priate for insurers and are not bank-centric in na-
ture. 
(3) To promote a principles-based approach to 
insurance supervision, in which capital adequacy is 
assessed using risk-based capital requirements for in-
surance combined with qualitative risk assessment 
and management tools. 
(4) To consider the most efficient and least dis-
ruptive approaches to enhancing regulatory assess-
ment of the capital adequacy of insurance groups, in-
cluding tools that are already in place. 
(5) To ensure that any international insurance 
standard recognizes prudential measures used within 
the United States as satisfying standards finalized by 
international standard-setting organizations. 
(6) To support increasing transparency at any 
global insurance or international standard-setting or-
ganization in which the United States participates, 
including advocating for greater stakeholder public 
observer access to working groups and committee 
meetings of the International Association of Insurance 
Supervisors. 
(7) To ensure that there is a sufficient period for 
public consultation and comment regarding any pro-
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posed international insurance standard before it takes 
effect. 
(8) To ensure that the Secretary of the Treasury 
and the Board of Governors of the Federal Reserve 
System achieve consensus positions with State insur-
ance commissioners when the Secretary and the 
Board are United States participants in discussions 
on insurance issues before the International Associa-
tion of Insurance Supervisors, Financial Stability 
Board, or any other international forum of financial 
regulators or supervisors that considers such issues. 
(9) To consider the impact of any such standard 
on the availability and cost of products to consumers. 
(10) To avoid measures that could limit the 
availability and accessibility of risk protection and 
retirement security products that are essential to 
meeting the needs of aging populations. 
(11) To ensure that the merits of existing State- 
based capital standards are recognized and incor-
porated in any domestic or global insurance capital 
standard. 
(12) To advocate for insurance regulatory stand-
ards that are based on the nature, scale, and com-
plexity of the risks posed by the regulated insurance 
group and entity or activity. 
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SEC. 4. REQUIREMENTS FOR CONSENT TO ADOPT INTER-
NATIONAL INSURANCE STANDARDS. 
(a) PUBLICATION OF STANDARDS; ADOPTION OF CAP-
ITAL AND PRUDENTIAL STANDARDS.—The United States 
may not agree to, accept, establish, enter into, or consent 
to the adoption of a final international insurance standard 
with an international standard-setting organization or a 
foreign government, authority, or regulatory entity unless 
the requirements under both of the following paragraphs are 
complied with: 
(1) PUBLICATION.—The requirements under this 
paragraph are complied with if the conditions under 
one of the following subparagraphs have been met: 
(A) BY
FEDERAL
RESERVE
AND
TREAS-
URY.—The Chairman of the Board of Governors 
of the Federal Reserve System and the Secretary 
of the Treasury have caused the proposed text of 
the proposed final international insurance stand-
ard to be published in the Federal Register and 
made available for public comment for a period 
of not fewer than 30 days (which period may 
run concurrently with the 90-day period referred 
to in subsection (b)(3)). 
(B) 
BY
STATE
INSURANCE
COMMIS-
SIONERS.—The State insurance commissioners 
have caused the proposed text of the proposed 
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international insurance standard to be published 
in a similar form and manner that provides for 
notice and public comment. 
(2) CAPITAL STANDARD.—In the case only of a 
final international insurance standard setting forth 
any capital standard or standards for insurers— 
(A) such international capital standard is 
consistent with capital requirements set forth in 
the State-based system of insurance regulation; 
(B) the Board has issued capital require-
ments for insurance companies supervised by the 
Board and subject to such requirements, which 
shall be issued through rulemaking in accordance 
with the procedures established under section 553 
of title 5, United States Code, regarding sub-
stantive rules, under which the periods for notice 
and public comment shall each have a duration 
of not fewer than 60 days; and 
(C) to the extent that such international 
capital standard is intended to be applied to a 
company or companies supervised by the Board 
of Governors of the Federal Reserve System, is 
consistent with the capital requirements of the 
Board for such companies. 
