsection (b) become 
effective unless such person has been registered as re-
quired by the amendment made by section 7701 of this 
part. 
TITLE VI—FEDERAL INSURANCE 
OFFICE 
SEC. 8001. SHORT TITLE. 
This title may be cited as the ‘‘Federal Insurance Of-
fice Act of 2009’’. 
SEC. 8002. FEDERAL INSURANCE OFFICE ESTABLISHED. 
(a) ESTABLISHMENT OF OFFICE.—Subchapter I of 
chapter 3 of title 31, United States Code, is amended— 
(1) by transferring and inserting section 312 
after section 313; 
(2) by redesignating sections 313 and 312 (as 
so transferred) as sections 312 and 315, respec-
tively; and 
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(3) by inserting after section 312 (as so redes-
ignated) the following new sections: 
‘‘SEC. 313. FEDERAL INSURANCE OFFICE. 
‘‘(a) ESTABLISHMENT OF OFFICE.—There is estab-
lished the Federal Insurance Office as an office in the De-
partment of the Treasury. 
‘‘(b) LEADERSHIP.—The Office shall be headed by a 
Director, who shall be appointed by the Secretary of the 
Treasury. The position of such Director shall be a career 
reserved position in the Senior Executive Service. 
‘‘(c) FUNCTIONS.— 
‘‘(1) AUTHORITY PURSUANT TO DIRECTION OF 
SECRETARY.—The Office shall have the authority, 
pursuant to the direction of the Secretary, as fol-
lows: 
‘‘(A) To monitor the insurance industry to 
gain expertise. 
‘‘(B) To identify issues or gaps in the reg-
ulation of insurers that could contribute to a 
systemic crisis in the insurance industry or the 
United States financial system. 
‘‘(C) To monitor the extent to which tradi-
tionally underserved communities and con-
sumers, minorities (as such term is defined in 
24 section 1204(c) of the Financial Institutions 
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Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 1811 note)), and low- and 
moderate-income persons have access to afford-
able insurance products regarding all lines of 
insurance, except health insurance. 
‘‘(D) To recommend to the Financial Serv-
ices Oversight Council that it designate an in-
surer, including its affiliates, as an entity sub-
ject to stricter standards. 
‘‘(E) To assist the Secretary in admin-
istering the Terrorism Insurance Program es-
tablished in the Department of the Treasury 
under the Terrorism Risk Insurance Act of 
2002 (15 U.S.C. 6701 note). 
‘‘(F) To coordinate Federal efforts and de-
velop Federal policy on prudential aspects of 
international insurance matters, including rep-
resenting the United States as appropriate in 
the International Association of Insurance Su-
pervisors or any successor organization and as-
sisting the Secretary in negotiating covered 
agreements. 
‘‘(G) To determine, in accordance with 
subsection (f), whether State insurance meas-
ures are preempted by covered agreements. 
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‘‘(H) To consult with the States regarding 
insurance matters of national importance and 
prudential insurance matters of international 
importance. 
‘‘(I) To perform such other related duties 
and authorities as may be assigned to it by the 
Secretary. 
‘‘(2) ADVISORY FUNCTIONS.—The Office shall 
advise the Secretary on major domestic and pruden-
tial international insurance policy issues. 
‘‘(3) ADVISORY
CAPACITY
ON
COUNCIL.—The 
Director shall serve in an advisory capacity on the 
Financial Services Oversight Council established 
under the Financial Stability Improvement Act of 
2009. 
‘‘(d) SCOPE.—The authority of the Office shall ex-
tend to all lines of insurance except health insurance, as 
determined by the Secretary in coordination with the Sec-
retary of the Department of Health and Human Services 
based on section 2791 of the Public Health Service Act 
(42 U.S.C. 300gg–91). 
‘‘(e) GATHERING OF INFORMATION.— 
‘‘(1) GENERAL.—In carrying out its functions 
under subsection (c), the Office may request, receive, 
and collect data, including financial data, and infor-
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mation on and from the insurance industry and in-
surers, enter into information-sharing agreements, 
analyze and disseminate data and information, and 
issue reports regarding all lines of insurance except 
health insurance. 
