Title: State Insurance Regulation Preservation Act
Policy area: Finance and Financial Sector

Summary:
State Insurance Regulation Preservation Act
This bill provides for the registration of insurance savings and loan holding companies. Certain Federal Reserve Board (FRB) regulations as applied to these companies must be tailored to the insurance business and applicable state insurance requirements.
The bill generally excludes assets attributable to the business of insurance for the purpose of calculating whether these companies are subject to certain FRB assessments and fees.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3123 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 3123

To amend the Home Owners' Loan Act with respect to the registration and 
 supervision of insurance savings and loan holding companies, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 19, 2019

Mr. Tillis (for himself and Ms. Sinema) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Home Owners' Loan Act with respect to the registration and 
 supervision of insurance savings and loan holding companies, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Insurance Regulation 
Preservation Act''.

SEC. 2. SUPERVISION OF INSURANCE SAVINGS AND LOAN HOLDING COMPANIES.

    (a) Definitions.--Section 10(a)(1) of the Home Owners' Loan Act (12 
U.S.C. 1467a(a)(1)) is amended by adding at the end the following:
                    ``(K) Domicile.--The term `domicile' means the 
                State in which an insurance underwriting company or the 
                holding company for the insurance underwriting company 
                is incorporated, chartered, or organized.
                    ``(L) Business of insurance.--The term `business of 
                insurance' means any activity that is regulated in 
                accordance with the relevant State insurance laws and 
                regulations, including the writing of insurance and the 
                reinsuring of risks.
                    ``(M) Insurance savings and loan holding company.--
                The term `insurance savings and loan holding company' 
                means--
                            ``(i) a savings and loan holding company 
                        with 75 percent or more of its total 
                        consolidated assets in not less than 1 
                        insurance underwriting company, other than 
                        assets associated with insurance for credit 
                        risk, during the 4 most recent consecutive 
                        quarters, as calculated in accordance with 
                        generally accepted accounting principles or the 
                        statutory accounting principles in accordance 
                        with State law;
                            ``(ii) a company that--
                                    ``(I) was a savings and loan 
                                holding company as of July 21, 2010, 
                                and through date of enactment of this 
                                clause; and
                                    ``(II) was not subject to the Basel 
                                III capital regulation promulgated by 
                                the Board of Governors of the Federal 
                                Reserve System and the Comptroller of 
                                the Currency on October 11, 2013 (78 
                                Fed. Reg. 62018), because the savings 
                                and loan holding company held 25 
                                percent or more of its total 
                                consolidated assets in subsidiaries 
                                that are insurance underwriting 
                                companies (other than assets associated 
                                with insurance for credit risk); or
                            ``(iii) a top-tier savings and loan holding 
                        company that--
                                    ``(I) was registered as a savings 
                                and loan holding company before July 
                                21, 2010; and
                                    ``(II) is a New York not-for-profit 
                                corporation formed for the purpose of 
                                holding the stock of a New York 
                                insurance company.
                    ``(N) Insurance underwriting company.--The term 
                `insurance underwriting company' means an insurer that 
                is subject to regulation by a State insurance authority 
                of the domicile of the insurer.
                    ``(O) State insurance authority.--The term `State 
                insurance authority' means the State insurance 
                authority of the State in which an insurance 
                underwriting company or the holding company for the 
                insurance underwriting company is domiciled.
                    ``(P) Top-tier savings and loan holding company.--
                The term `top-tier savings and loan holding company' 
                means the ultimate parent company in a savings and loan 
                holding company structure.''.
    (b) Registration.--Section 10(b)(1) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(b)(1)) is amended by adding at the end the following: 
``A savings and loan holding company that is an insurance savings and 
loan holding company shall register as an insurance savings and loan 
holding company.''.
    (c) Reports.--Section 10(b)(2) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)(2)) is amended by adding at the end the following:
                    ``(D) Insurance savings and loan holding 
                companies.--The Board, to the fullest extent possible, 
                shall request reports and other information filed by 
                insurance savings and loan holding companies and any 
                insurance underwriting company that is a subsidiary of 
                the insurance savings and loan holding company with 
                other Federal authorities and the State insurance 
                authority for the insurance savings and loan holding 
                company before requesting those reports or information 
                from the insurance savings and loan holding company or 
                any insurance underwriting company that is a subsidiary 
                of the insurance savings and loan holding company.
                    ``(E) Rule of construction.--Nothing in this 
                section may be construed as prohibiting the Board from 
                requesting reports and other information that is not 
                otherwise collected and shared with other Federal or 
                State authorities.''.
    (d) Books and Records.--Section 10(b)(3) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(b)(3)) is amended--
            (1) by striking ``Each'' and inserting the following:
                    ``(A) In general.--Each''; and
            (2) by inserting at the end the following:
                    ``(B) Insurance savings and loan holding 
                companies.--The Board, to the fullest extent possible, 
                shall align any prescribed recordkeeping requirements 
                for an insurance savings and loan holding company with 
                the recordkeeping requirements imposed by the State 
                insurance authority of the insurance savings and loan 
                holding company and any insurance underwriting company 
                that is a subsidiary of the insurance savings and loan 
                holding company.''.
    (e) Examinations.--Section 10(b)(4)(C) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(b)(4)(C)) is amended--
            (1) in clause (i), by striking the word ``and'' at the end;
            (2) in clause (ii), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(iii) Insurance savings and loan holding 
                        companies.--
                                    ``(I) Coordination.--The Board, to 
                                the fullest extent possible, shall 
                                coordinate examinations of an insurance 
                                savings and loan holding company in 
                                conjunction with the State insurance 
                                authority of the insurance savings and 
                                loan holding company and any insurance 
                                underwriting company that is a 
                                subsidiary of insurance savings and 
                                loan holding company and other State 
                                and Federal authorities in order to 
                                minimize the potential for duplication 
                                and conflict between the examinations 
                                conducted by the Board and the 
                                examinations conducted by other State 
                                and Federal authorities.
                                    ``(II) Scope and frequency.--
                                Following public notice and comment, 
                                the Board shall establish a schedule 
                                for the frequency and the scope of 
                                examinations of insurance savings and 
                                loan holding companies that is 
                                consistent with the supervisory 
                                framework required under paragraph 
                                (7).''.
    (f) Supervision.--Section 10(b) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)) is amended by inserting at the end the following:
            ``(7) Insurance savings and loan holding companies.--
                    ``(A) Tailored supervision.--The Board, by rule, 
                shall establish a supervisory framework for insurance 
                savings and loan holding companies that--
                            ``(i) is tailored to the unique risks, 
                        operations, and activities of insurance savings 
                        and loan holding companies; and
                            ``(ii) to the fullest extent possible, and 
                        consistent with the safe and sound operation of 
                        insurance savings and loan holding companies, 
                        does not unnecessarily duplicate the 
                        supervision of insurance underwriting companies 
                        by the State insurance authorities for 
                        insurance savings and loan holding companies or 
                        insurance underwriting companies that are 
                        subsidiaries of insurance savings and loan 
                        holding companies.
                    ``(B) Review of supervisory guidance.--Following 
                public notice and comment, the Board shall review and 
                revise supervisory policy letters and guidance 
                applicable to insurance savings and loan holding 
                companies to ensure that those letters and guidance are 
                not inconsistent with the supervisory framework 
                required under this paragraph.''.