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(b) SUBMISSION AND LAYOVER PROVISIONS.—The Sec-
retary and the Board may not agree to, accept, establish, 
enter into, or consent to the adoption of an international 
insurance standard established through an international 
standard-setting organization or a foreign government, au-
thority, or regulatory entity unless— 
(1) the Secretary and the Board have— 
(A) conducted an analysis under subsection 
(c) of the proposed international insurance 
standard; and 
(B) submitted to the covered congressional 
committees, on a day on which both Houses of 
Congress are in session, a copy of the proposed 
final text of the proposed international insurance 
standard and the report required under sub-
section (c)(2) regarding such analysis; 
(2) the Secretary and the Chairman of the Board 
have determined, pursuant to such analysis, that the 
proposed standard will not result in any change in 
State law; 
(3) with respect to a capital standard under sub-
section (a)(2), the Secretary and the Chairman of the 
Board certify that the proposed international capital 
standard is designed solely to help ensure that suffi-
cient funds are available to pay claims to an insur-
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er’s policyholders in the event of the liquidation of 
that entity; and 
(4) a period of 90 calendar days beginning on 
the date on which the copy of the proposed final text 
of the standard is submitted to the covered congres-
sional committees under paragraph (1)(B) has ex-
pired, during which period the Congress may take ac-
tion to approve or reject such final standard. 
(c) JOINT ANALYSIS BY CHAIR OF THE FEDERAL RE-
SERVE AND SECRETARY OF THE TREASURY.— 
(1) IN GENERAL.—An analysis under this sub-
section of a proposed final international insurance 
standard shall be an analysis conducted by the Sec-
retary and the Chairman of the Board of Governors 
of the Federal Reserve System, in consultation with 
the State insurance commissioners, of the impact of 
such standard on consumers and markets in the 
United States and whether any changes in State law 
will result from such final standard. 
(2) REPORT.—Upon completion of an analysis 
under this subsection of a final international insur-
ance standard, the Secretary and the Board shall sub-
mit a report on the results of the analysis to the cov-
ered congressional committees and the Comptroller 
General of the United States. The report shall include 
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a statement setting forth the determination made pur-
suant to paragraph (1) regarding any changes in 
State law resulting from such final standard. 
(3) NOTICE AND COMMENT.— 
(A) NOTICE.—The Secretary and the Chair-
man of the Board of Governors of the Federal 
Reserve System shall provide notice before the 
date on which drafting the report is commenced 
and after the date on which the draft of the re-
port is completed. 
(B) OPPORTUNITY
FOR
COMMENT.—There 
shall be an opportunity for public comment for 
a period beginning on the date on which the re-
port is submitted under paragraph (2) and end-
ing on the date that is not fewer than 60 days 
after the date on which the report is submitted. 
Nothing in this subparagraph shall affect the au-
thority of the Board to issue the rule referred to 
in subsection (a)(2). 
(4) REVIEW BY COMPTROLLER GENERAL.—Upon 
submission of a report pursuant to paragraph (2) to 
the Comptroller General, the Comptroller General 
shall review the report and shall submit a report to 
the Congress setting forth the conclusions of the 
Comptroller General’s review. 
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(d) LIMITED EFFECT.—This section may not be con-
strued to establish or expand any authority to implement 
an international insurance standard in the United States 
or for the United States or any representative of the Federal 
Government to adopt or enter into any international insur-
ance standard. 
(e) TREATMENT OF STATE LAW.—In accordance with 
the Act of March 9, 1945 (Chapter 20; 59 Stat. 33; 15 
U.S.C. 1011 et seq.), commonly referred to as the 
‘‘McCarran-Ferguson Act’’, this section may not be con-
strued to preempt State law. 
SEC. 5. REPORTS. 
(a) REPORTS AND TESTIMONY BY SECRETARY OF THE 
TREASURY AND CHAIR OF THE FEDERAL RESERVE.—The 
Secretary and the Chairman of the Board of Governors of 
the Federal Reserve System shall submit to the covered con-
gressional committees an annual report and provide testi-
mony, not less often than every 6 months, to the covered 
congressional committees on the efforts of the Secretary and 
the Chairman with the State insurance commissioners with 
respect to international insurance standard-setting organi-
zations and international insurance standards, including— 
(1) a description of the insurance standard-set-
ting issues under discussion at international stand-
ard-setting bodies, including the Financial Stability 
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Board and the International Association of Insurance 
Supervisors; 
(2) a description of the effects that international 
insurance standards could have on consumers and in-
surance markets in the United States; 
(3) a description of any position taken by the 
Secretary and the Board in international insurance 
discussions or on any international insurance stand-
ard; 
(4) a description of the efforts by the Secretary 
and the Board to increase transparency and account-
ability at the Financial Stability Board with respect 
to insurance proposals and the International Associa-
tion of Insurance Supervisors, including efforts to 
provide additional public access to working groups 
and committees of the International Association of 
Insurance Supervisors; and 
(5) a description of how the Secretary and the 
Board are meeting the objectives set forth in section 
3, or, if such objectives are not being met, an expla-
nation of the reasons for not meeting such objectives. 