‘‘(2) COLLECTION OF INFORMATION FROM IN-
SURERS AND AFFILIATES.—Except as provided in 
paragraph (3) and subject to paragraph (4), the Of-
fice may require an insurer, or affiliate of an in-
surer, to submit such data or information that the 
Office may reasonably require in carrying out its 
functions under subsection (c). Notwithstanding sub-
section (p) and for the purposes of this paragraph 
only, the term ‘insurer’ means any entity that writes 
insurance or reinsures risks and issues contracts or 
policies in one or more States. 
‘‘(3) EXCEPTION FOR SMALL INSURERS.—Para-
graph (2) shall not apply with respect to any insurer 
or affiliate thereof that meets a minimum size 
threshold that may be established by the Office by 
order or rule. Such threshold shall be appropriate to 
the particular request and need for the data or in-
formation. 
‘‘(4) ADVANCE
COORDINATION.—Before col-
lecting any data or information under paragraph (2) 
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from an insurer, or affiliate of an insurer, the Office 
shall coordinate with each relevant Federal agency 
and State insurance regulator (or other relevant 
Federal or State regulatory agency, if any, in the 
case of an affiliate of an insurer) and any publicly 
available sources to determine if the information to 
be collected is available from, or may be obtained in 
a timely manner by, such Federal agency or State 
insurance regulator, individually or collectively, other 
regulatory agency, or publicly available sources. If 
the Director determines that such data or informa-
tion is available, or may be obtained in a timely 
manner, from such an agency, regulator, regulatory 
agency, or source, the Director shall obtain the data 
or information from such agency, regulator, regu-
latory agency, or source. If the Director determines 
that such data or information is not so available, the 
Director may collect such data or information from 
an insurer (or affiliate) only if the Director complies 
with the requirements of subchapter I of chapter 35 
of title 44, United States Code (relating to Federal 
information policy; commonly known as the Paper-
work Reduction Act) in collecting such data or infor-
mation. Notwithstanding any other provision of law, 
each such relevant Federal agency and State insur-
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ance regulator or other Federal or State regulatory 
agency is authorized to provide to the Office such 
data or information. 
‘‘(5) CONFIDENTIALITY.— 
‘‘(A) The submission of any non-publicly 
available data and information to the Office 
under this subsection shall not constitute a 
waiver of, or otherwise affect, any privilege aris-
ing under Federal or State law (including the 
rules of any Federal or State Court) to which 
the data or information is otherwise subject. 
‘‘(B) Any requirement under Federal or 
State law to the extent otherwise applicable, or 
any requirement pursuant to a written agree-
ment in effect between the original source of 
any non-publicly available data or information 
and the source of such data or information to 
the Office, regarding the privacy or confiden-
tiality of any data or information in the posses-
sion of the source to the Office, shall continue 
to apply to such data or information after the 
data or information has been provided pursuant 
to this subsection to the Office. 
‘‘(C) Any data or information obtained by 
the Office may be made available to State in-
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surance regulators individually or collectively 
through an information sharing agreement that 
shall comply with applicable Federal law and 
that shall not constitute a waiver of, or other-
wise affect, any privilege under Federal or 
State law (including the rules of any Federal or 
State Court) to which the data or information 
is otherwise subject. 
‘‘(D) Section 552 of title 5, United States 
Code, shall apply to any data or information 
submitted by an insurer or affiliate of an in-
surer. 
‘‘(f) PREEMPTION
OF STATE INSURANCE MEAS-
URES.— 
‘‘(1) STANDARD.—A State insurance measure 
shall be preempted pursuant to this section or sec-
tion 314 if, and only to the extent that the Director 
determines, in accordance with this subsection, that 
the measure— 
‘‘(A) directly results in less favorable treat-
ment of a non-United States insurer domiciled 
in a foreign jurisdiction that is subject to a cov-
ered agreement than a United States insurer 
domiciled, licensed, admitted, or otherwise au-
thorized in that State; and 
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‘‘(B) is inconsistent with a covered agree-
ment that is entered into on a date after the 
date of the enactment of this Act. 
