States and jurisdictions outside the United States to de-
termine, on a uniform basis, whether such systems provide 
adequate capital and risk management standards and an 
acceptable level of prudential supervision over their domi-
ciled reinsurers. 
SEC. 3. CORPORATE STATUS. 
(a) IN GENERAL.—The Board shall— 
(1) be a nonprofit corporation; 
(2) have succession until dissolved by an Act of 
Congress; 
(3) not be an agency or establishment of the 
United States Government; and 
(4) except as otherwise provided in this Act, be 
subject to, and have all the powers conferred upon 
a nonprofit corporation by, the District of Columbia 
Nonprofit Corporation Act. 
(b) NONGOVERNMENTAL EMPLOYEES.—No member 
or person employed by, or who is an agent for, the Board 
shall be considered to be an officer or employee of or agent 
for the Federal Government by reason of such service. 
SEC. 4. MEMBERSHIP AND OVERSIGHT. 
(a) APPOINTMENT.—The Board shall have seven 
members as follows: 
(1) All members shall be appointed by the 
President from among individuals who have dem-
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onstrated expertise in reinsurance matters and shall 
serve at the pleasure of the President. 
(2) A majority of the members of the Board 
shall be selected from among the lists of individuals 
having reinsurance regulatory expertise that may be 
submitted to the President by any State insurance 
regulatory authority or any association representing 
such authorities, subject only to the submission of 
multiple such lists and the inclusion in each list sub-
mitted of a reasonable number of names of individ-
uals. 
(b) TERMS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), each member of the Board shall be ap-
pointed for a term of seven years. 
(2) TERMS OF INITIAL APPOINTEES.—As des-
ignated by the President at the time of appointment, 
of the members of the Board first appointed, one 
each shall be appointed for a term of one year, for 
a term of two years, for a term of three years, for 
a term of four years, for a term of five years, and 
for a term of six years. 
(c) OVERSIGHT.—The President, or the President’s 
designee, may prohibit or suspend the effectiveness of any 
action of the Board that the President or such designee 
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determines, after advance public notice and comment 
where appropriate, is significantly contrary to the public 
interest. 
SEC. 5. DUTIES. 
The duties of the Board shall be— 
(1) to establish standards and procedures to 
evaluate the reinsurance supervisory systems of the 
States and foreign jurisdictions in accordance with 
section 6; 
(2) to conduct such evaluations; 
(3) to certify, pursuant to section 6(c), reinsur-
ance supervisory systems that comply with such 
standards; 
(4) to facilitate the development of uniform 
standards for regulation of reinsurance; 
(5) to perform such other duties or functions as 
the Board determines are necessary or appropriate 
to carry out this Act; and 
(6) to establish the budget and manage the op-
erations of the Board and the staff of the Board. 
SEC. 6. EVALUATION AND CERTIFICATION OF REINSUR-
ANCE SUPERVISORY SYSTEMS. 
(a) STANDARDS.—The Board shall establish uniform 
standards for reinsurance supervisory systems of States 
and foreign jurisdictions that ensure that any such system 
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that complies with such standards provides adequate cap-
ital and risk management standards and an acceptable 
level of prudential supervision over reinsurers domiciled in 
such State or jurisdiction. 
(b) PROCEDURES.—The Board shall establish proce-
dures for any entity to make a request for evaluation of 
the reinsurance supervisory system of a State or foreign 
jurisdiction to determine compliance of such system with 
the standards established by the Board pursuant to sub-
section (a). Such procedures shall provide that an evalua-
tion shall be conducted only upon payment to the Board 
of a fee in the amount established pursuant to subsection 
(c). 
(c) FEES.—The Board shall establish a fee for con-
ducting evaluations under this section in the amount such 
that the aggregate of fees collected covers all costs of con-
ducting evaluations under this section and all other costs 
of the establishment and operation of the Board. 
(d) CERTIFICATION.—If, upon conducting of an eval-
uation under this section with respect to the reinsurance 
supervisory system of any State or foreign jurisdiction, the 
Board determines that the system complies with the 
standards established pursuant to subsection (a), the 
Board shall certify such compliance and publish notice and 
evidence of such certification in an appropriate manner. 
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Such certification shall be effective for a term of 12 
months from the date of initial certification. 
(e) PUBLIC NOTICE AND COMMENT.—In developing 
standards, procedures, and fee levels pursuant to sub-
sections (a) through (c) and making determinations pursu-
ant to subsection (d), the Board shall provide appropriate 
advance public notice and opportunity for public comment. 
SEC. 7. TREATMENT OF CERTIFIED REINSURANCE SUPER-
VISORY SYSTEMS. 
(a) CREDIT
FOR REINSURANCE.—The domiciliary 
State of a ceding insurer may not treat a reinsurer domi-
ciled in any other domestic or foreign jurisdiction dif-
ferently from reinsurers domiciled and in good standing 
in such domiciliary State for the purpose of determining 
credit for reinsurance for that ceding insurer, if— 
(1) the domestic or foreign jurisdiction is cer-
tified pursuant to section 6(d); and 
(2) the reinsurer is in good standing in such 
other jurisdiction. 
(b) PREEMPTION OF INCONSISTENT STATE LAWS.— 
All laws, regulations, provisions, or other actions of a 
State are preempted to the extent that they are incon-
sistent with subsection (a). 
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SEC. 8. FACILITATION OF UNIFORM REINSURANCE STAND-
ARDS. 