(b) REPORTS AND TESTIMONY BY STATE INSURANCE 
COMMISSIONERS.—The State insurance commissioners may 
provide testimony or reports to the Congress on the issues 
described in subsection (a). 
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(c) REPORT ON TRANSPARENCY.—Not later than 180 
days after the date of enactment of this Act, the Chairman 
of the Board of Governors of the Federal Reserve System 
and the Secretary shall submit to the Congress a report and 
provide testimony to the Congress on the efforts of the 
Chairman and the Secretary pursuant to subsection (a)(4) 
of this section to increase transparency at meetings of the 
International Association of Insurance Supervisors. 
(d) GAO REPORT ON TRANSPARENCY OF OUTSIDE OR-
GANIZATIONS.— 
(1) IN GENERAL.—Not later than one year after 
the date of enactment of this Act, the Comptroller 
General of the United States shall submit to the cov-
ered congressional committees a report, and provide 
testimony to such committees, identifying and ana-
lyzing the transparency and accountability of any or-
ganization acting as a designee of, or at the direction 
of, the head of a State insurance department on issues 
related to international insurance standards, which is 
not employed directly by the State. 
(2) CONTENT.—The report and testimony re-
quired under this section shall include a description 
and analysis of— 
(A) the role, involvement, or relationship, of 
any organization identified pursuant to para-
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graph (1), of, with, or to the State insurance de-
partments’ activities as authorized by, directed 
by, or otherwise referred to in this Act, including 
a description and analysis regarding such orga-
nization’s participation in policy and decision- 
making deliberations and activities related to 
international insurance standards; 
(B) any financial support provided by such 
organization to any State insurance department 
personnel in furtherance of their activities re-
lated to international insurance standards, the 
nature and amount of such support, and any 
understandings between the organization and the 
State regarding travel protocols and State laws 
governing State officials’ receipt of, benefitting 
from, or being subsidized by, outside funds; 
(C) the budget, including revenues and ex-
penses, of any organization identified pursuant 
to paragraph (1) relating to participation in 
international insurance discussions on issues be-
fore, involving, or relating to the International 
Association of Insurance Supervisors, the Finan-
cial Stability Board, or any other international 
forum of financial regulators or supervisors that 
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considers such issues, and how the organization 
collects money to fund such activities; 
(D) whether each such budget of such an or-
ganization is developed under a process com-
parable in its transparency and accountability 
to the process under which budgets are developed 
and appropriated for State departments of in-
surance and Federal executive branch regulatory 
agencies, including— 
(i) an identification of any bodies 
independent of the organization that set 
standards for and/or oversee that organiza-
tion’s budgeting process; and 
(ii) a description of the extent to which 
and how the organization, in funding its 
operations, uses or benefits from its mem-
bers’ ability to compel entities subject to its 
members’ regulatory authority to use the 
services of the organization or any of its af-
filiates; and 
(E) the extent to which the work product of 
any organization identified pursuant to para-
graph (1)has the effect of establishing any self- 
executing national standards, and in what way, 
and whether such standards are developed under 
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processes comparable in their transparency and 
accountability to the process under which na-
tional standards are developed by the Congress 
or Federal executive branch agencies. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) BOARD.—The term ‘‘Board’’ means the 
Board of Governors of the Federal Reserve System, or 
the designee of the Board. 
(2) COVERED
CONGRESSIONAL
COMMITTEES.— 
The term ‘‘covered congressional committees’’ means 
the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing and Urban Affairs of the Senate. 
(3) INTERNATIONAL
INSURANCE
STANDARD.— 
The term ‘‘international insurance standard’’ means 
any international insurance supervisory standard de-
veloped by an international standards setting organi-
zation, or regulatory or supervisory forum, in which 
the United States participates, including the Common 
Framework for the Supervision of Internationally Ac-
tive Insurance Groups, the Financial Stability Board, 
and the International Association of Insurance Su-
pervisors. 
