I 
113TH CONGRESS 
1ST SESSION H. R. 2140 
To permit insurance companies that are depository holding companies, or 
are subsidiaries of depository holding companies, to comply with the 
accounting and capital requirements applicable to the insurance company 
under State law, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 23, 2013 
Mr. GARY G. MILLER of California (for himself and Mrs. MCCARTHY of New 
York) introduced the following bill; which was referred to the Committee 
on Financial Services 
A BILL 
To permit insurance companies that are depository holding 
companies, or are subsidiaries of depository holding com-
panies, to comply with the accounting and capital re-
quirements applicable to the insurance company under 
State law, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Insurance Capital and 
Accounting Standards Act of 2013’’. 
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SEC. 2. LEVERAGE AND RISK-BASED CAPITAL REQUIRE-
MENTS. 
Subsection (b) of section 171 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 
5371(b)) is amended— 
(1) by redesignating paragraphs (3), (4), (5), 
(6), and (7) as paragraphs (4), (5), (6), (7), and 
(8), respectively; and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) INSURANCE COMPANIES.— 
‘‘(A) IN GENERAL.—The minimum lever-
age capital requirements and the minimum 
risk-based 
capital 
requirements 
established 
under paragraphs (1) and (2) shall, for deposi-
tory institution holding companies and nonbank 
financial companies supervised by the Board of 
Governors that is an insurance company, or 
that has one or more subsidiaries that are in-
surance companies— 
‘‘(i) with respect to the insurance 
company, adhere to the regulatory account-
ing practices and procedures applicable to, 
and the capital structure of, such compa-
nies; and 
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‘‘(ii) with respect to the insurance 
company, utilize the governing State law 
capital requirements for insurance compa-
nies. 
‘‘(B) COMPLIANCE
WITH
CAPITAL
RE-
QUIREMENTS UNDER STATE LAW.— 
‘‘(i) PRESUMPTION.—Any insurance 
company, insurance affiliate, or insurance 
subsidiary in compliance with applicable 
risk-based capital standards established 
under State law shall be presumed to sat-
isfy any minimum capital requirements of 
this section. 
‘‘(ii) 
DETERMINATION
OF
BOARD 
WITH
RESPECT
TO
PRESUMPTION.—The 
Board of Governors may, on a case-by-case 
basis on the record, determine that the 
presumption in clause (i) should not apply, 
provided that the Board first establishes 
through rulemaking the general procedures 
and standards to be utilized for such pro-
ceedings. 
‘‘(iii) EFFECT OF DETERMINATION.— 
Where the Board of Governors makes a de-
termination under clause (ii) that the pre-
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of Governors determines that the study 
shows the requirements are appropriate. 
‘‘(D) RULEMAKING REQUIREMENTS.—Any 
rulemaking implementing paragraphs (1) and 
(2) shall separately incorporate and reflect the 
requirements provided for under subparagraphs 
(A), (B), and (C).’’. 
SEC. 3. ACCOUNTING STANDARDS APPLICABLE TO INSUR-
ANCE COMPANIES. 
Section 115 of the Dodd-Frank Wall Street Reform 
and Consumer Protection Act (12 U.S.C. 5325) is amend-
ed by adding at the end the following: 
‘‘(h) ACCOUNTING STANDARDS APPLICABLE TO IN-
SURANCE COMPANIES.—With respect to a nonbank finan-
cial company supervised by the Board of Governors that 
is an insurance company, the Board of Governors may not 
require the insurance company to comply with accounting 
standards, including generally accepted accounting prin-
ciples, that are different than those regulatory accounting 
standards applicable to the insurance company under ap-
plicable State law.’’. 
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SEC. 4. SOLVENCY, CAPITAL, AND ACCOUNTING REQUIRE-
MENTS FOR INSURANCE-BASED SAVINGS AND 
LOAN HOLDING COMPANIES. 
Section 10(g) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(g)) is amended by adding at the end the 
following: 
‘‘(6) SOLVENCY, CAPITAL, AND
ACCOUNTING 
REQUIREMENTS
FOR
INSURANCE-BASED
SAVINGS 
AND LOAN HOLDING COMPANIES.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this section, in establishing 
capital standards required for a savings and 
loan holding company that is an insurance com-
pany or that has one or more subsidiaries that 
are insurance companies, the Board shall— 
‘‘(i) with respect to the insurance 
company, adhere to the regulatory account-
ing practices and procedures applicable to, 
and the capital structure of, such com-
pany; 
‘‘(ii) with respect to the insurance 
company, utilize the governing State law 
capital requirements for insurers; and 
‘‘(iii) not require any insurance com-
pany to comply with accounting standards, 
including generally accepted accounting 
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principles, that are different than those ac-
counting standards the company is re-
quired to comply with by the company’s 
State regulator. 
‘‘(B) COMPLIANCE
WITH
CAPITAL
RE-
QUIREMENTS UNDER STATE LAW.— 
‘‘(i) PRESUMPTION.—Any insurance 
company, insurance affiliate, or insurance 
subsidiary in compliance with applicable 
risk-based capital standards established 
under State law shall be presumed to sat-
isfy any capital requirements of this Act. 
‘‘(ii) 
DETERMINATION
OF
BOARD 
WITH
RESPECT
TO
PRESUMPTION.—The 
Board may, on a case-by-case basis on the 
record, determine that the presumption in 
clause (i) should not apply, provided that 
the Board first establishes through rule-
making the general procedures and stand-
ards to be utilized for such proceedings. 
‘‘(iii) EFFECT OF DETERMINATION.— 
Where the Board makes a determination 
under clause (ii) that the presumption 
should not apply to a company, the re-
quirements of subparagraphs (A), (C), and 
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(D) remain applicable in establishing cap-
ital rules for such company. 
‘‘(C) ANALYSIS
OF
CAPITAL
REQUIRE-
MENTS.—No capital requirements under this 
Act for a company described under subpara-
graph (A) shall apply unless the Board— 
‘‘(i) carries out a cost-benefit analysis 
of the application of those requirements 
specific to a company described under sub-
paragraph (A), including soliciting and re-
viewing public comment of the analysis 
prior to any final rulemaking, and the 
Board determines that the benefits of ap-
plying the requirements outweigh the cost; 
and 
‘‘(ii) carries out a quantitative impact 
study of the application of those require-
ments specific to a company described 
under subparagraph (A), including solic-
iting and reviewing public comment of the 
study prior to any final rulemaking, and 
only apply the requirements if the Board 
determines that the study shows the re-
quirements are appropriate. 
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‘‘(D) RULEMAKING REQUIREMENTS.—Any 
rulemaking setting capital rules for companies 
described in subparagraph (A) shall separately 
incorporate and reflect the requirements pro-
vided for under subparagraphs (A), (B), and 
(C).’’. 
SEC. 5. 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 fol-
lowing: 
‘‘(c) INSURANCE REGULATOR CONSENT.—In cases 
involving a depository institution holding company that is 
an insurance company or that has one or more subsidi-
aries that are insurance companies, before the appropriate 
Federal banking agency may require such insurance com-
pany to be used directly or indirectly as a source of finan-
cial strength pursuant to subsection (a) or (b), the appro-
priate Federal banking agency shall obtain— 
‘‘(1) the consent of the insurance commissioner 
(or similar official charged with the principal respon-
sibility of supervising the business of insurance with-
in each State, territory, or insular possession of the 
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United States) of the insurance company’s domi-
ciliary State; and 
‘‘(2) a certification from such commissioner 
that the commissioner considered the safety and 
soundness of the insurance company or subsidiary 
insurance company prior to providing such con-
sent.’’. 
Æ 
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