(a) DEVELOPMENT OF PROPOSED STANDARDS.—The 
Board shall periodically develop proposed uniform stand-
ards to improve various aspects of reinsurance regulation, 
particularly where a domestic or international consensus 
standard or conflict of law has emerged. 
(b) REPORTING
OF PROPOSED STANDARDS.—The 
Board shall report any standards proposed under sub-
section (a) to the appropriate State and Federal entities, 
including proposed enacting or implementing language, as 
appropriate. 
SEC. 9. POWERS OF BOARD. 
In addition to any other authority granted to the 
Board in this Act, the Board shall have the power— 
(1) to sue and be sued, complain and defend, in 
its corporate name and through its own counsel, 
with the approval of the President, in any Federal, 
State, or other court; 
(2) to conduct its operations and maintain of-
fices, and to exercise all other rights and powers au-
thorized by this Act, in any State, without regard to 
any qualification, licensing, or other provision of law 
in effect in such State (or a political subdivision 
thereof); 
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(3) to lease, purchase, accept gifts or donations 
of or otherwise acquire, improve, use, sell, exchange, 
or convey, all of or an interest in any property, 
wherever situated; 
(4) to hire employees, professionals, and spe-
cialists, and elect or appoint officers, and to fix their 
compensation, define their duties, determine their 
qualification, and give them appropriate authority to 
carry out the purposes of the Act; and to establish 
the personnel policies and programs for the Board 
relating to conflicts of interest, rates of compensa-
tion, and such other matters as the Board considers 
appropriate; 
(5) to allocate, assess, and collect fees estab-
lished pursuant to section 6(c); and 
(6) to enter into agreements, incur liabilities, 
and do any and all other acts and things necessary, 
appropriate, or incidental to the conduct of its oper-
ations and the exercise of its obligations, rights, and 
powers imposed or granted by this Act. 
SEC. 10. RULES AND BYLAWS. 
The Board shall establish such rules and bylaws as 
the Board determines necessary— 
(1) to provide for the operation and administra-
tion of the Board, the exercise of its authority, and 
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the performance of its responsibilities under this 
Act; 
(2) to permit, as the Board determines nec-
essary or appropriate, delegation by the Board of 
any of its functions to an individual member or em-
ployee of the Board, or to a division of the Board, 
including functions with respect to hearing, deter-
mining, ordering, certifying, reporting, or otherwise 
acting as to any matter; and 
(3) to otherwise carry out this Act. 
SEC. 11. CONSULTATION WITH FEDERAL AGENCIES. 
The Board shall coordinate with other Federal and 
State agencies as necessary to assist and advise the Board 
in performing its duties under this Act. 
SEC. 12. DEFINITIONS. 
For purposes of this Act, the following definitions 
shall apply: 
(1) BOARD.—The term ‘‘Board’’ means the Re-
insurance International Solvency Standards Evalua-
tion Board established by section 2. 
(2) CEDING INSURER.—The term ‘‘ceding in-
surer’’ means an insurer that purchases reinsurance. 
(3) DOMICILED.—The term ‘‘domiciled’’ means, 
with respect to an insurer or reinsurer, to be incor-
porated or entered through, and licensed. 
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(4) DOMICILIARY
STATE.—The term ‘‘domi-
ciliary State’’ means, with respect to an insurer or 
reinsurer, the State in which the insurer or reinsurer 
is domiciled. 
(5) INSURANCE.—The term ‘‘insurance’’ means 
any product, other than title insurance, defined or 
regulated as insurance by the appropriate State in-
surance regulatory authority. 
(6) REINSURANCE.—The term ‘‘reinsurance’’ 
means the assumption by an insurer of all or part 
of a risk undertaken by another insurer. 
(7) REINSURANCE SUPERVISORY SYSTEM.—The 
term ‘‘reinsurance supervisory system’’ means, with 
respect to a State or foreign jurisdiction, the agency, 
board, commission, or other entity that has primary 
regulatory authority over the business of reinsurance 
for the State or jurisdiction. 
(8) STATE.—The term ‘‘State’’ means the 
States of the United States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Com-
monwealth of the Northern Mariana Islands, Guam, 
the Virgin Islands, American Samoa, any other ter-
ritory or possession of the United States. 
(9) STATE INSURANCE REGULATORY AUTHOR-
ITY.—The term ‘‘State insurance regulatory author-
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ity’’ means, with respect to a State, the officer, 
agency, board, commission, or other entity of a State 
that has primary regulatory authority over the busi-
ness of insurance for the State. 
SEC. 13. LOAN FOR INITIAL FUNDING. 
(a) IN GENERAL.—Upon the initial appointment of 
all of the members of the Board, the Secretary of the 
Treasury shall make a direct loan to the Board of 
$10,000,000, which shall be available only for use for 
operational and administrative costs of the Board in car-
rying out its duties under this Act. 
(b) TERMS.—The loan under this section shall— 
(1) be repaid not later than the expiration of 
the 5-year period beginning upon the making of the 
loan; and 
(2) bear interest at the annual rate of interest 
paid under marketable obligations of the United 
States having comparable maturities and most re-
cently issued by the Secretary of the Treasury before 
the making of the loan under this section. 
(c) AUTHORIZATION
OF
APPROPRIATIONS
FOR 
COSTS.—There is authorized to be appropriated such 
sums as may be necessary for the costs (as such term is 
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defined in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a)) of the loan under this section. 
Æ 
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