‘‘(i) such entity notifies the Director 
of its intention to convert in accordance 
with such procedures as the Director may 
prescribe by regulation; 
‘‘(ii) after conducting an appropriate 
review, the Director approves the conver-
sion. 
‘‘(D) APPLICABILITY OF THE BANKRUPTCY 
CODE.—A delinquency proceeding for the liq-
uidation or reorganization of a United States 
national reinsurer shall proceed under the pro-
visions of title 11. 
‘‘(2) SUPERVISORY ARRANGEMENTS.— 
‘‘(A) AUTHORITY.—In order to realize the 
efficiencies and consumer benefits of a more 
harmonized international reinsurance regulatory 
system, the Secretary and the United States 
Trade Representative, jointly, shall be author-
ized to enter into supervisory arrangements for 
the recognition of qualified reinsurance super-
visory authorities of non-United States jurisdic-
tions that provide a level of protection for 
United States reinsurance consumers that is 
substantially equivalent to the level of protec-
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tion achieved by the Director pursuant to the 
provisions of this subsection. 
‘‘(B) EXCHANGE OF INFORMATION.—The 
entry into supervisory arrangements with quali-
fied supervisory authorities of non-United 
States jurisdictions shall be preceded by an ex-
change and evaluation of relevant information 
regarding the form and nature of regulation in 
each such jurisdiction and the Secretary’s de-
termination that such jurisdiction’s supervisory 
authority maintains and applies legal standards, 
regulatory requirements, and enforcement capa-
bilities substantially equivalent to those applied 
by the Director, and that the awards of arbitra-
tion panels and judgments of appropriate 
United States courts are enforceable and col-
lectable in the jurisdiction, pursuant to treaty, 
other agreement, or operation of that jurisdic-
tion’s law. 
‘‘(C) REQUIREMENTS FOR VALIDITY.—The 
Secretary and the United States Trade Rep-
resentative may enter into supervisory arrange-
ments only in cases in which the Secretary has 
determined that the requirements of subpara-
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graph (B) have been satisfied and the arrange-
ment explicitly provides for all of the following: 
‘‘(i) Identification of areas of regula-
tion that will be the exclusive responsibility 
of the respective jurisdictions. 
‘‘(ii) The reciprocal treatment of rein-
surance entities in accordance with each 
subject jurisdiction’s rules and regulations. 
‘‘(iii) A commitment to exchange rel-
evant information on an on-going basis. 
‘‘(iv) A process for resolving disputed 
issues. 
‘‘(v) The application of chapter 15 of 
title 11 to cross-border insolvency cases in-
volving entities from the subject jurisdic-
tion. 
‘‘(vi) The terms and conditions for 
terminating the supervisory arrangement. 
‘‘(D) STATUS
OF
AUTHORIZED
FOREIGN 
REINSURERS.—An authorized foreign reinsurer 
shall be authorized to transact the business of 
reinsurance to the extent authorized by the ap-
plicable supervisory arrangement. 
‘‘(3) PREEMPTION OF STATE LAW.— 
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‘‘(A) INCONSISTENT LAWS.—All laws, reg-
ulations, provisions, or other actions of a State 
contrary to or inconsistent with the purposes of 
this subsection, except those which may be ap-
plicable to corporate taxes generally, are pre-
empted to the extent that they apply to national 
reinsurers or authorized foreign reinsurers, or 
to their reinsurance agreements. 
‘‘(B) LAWS
WITH
DISPARATE
TREAT-
MENT.—All laws, regulations, provisions, or 
other actions of a State are preempted to the 
extent that national reinsurers or authorized 
foreign reinsurers receive more or less favorable 
treatment than State licensed insurers or rein-
surers pursuant to such laws, regulations, pro-
visions, or other actions, solely on the basis of 
an entity’s status as a national reinsurer or au-
thorized foreign reinsurer. 
‘‘(C) PROHIBITION OF INTERFERENCE.— 
No State shall interfere, directly or indirectly, 
with a United States insurer or reinsurer— 
‘‘(i) applying for a Federal license or 
operating as a national reinsurer; or 
‘‘(ii) ceding insurance to a national 
reinsurer or an authorized foreign rein-
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surer for any purpose under this sub-
section. 
‘‘(D) CREDIT
FOR
REINSURANCE.—No 
State shall deny credit, either as an asset or a 
reduction of liabilities, on account of reinsur-
ance ceded to a national reinsurer or an author-
ized foreign reinsurer under this subsection. 
‘‘(E) PROHIBITION
OF
ENFORCEMENT.— 
No State shall enforce a State law, regulation, 
provision, or other action to the extent that it 
is preempted pursuant to this paragraph. 
‘‘(F) DETERMINATIONS BY DIRECTOR.— 
‘‘(i) 
PREEMPTION.—The 
Director 
shall be authorized to determine that any 
State law, regulation, provision, or action 
shall be preempted pursuant to this para-
graph. 
‘‘(ii) JUDICIAL
REVIEW.—Any State 
or any other person aggrieved by action of 
the Director under this paragraph may 
seek judicial review in the manner specified 
in chapter 7 of title 5. 
‘‘(4) COOPERATION BETWEEN THE DIRECTOR 
AND STATE INSURANCE REGULATORS.—The Direc-
tor shall— 
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‘‘(A) consult, as the Director deems appro-
priate, with the relevant State insurance regu-
lators concerning regulatory matters; 
‘‘(B) notify all State insurance regulators 
of supervisory arrangements entered into pursu-
ant to paragraph (2); and 
‘‘(C) notify the relevant State insurance 
regulators of a change in the status of, or any 
administrative action taken by the Director 
against, a national reinsurer or an authorized 
foreign reinsurer. 