‘‘(2) DETERMINATION.— 
‘‘(A) NOTICE
OF
POTENTIAL
INCONSIST-
ENCY.—Before making any determination of in-
consistency, the Director shall— 
‘‘(i) notify and consult with the appro-
priate State regarding any potential incon-
sistency or preemption; 
‘‘(ii) notify and consult with the 
United States Trade Representative re-
garding any potential inconsistency or pre-
emption; 
‘‘(iii) cause to be published in the 
Federal Register notice of the issue re-
garding the potential inconsistency or pre-
emption, including a description of each 
State insurance measure at issue and any 
applicable covered agreement; 
‘‘(iv) provide interested parties a rea-
sonable opportunity to submit written com-
ments to the Office; 
‘‘(v) consider the effect of preemption 
on— 
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‘‘(I) the protection of policy-
holders and policy claimants; 
‘‘(II) the maintenance of the 
safety, soundness, integrity, and fi-
nancial responsibility of any entity in-
volved in the business of insurance or 
insurance operations; 
‘‘(III) ensuring the integrity and 
stability of the United States financial 
system; and 
‘‘(IV) the creation of a gap or 
void in financial or market conduct 
regulation of any entity involved in 
the business of insurance or insurance 
operations in the United States; and 
‘‘(vi) consider any comments received. 
The Director shall provide the notifications re-
quired under clauses (i), (ii), and (iii) contem-
poraneously. 
‘‘(B) SCOPE OF REVIEW.—For purposes of 
this section, the Director’s determination of 
State insurance measures shall be limited to the 
subject matter of the prudential measures ap-
plicable to the business of insurance contained 
within the covered agreement involved. 
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‘‘(4) LIMITATION.—No State may enforce a 
State insurance measure to the extent that it has 
been preempted under this subsection. 
‘‘(g) APPLICABILITY
OF ADMINISTRATIVE PROCE-
DURE ACT.—Determinations of inconsistency pursuant to 
subsection (f)(2) shall be subject to the applicable provi-
sions of subchapter II of chapter 5 of title 5, United 
States Code (relating to administrative procedure), and 
chapter 7 of such title (relating to judicial review), except 
that in any action for judicial review of a determination 
of inconsistency, the court shall determine the matter de 
novo. 
‘‘(h) REGULATIONS, POLICIES, AND PROCEDURES.— 
The Secretary may issue orders, regulations, policies and 
procedures to implement this section. 
‘‘(i) CONSULTATION.—The Director shall consult 
with State insurance regulators, individually and collec-
tively, to the extent the Director determines appropriate, 
in carrying out the functions of the Office. 
‘‘(j) SAVINGS PROVISIONS.—Nothing in this section 
shall— 
‘‘(1) preempt any State insurance measure that 
governs any insurer’s rates, premiums, underwriting 
or sales practices, or State coverage requirements 
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for insurance, or to the application of the antitrust 
laws of any State to the business of insurance; 
‘‘(2) preempt any State insurance measure gov-
erning the capital or solvency of an insurer, except 
to the extent that such State insurance measure di-
rectly results in less favorable treatment of a non- 
United States insurer than a United States insurer; 
‘‘(3) be construed to alter, amend, or limit the 
responsibility of the Consumer Financial Protection 
Agency; 
‘‘(4) preempt any State insurance measure be-
cause of inconsistency with any agreement that is 
not a covered agreement (as such term in defined in 
subsection (p)); or 
‘‘(5) affect the preemption of any State insur-
ance measure otherwise inconsistent with and pre-
empted by Federal law. 
‘‘(k) RETENTION OF EXISTING STATE REGULATORY 
AUTHORITY.—Nothing in this section or section 314 shall 
be construed to establish a general supervisory or regu-
latory authority of the Office or the Department of the 
Treasury over the business of insurance. 
‘‘(l) RETENTION OF AUTHORITY OF FEDERAL FI-
NANCIAL REGULATORY AGENCIES.—Nothing in this sec-
tion or section 314 shall be construed to limit the author-
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ity of any Federal financial regulatory agency, including 
the authority to develop and coordinate policy, negotiate, 
and enter into agreements with foreign governments, au-
thorities, regulators, and multi-national regulatory com-
mittees and to preempt State measures to affect uni-
formity with international regulatory agreements. 