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(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury, or the Secretary’s des-
ignee. 
(5) STATE
INSURANCE
COMMISSIONERS.—The 
term ‘‘State insurance commissioners’’ means the 
heads of the State insurance departments or their des-
ignees acting at their direction. 
SEC. 7. TREATMENT OF COVERED AGREEMENTS. 
Section 314 of title 31, United States Code is amend-
ed— 
(1) in subsection (c)— 
(A) by redesignating paragraphs (1) and 
(2) as paragraphs (2) and (3), respectively; and 
(B) by inserting before paragraph (2), as so 
redesignated, the following new paragraph: 
‘‘(1) the Secretary of the Treasury and the 
United States Trade Representative have caused to be 
published in the Federal Register, and made available 
for public comment for a period of not fewer than 30 
days (which period may run concurrently with the 
90-day period for the covered agreement referred to in 
paragraph (3)), the proposed text of the covered agree-
ment;’’; and 
(2) by adding at the end the following new sub-
sections: 
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‘‘(d) CONSULTATION WITH STATE INSURANCE COM-
MISSIONERS.—In any negotiations regarding a con-
templated covered agreement, the Secretary and the United 
States Trade Representative shall consult with and directly 
include State insurance commissioners. 
‘‘(e) PROHIBITION ON REGULATORY AUTHORITY.—In 
accordance with subsections (k) and (l) of section 313, a 
covered agreement shall not be used to establish or provide 
the Federal Insurance Office or the Treasury with any gen-
eral supervisory or regulatory authority over the business 
of insurance or with the authority to participate in a super-
visory college or similar process. 
‘‘(f) TREATMENT UNDER OTHER LAW.—A covered 
agreement shall not be considered an international insur-
ance standard for purposes of the Transparent Insurance 
Standards Act of 2016 and shall not be subject to such 
Act.’’. 
SEC. 8. DUTIES OF INDEPENDENT MEMBER OF FINANCIAL 
STABILITY OVERSIGHT COUNCIL. 
Subsection (a) of section 112 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (12 U.S.C. 
5322(a)) is amended by adding at the end the following 
new paragraph: 
‘‘(3) DUTIES
OF
INDEPENDENT
MEMBER.—To 
assist the Council with its responsibilities to monitor 
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international insurance developments, advise Con-
gress, and make recommendations, the Independent 
Member of the Council shall have the authority to— 
‘‘(A) regularly consult with international 
insurance supervisors and international finan-
cial stability counterparts; 
‘‘(B) consult with, advise, and assist the 
Secretary of the Treasury with respect to rep-
resenting the Federal Government of the United 
States, as appropriate, in the International As-
sociation of Insurance Supervisors (including to 
become a non-voting member thereof), particu-
larly on matters of systemic risk, and to consult 
with the Board of Governors of the Federal Re-
serve System and the States concerning such 
matters; 
‘‘(C) attend the Financial Stability Board 
of The Group of Twenty and join with other 
members from the United States, including on 
matters related to insurance and financial sta-
bility, and provide for the attendance and par-
ticipation at such Board, on matters related to 
insurance and financial stability, of State insur-
ance commissioners; and 
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‘‘(D) attend, with the United States delega-
tion, the Organization for Economic Cooperation 
and Development and observe and participate at 
the Insurance and Private Pensions Committee 
of such Organization on matters related to insur-
ance and financial stability.’’. 
SEC. 9. STATE INSURANCE REGULATOR INVOLVEMENT IN 
INTERNATIONAL STANDARD SETTING. 
Parties representing the United States at the Finan-
cial Stability Board of the Group of Twenty on matters, 
and in meetings, related to insurance and financial sta-
bility shall consult with, and seek to include in such meet-
ings, the State insurance commissioners. 
SEC. 10. RULE OF CONSTRUCTION. 
Nothing in this Act or the amendments made by this 
Act may be construed to support or endorse the domestic 
capital standard for insurers referred to in section 4(a)(2) 
or any such domestic capital standards established by the 
Board. 
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Union Calendar No. 652 
114TH CONGRESS 
2D SESSION 
H. R. 5143 
[Report No. 114–831] 
A BILL 
To provide greater transparency and congressional 
oversight of international insurance standards 
setting processes, and for other purposes. 
NOVEMBER 22, 2016 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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