153 
more protected cells with the approval of the Commis-
sioner. 
(b) PROTECTED CELL ASSETS.— 
(1) OWNERSHIP.—All amounts attributed to a 
protected cell established under this section, includ-
ing assets transferred to a protected cell account, 
shall be owned by the national insurer. 
(2) TRUSTEE.—The national insurer may not 
be, nor hold itself out to be, a trustee with respect 
to the protected cell assets of the protected cell ac-
count described in paragraph (1). 
(3) LIABILITIES.—The assets of a protected cell 
established under this section shall not be chargeable 
with liabilities arising out of any other business of 
the national insurer. 
(c) SECURITY INTERESTS PERMITTED.—A national 
insurer may allow for a security interest to attach to pro-
tected cell assets or a protected cell account if the security 
interest is in favor of a creditor of the protected cell and 
otherwise allowed under applicable law. 
(d) REACH
OF CREDITORS
AND OTHER CLAIM-
ANTS.— 
(1) AVAILABILITY.—Protected cell assets shall 
only be available to the creditors of a national in-
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154 
surer that are creditors in respect to that protected 
cell. 
(2) RECOURSE.—Creditors with respect to a 
protected cell shall have no recourse against the pro-
tected cell assets of other protected cells or the gen-
eral account assets of the national insurer. 
(3) FRAUD.—The establishment of a protected 
cell shall not, in and of itself, constitute a fraudulent 
conveyance, an intent by a national insurer to de-
fraud creditors, or the carrying out of business by 
a national insurer for any other fraudulent purpose. 
(e) RULEMAKING.—The Commissioner shall promul-
gate regulations that establish standards for protected 
cells established by national insurers. 
(f) EFFECT ON STATE LAW.—No State may, by stat-
ute, regulation, order, interpretation, or otherwise, require 
licensing or otherwise regulate in any manner— 
(1) an investor in an insurance securitization, 
solely by reason of its investment, as an insurer, re-
insurer, or other person transacting insurance; or 
(2) an underwriter or selling agent (or its part-
ners, directors, officers, members, managers, em-
ployees, agents, representatives, or advisors) in an 
insurance securitization as an insurance or reinsur-
ance agent, broker, producer, intermediary, advisor, 
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155 
consultant, or similar insurance professional by vir-
tue of its activities in connection with the insurance 
securitization. 
SEC. 1211. CHARTERING AND LICENSING COMMENCEMENT 
DATE. 
(a) NATIONAL INSURER.—The Commissioner may 
not charter or license a national insurer until after the 
following regulations have been published in final form or 
interim final form: 
(1) The fee and assessment regulations required 
by section 1122. 
(2) The reporting regulations required by sec-
tion 1124. 
(3) The organizational regulations required by 
section 1201. 
(4) The licensing regulations required by sec-
tion 1203. 
(5) The participating policy procedures regula-
tions required by section 1205. 
(6) The charter conversion regulations required 
by section 1206. 
(7) The transitional financial regulations re-
quired by section 1212. 
(8) The product regulations required by section 
1214. 
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(9) The market conduct regulations required by 
section 1216. 
(10) The control regulations required by section 
1231. 
(11) The merger, consolidation, and acquisition 
regulations required by section 1232. 
(12) The bulk transfer regulations required by 
section 1233. 
(13) The conversion regulations required by 
sections 1242 and 1243. 
(14) The holding company regulations required 
by sections 1402 and 1403. 
(15) The receivership regulations required by 
section 1504. 
(16) The insolvency protection regulations re-
quired by section 1609. 
(b) NATIONAL AGENCIES.—The Commissioner may 
charter or license a national agency after the following 
regulations have been published in final form, including 
interim final form: 
(1) The fee and assessment regulations required 
by section 1122. 
(2) The reporting regulations required by sec-
tion 1124. 
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(3) The organizational regulations required by 
section 1201. 
(4) The charter conversion regulations required 
by section 1206. 
(5) The market conduct regulations required by 
section 1216. 
(6) The merger, consolidation, and acquisition 
regulations required by section 1232. 
(7) The producer licensing regulations required 
by section 1301. 
(8) The holding company regulations required 
by sections 1402 and 1403. 
(c) TIMING AND NOTICE.— 
(1) TIMING.—The regulations described in sub-
sections (a) and (b) shall be published in final form 
or interim final form, not later than 2 years after 
the date of the initial appointment and confirmation 
of the Commissioner. 
(2) NOTICE.—At such time as the regulations 
described in subsections (a) or (b) have been issued 
in final form or interim final form, the Commis-
sioner shall publish a notice in the Federal Register 
announcing that the Office is prepared to act on 
chartering and licensing applications. 
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(3) CONSIDERING AND ACTING UPON APPLICA-
TIONS.—Notwithstanding any challenge to the regu-
lations described in subsections (a) and (b), the 
Commissioner shall have the authority to consider, 
and act upon, chartering and licensing applications 
immediately upon publication of the notice described 
in paragraph (2). 
Subtitle B—Financial, Product, and 
Market Regulations 
SEC. 1212. TRANSITIONAL FINANCIAL REGULATIONS. 
(a) PROMULGATION
OF FINANCIAL REGULATIONS 
THAT ARE CONSISTENT WITH NAIC STANDARDS AND 
MODELS.—The Commissioner shall establish, by regula-
tion, the following: 
(1) Accounting principles for a national insurer, 
which are consistent with the statutory accounting 
practices promulgated by the NAIC in its ‘‘Account-
ing Practices and Procedures Manual’’. 
(2) Auditing standards for a national insurer, 
which are consistent with the guidance prescribed by 
the NAIC in its ‘‘Model Regulation Requiring An-
nual Audited Financial Reports’’. 
(3) Investment standards for a national insurer, 
which are consistent with the ‘‘Investment of Insur-
ers Model Act (Defined Standards Version)’’ of the 
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