tablish standards for suspending and revoking such certifi-
cations under this section.
SEC. 303. REQUESTS FOR LIQUIDITY ASSISTANCE.
(a) IN GENERAL.—The Administrator shall establish
standards and procedures under this section for insurance
companies certified under section 302 to apply for the ap-
proval of the Administrator for a request for liquidity as-
sistance pursuant to section 13B of the Federal Reserve
Act and for the Administrator to approve such applica-
tions.
(b) CONTENTS.—The standards established under
this section shall provide that the Administrator may ap-
prove an application for a request for liquidity assistance
pursuant to section 13B of the Federal Reserve Act only
if—
(1) the application is submitted by an insurance
company certified under section 302;
(2) the Administrator determines that the in-
surance company submitting the request is threat-
ened by a liquidity crisis resulting from policyholder
withdrawals;
(3) the Administrator determines that short-
term credit is not otherwise available to the insur-
ance company; and
(4) the Administrator determines that such li-
quidity assistance is appropriate for the company
considering the circumstances of the company and is
likely to assist the company in withstanding the li-
quidity crisis.
(c) COPIES TO BOARD AND STATE INSURANCE REG-
ULATORY AUTHORITY.—Any insurance company submit-
ting an application under this section to the Administrator
for approval of a request for liquidity assistance shall sub-
mit a copy of the application to the Board of Governors
of the Federal Reserve System and any appropriate State
insurance regulatory authority.
(d) CONTENTS OF APPLICATION.—Any application
under this section shall contain—
(1) evidence of the certification of the insurance
company under section 302; and
(2) a certification by the insurance company
that, as of the date of such application, the company
is and, during the 12-month period ending on such
date, has been in compliance with the minimum fi-
nancial resource and solvency requirements of the
Administrator established under section 302(b)(2)
and any appropriate State insurance regulatory au-
thority.
SEC. 304. REPORT.
The Administrator shall submit an annual report to
the Committee on Banking, Finance and Urban Affairs
of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate on—
(1) any insurance companies certified under
section 302 or denied certification under such sec-
tion, during the year covered by the report; and
(2) any insurance companies for which applica-
tions for requests for liquidity assistance were ap-
proved or for which such applications were denied,
during the year covered by the report.
SEC. 305. PROVISION OF LIQUIDITY ASSISTANCE TO INSUR-
ANCE COMPANIES BY FEDERAL RESERVE
BANKS.
The Federal Reserve Act (12 U.S.C. 221 et seq.) is
amended by inserting after section 13A the following new
section:
‘‘SEC. 13B. PROCEDURES APPLICABLE TO LIQUIDITY AS-
SISTANCE TO INSURANCE COMPANIES.
‘‘(a) IN GENERAL.—For the purpose of ensuring that
liquidity assistance is available on an objective basis to any
well-capitalized insurance company that is threatened by
a liquidity crisis resulting from policyholder withdrawals
and the unavailability of short-term credit, and in addition
to any other procedure or condition established under this
Act, the procedures and conditions established under this
section shall apply to liquidity assistance provided by any
Federal Reserve bank under this Act to any insurance
company certified and approved under title III of the Fed-
eral Insurance Administration Act.
‘‘(b) ELIGIBILITY.—An insurance company may ob-
tain liquidity assistance under this Act under the same
terms and conditions as a member bank, but only if the
company is certified by the Federal Insurance Adminis-
trator to be eligible for such assistance in accordance with
the procedures established under section 302 of the Fed-
eral Insurance Administration Act and an application for
a request for such liquidity assistance has been approved
by the Administrator in accordance with the procedures
established under section 303 of such Act.
‘‘(c) TERMS AND CONDITIONS OF ASSISTANCE.—
‘‘(1) IN
GENERAL.—Liquidity assistance may
be provided under this Act by a Federal Reserve
bank only in the amount, and to the extent, that
such assistance is requested in an application ap-
proved by the Federal Insurance Administrator
under section 303 of the Federal Insurance Admin-
istration Act.
‘‘(2) COMPARABLE TERMS.—Any liquidity as-
sistance provided under this Act by any Federal Re-
serve bank to any insurance company shall be made
for such period of time and at such financing costs
as are generally applicable to advances to depository
institutions (as defined in section 19(b)(1)(A))
under sections 10, 10A, and 10B.
‘‘(3) NOTIFICATION OF LIQUIDITY ASSISTANCE
AND DENIAL OF ASSISTANCE TO FIA.—Any Federal
Reserve bank which provides or denies liquidity as-
sistance under this Act to any insurance company
shall provide prompt notice of such assistance or de-
nial to the Federal Insurance Administrator any ap-
propriate State insurance regulatory authority,
which shall include the amount of assistance pro-
vided or denied and the reason for any such denial.
‘‘(d) LIQUIDITY ASSISTANCE DEFINED.—For pur-
poses of this section, the term ‘liquidity assistance’ means,
with respect to any insurance company—
‘‘(1) any advance made by any Federal Reserve
bank under this Act to the insurance company; or
‘‘(2) the discounting by any such bank under
this Act of any note, draft, bill, or other obligation
issued, drawn, or endorsed by the insurance com-
pany.