‘‘(5) RULES AND REGULATIONS.— 
‘‘(A) IN
GENERAL.—The Director shall 
adopt regulations implementing the provisions 
of this subsection. The Director may issue any 
other rules, regulations, orders, or interpreta-
tions as the Director determines to be necessary 
to carry out the purposes of this subsection. 
‘‘(B) CRITERIA.—The rules and regula-
tions prescribed under subparagraph (A) shall 
give due consideration to— 
‘‘(i) promoting financially secure rein-
surance recoverables and capacity that pro-
tects the solvency of United States ceding 
insurers; 
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‘‘(ii) the need for a competitive and 
healthy reinsurance market that provides 
sufficient capacity to meet ceding compa-
nies’ risk management needs through open 
market contracting and pricing practices; 
‘‘(iii) global capital and risk manage-
ment, taking into account capital ade-
quacy, assessment of internal controls, rec-
ognition of qualified internal capital mod-
els, and effective corporate governance; 
‘‘(iv) financial transparency that en-
courages and supports the cedents’ ability 
to assess counter party credit risk, includ-
ing information regarding the national re-
insurer’s financial condition and the na-
tional reinsurer’s performance in paying 
covered claims; 
‘‘(v) access to all necessary financial 
information, with appropriate provision for 
the confidentiality of that information; and 
‘‘(vi) harmonization with international 
standards for the prudential regulation of 
the business of reinsurance. 
‘‘(6) IMPLEMENTATION.— 
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‘‘(A) LICENSING.—The Director shall com-
mence licensing of national reinsurers and the 
entry into supervisory arrangements after pro-
mulgation of final rules and regulations under 
this subsection, which shall occur not later than 
the expiration of the 2-year period beginning on 
the date of the enactment of this subsection. 
‘‘(B) APPLICABILITY.—The provisions of 
this subsection shall apply only to reinsurance 
agreements and supervisory arrangements en-
tered into on or after the date of the enactment 
of this subsection. 
‘‘(7) EFFECT OF STATUS.—There shall be no 
determination under section 113 of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act 
that an entity is subject to supervision by the Board 
of Governors of the Federal Reserve System and 
subject to prudential standards (as such term is de-
fined in such Act), in accordance with title I of such 
Act, on account of an entity’s status as a national 
reinsurer or authorized foreign reinsurer.’’; 
(7) in subsection (k)(1), as so redesignated, by 
inserting ‘‘except as provided in subsection (h),’’ be-
fore ‘‘preempt—’’; 
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(8) in subsection (l), as so redesignated, by 
striking ‘‘Nothing’’ and inserting ‘‘Except as pro-
vided in subsections (c) and (h), nothing’’; and 
(9) in subsection (s), as so redesignated— 
(A) by redesignating paragraphs (2), (3), 
(4), (5), (6), (7), (8), (9), and (10) as para-
graphs (3), (4), (6), (8), (9), (12), (13), (14), 
and (15), respectively; 
(B) by inserting after paragraph (1) the 
following new paragraph: 
‘‘(2) AUTHORIZED FOREIGN REINSURER.—The 
term ‘authorized foreign reinsurer’ means a rein-
surer that is domiciled in and subject to the regula-
tion of a non-United States jurisdiction’s supervisory 
authority that has entered into a supervisory ar-
rangement with the Director.’’; 
(C) by inserting after paragraph (4), as so 
redesignated, the following new paragraph: 
‘‘(5) FEDERAL BANKING AGENCY.—The term 
‘Federal banking agency’ shall have the meaning 
give such term under section 2 of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act.’’; 
(D) by inserting after paragraph (6), as so 
redesignated, the following new paragraph: 
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‘‘(7) NATIONAL
REINSURER.—The term ‘na-
tional reinsurer’ means an entity to which the Direc-
tor has issued a Federal license under subsection 
(h)(1) to transact the business of reinsurance.’’; and 
(E) by inserting after paragraph (9), as so 
redesignated, the following new paragraphs: 
‘‘(10) REINSURANCE.—The term ‘reinsurance’ 
means the assumption by an insurer of all or part 
of a risk undertaken originally by another insurer. 
‘‘(11) 
REINSURER.—The 
term 
‘reinsurer’ 
means, as determined by the Director, an insurer, to 
the extent that the insurer— 
‘‘(A) is principally engaged in the business 
of reinsurance; 
‘‘(B) does not conduct significant amounts 
of direct insurance as a percentage of its net 
premiums; and 
‘‘(C) is not engaged in an ongoing basis in 
the business of soliciting direct insurance.’’. 
SEC. 3. AMENDMENTS TO DODD-FRANK. 
(a) SECTION 111.—Section 111(b) of the Dodd- 
Frank Wall Street Reform and Consumer Protection Act 
is amended— 
(1) in paragraph (1)— 
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(A) in subparagraph (I), by striking ‘‘and’’ 
at the end; 
(B) by redesignating subparagraph (J) as 
subparagraph (K); and 
(C) by inserting after subparagraph (I) the 
following new subparagraph: 
‘‘(J) the Director of the Federal Insurance 
Office; and’’; and 
(2) in paragraph (2)— 
(A) by striking subparagraph (B); and 
(B) by redesignating subparagraphs (C), 
(D), and (E) as subparagraphs (B), (C), and 
(D), respectively. 
(b) SECTION 112.—Section 112 of such Act is 
amended— 
(1) in subsection (a)(2), by striking ‘‘the Fed-
eral Insurance Office’’; and 
(2) in subsection (d)— 
(A) in paragraph (1), by striking ‘‘, mem-
ber agencies, and the Federal Insurance Office’’ 
and inserting ‘‘and member agencies’’; 
(B) in paragraph (2), by striking ‘‘, any 
member agency, and the Federal Insurance Of-
fice,’’ and inserting ‘‘and any member agency’’. 
Æ 
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