‘‘(m) RETENTION
OF
AUTHORITY
OF
UNITED 
STATES TRADE REPRESENTATIVE.—Nothing in this sec-
tion or section 314 shall be construed to affect the author-
ity of the Office of the United States Trade Representative 
pursuant to section 141 of the Trade Act of 1974 (19 
U.S.C. 2171) or any other provision of law, including au-
thority over the development and coordination of United 
States international trade policy and the administration 
of the United States trade agreements program. 
‘‘(n) REPORTS TO CONGRESS.— 
‘‘(1) ANNUAL REPORT.—Beginning September 
30, 2011, the Director shall submit a report on or 
before September 30 of each calendar year to the 
President and to the Committees on Financial Serv-
ices and Ways and Means of the House of Rep-
resentatives and the Committees on Banking, Hous-
ing, and Urban Affairs and Finance of the Senate 
on the insurance industry, any actions taken by the 
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office pursuant to subsection (f) (regarding preemp-
tion of inconsistent State insurance measures). 
‘‘(2) OTHER REPORTS.—The Director shall sub-
mit to the President and the Committees referred to 
in paragraph (1) any other information or reports as 
deemed relevant by the Director or as requested by 
the Chairman or Ranking Member of any of such 
Committees. 
‘‘(o) USE OF EXISTING RESOURCES.—To carry out 
this section, the Office may employ personnel, facilities, 
and other Department of the Treasury resources available 
to the Secretary and the Secretary shall dedicate specific 
personnel to the Office. 
‘‘(p) DEFINITIONS.—For purposes of this section and 
section 314, the following definitions shall apply: 
‘‘(1) AFFILIATE.—The term ‘affiliate’ means, 
with respect to an insurer, any person that controls, 
is controlled by, or is under common control with the 
insurer. 
‘‘(2) COVERED
AGREEMENT.—The term ‘cov-
ered agreement’ means a written bilateral or multi-
lateral recognition agreement that— 
‘‘(A) is entered into between the United 
States and one or more foreign governments, 
authorities, or regulatory entities; and 
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‘‘(B) provides for recognition of prudential 
measures with respect to the business of insur-
ance or reinsurance that achieves a level of pro-
tection for insurance or reinsurance consumers 
that is substantially equivalent to the level of 
protection achieved under State insurance or re-
insurance regulation. 
‘‘(3) DETERMINATION
OF
INCONSISTENCY.— 
The term ‘determination of inconsistency’ means a 
determination that a State insurance measure is pre-
empted under subsection (f). 
‘‘(4) FEDERAL FINANCIAL REGULATORY AGEN-
CY.—The term ‘Federal financial regulatory agency’ 
means the Department of the Treasury, the Board 
of Governors of the Federal Reserve System, the Of-
fice of the Comptroller of the Currency, the Office 
of Thrift Supervision, the Securities and Exchange 
Commission, the Commodity Futures Trading Com-
mission, the Federal Deposit Insurance Corporation, 
the Federal Housing Finance Agency, or the Na-
tional Credit Union Administration. 
‘‘(5) INSURER.—The term ‘insurer’ means any 
person engaged in the business of insurance, includ-
ing reinsurance. 
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‘‘(6) NON-UNITED STATES INSURER.—The term 
‘non-United States insurer’ means an insurer that is 
organized under the laws of a jurisdiction other than 
a State, but does not include any United States 
branch of such an insurer. 
‘‘(7) OFFICE.—The term ‘Office’ means the 
Federal Insurance Office established by this section. 
‘‘(8) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
‘‘(9) STATE.—The term ‘State’ means any 
State, commonwealth, territory, or possession of the 
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, American Samoa, Guam, 
or the United States Virgin Islands. 
‘‘(10) STATE INSURANCE MEASURE.—The term 
‘State insurance measure’ means any State law, reg-
ulation, administrative ruling, bulletin, guideline, or 
practice relating to or affecting prudential measures 
applicable to insurance or reinsurance. 
‘‘(11) STATE
INSURANCE
REGULATOR.—The 
term ‘State insurance regulator’ means any State 
regulatory authority responsible for the supervision 
of insurers. 
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