231
tivities in which such national bank or subsidiary
was actively and lawfully engaged before the date of
the enactment of this Act.
(2) INSURANCE AFFILIATE.—In the case of a
national bank which has an affiliate which provides
insurance as principal and is not a subsidiary of the
bank, the national bank and any subsidiary of the
national bank may not engage in any activity involv-
ing the underwriting or sale of title insurance pursu-
ant to paragraph (1).
(3) INSURANCE SUBSIDIARY.—In the case of a
national bank which has a subsidiary which provides
insurance as principal and has no affiliate which
provides insurance as principal and is not a subsidi-
ary, the national bank may not engage in any activ-
ity involving the underwriting or sale of title insur-
ance pursuant to paragraph (1).
(4) AFFILIATE
AND
SUBSIDIARY
DEFINED.—
For purposes of this section, the terms ‘‘affiliate’’
and ‘‘subsidiary’’ have the meaning given such terms
in section 2 of the Bank Holding Company Act of
1956.
(b)
PARITY
EXCEPTION.—Notwithstanding
sub-
section (a), in the case of any State in which banks orga-
nized under the laws of such State were authorized to sell
232
title insurance as agent as of January 1, 1997, a national
bank and a subsidiary of a national bank may sell title
insurance as agent in such State in the same manner and
to the same extent such State banks are authorized to sell
title insurance as agent in such State.
SEC. 307. EXPEDITED AND EQUALIZED DISPUTE RESOLU-
TION FOR FINANCIAL REGULATORS.
(a) FILING IN COURT OF APPEAL.—In the case of
a regulatory conflict between a State insurance regulator
and a Federal regulator as to whether any product is or
is not insurance as defined in section 304(c) of this Act,
or whether a State statute, regulation, order, or interpre-
tation regarding any insurance sales or solicitation activity
is properly treated as preempted under Federal law, either
regulator may seek expedited judicial review of such deter-
mination by the United States Court of Appeals for the
circuit in which the State is located or in the United
States Court of Appeals for the District of Columbia Cir-
cuit by filing a petition for review in such court.
(b) EXPEDITED REVIEW.—The United States court
of appeals in which a petition for review is filed in accord-
ance with paragraph (1) shall complete all action on such
petition, including rendering a judgment, before the end
of the 60-day period beginning on the date such petition
233
is filed, unless all parties to such proceeding agree to any
extension of such period.
(c) SUPREME COURT REVIEW.—Any request for
certiori to the Supreme Court of the United States of any
judgment of a United States court of appeals with respect
to a petition for review under this section shall be filed
with the United States Supreme Court as soon as prac-
ticable after such judgment is issued.
(d) STATUTE OF LIMITATION.—No action may be
filed under this section challenging an order, ruling, deter-
mination, or other action of a Federal financial regulator
or State insurance regulator after the later of—
(1) the end of the 12-month period beginning
on the date the first public notice is made of such
order, ruling, or determination in its final form; or
(2) the end of the 6-month period beginning on
the date such order, ruling, or determination takes
effect.
(e) STANDARD OF REVIEW.—The court shall decide
an action filed under this section based on its review on
the merits of all questions presented under State and Fed-
eral law, including the nature of the product or activity
and the history and purpose of its regulation under State
and Federal law, without unequal deference.
234
SEC. 308. CONSUMER PROTECTION REGULATIONS.
(a) REGULATIONS REQUIRED.—
(1) IN GENERAL.—The Federal Deposit Insur-
ance Act (12 U.S.C. 1811 et seq.) is amended by
adding at the end the following new section:
‘‘SEC. 45. CONSUMER PROTECTION REGULATIONS.
‘‘(a) REGULATIONS REQUIRED.—
‘‘(1) IN GENERAL.—The Federal banking agen-
cies shall prescribe and publish in final form, before
the end of the 1-year period beginning on the date
of the enactment of this Act, consumer protection
regulations (which the agencies jointly determine to
be appropriate) that—
‘‘(A) apply to retail sales practices, solici-
tations, advertising, or offers of any insurance
product by any insured depository institution or
wholesale financial institution or any person
who is engaged in such activities at an office of
the institution or on behalf of the institution;
and
‘‘(B) are consistent with the requirements
of this Act and provide such additional protec-
tions for consumers to whom such sales, solici-
tations, advertising, or offers are directed as
the agency determines to be appropriate.
235
‘‘(2) APPLICABILITY
TO
SUBSIDIARIES.—The
regulations prescribed pursuant to paragraph (1)
shall extend such protections to any subsidiaries of
an insured depository institution, as deemed appro-
priate by the regulators referred to in paragraph (3),
where such extension is determined to be necessary
to ensure the consumer protections provided by this
section.
‘‘(3)
CONSULTATION
AND
JOINT
REGULA-
TIONS.—The Federal banking agencies shall consult
with each other and prescribe joint regulations pur-
suant to paragraph (1), after consultation with the
State insurance regulators, as appropriate.
‘‘(b) SALES PRACTICES.—The regulations prescribed
pursuant to subsection (a) shall include anticoercion rules
applicable to the sale of insurance products which prohibit
an insured depository institution from engaging in any
practice that would lead a consumer to believe an exten-
sion of credit, in violation of section 106(b) of the Bank
Holding Company Act Amendments of 1970, is condi-
tional upon—
‘‘(1) the purchase of an insurance product from
the institution or any of its affiliates or subsidiaries;
or
236
‘‘(2) an agreement by the consumer not to ob-
tain, or a prohibition on the consumer from obtain-
ing, an insurance product from an unaffiliated en-
tity.
‘‘(c) DISCLOSURES AND ADVERTISING.—The regula-
tions prescribed pursuant to subsection (a) shall include
the following provisions relating to disclosures and adver-
tising in connection with the initial purchase of an insur-
ance product:
‘‘(1) DISCLOSURES.—
‘‘(A) IN GENERAL.—Requirements that the
following disclosures be made orally and in writ-
ing before the completion of the initial sale and,
in the case of clause (iv), at the time of applica-
tion for an extension of credit:
‘‘(i) UNINSURED STATUS.—As appro-
priate, the product is not insured by the
Federal
Deposit
Insurance
Corporation,
the United States Government, or the in-
sured depository institution.
‘‘(ii) INVESTMENT RISK.—In the case
of a variable annuity or other insurance
product which involves an investment risk,
that there is an investment risk associated