SEC. 3. ASSESSMENTS AND FEES FOR INSURANCE SAVINGS AND LOAN HOLDING 
              COMPANIES.

    The second subsection (s) of section 11 of the Federal Reserve Act 
(12 U.S.C. 248; relating to assessments and fees) is amended by adding 
at the end the following:
            ``(4) Excluded assets.--For purposes of paragraph (2)(B), 
        the total consolidated assets of an insurance savings and loan 
        holding company, as defined in section 10(a)(1) of the Home 
        Owners' Loan Act (12 U.S.C. 1467a(a)(1)), shall not include 
        assets attributable to the business of insurance conducted by 
        the insurance savings and loan holding company or any affiliate 
        of the insurance savings and loan holding company, other than 
        assets associated with insurance for credit risk.''.

SEC. 4. IMPLEMENTATION.

    (a) Definition of Board.--In this section, the term ``Board'' means 
the Board of Governors of the Federal Reserve System.
    (b) Implementation of Supervisory Framework.--Not later than 2 
years after the date of enactment of this Act, the Board shall 
establish the supervisory framework required under paragraph (7) of 
section 10(b) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)), as 
added by this Act.
    (c) Review of Supervisory Guidance.--Not later than 30 months after 
the date of enactment of this Act, the Board shall complete the review 
of supervisory policy letters and policy guidance required under 
paragraph (7) of section 10(b) of the Home Owners' Loan Act (12 U.S.C. 
1467a(b)), as added by this Act.
    (d) Report to Congress.--Not later than 3 years after the date of 
enactment of this Act, the Board shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report on the 
implementation of this Act.

SEC. 5. RELATIONSHIP TO OTHER LAWS.

    This Act and the amendments made by this Act shall not limit any 
authority over insurance savings and loan holding companies, as defined 
in section 10(a)(1) of the Home Owners' Loan Act (12 U.S.C. 
1467a(a)(1)), as added by this Act, that is provided by a Federal law 
other than the Home Owners' Loan Act (12 U.S.C. 1461 et seq.).

SEC. 6. RULEMAKING AUTHORITY.

    The Board may issue regulations and orders as may be necessary to--
            (1) administer and carry out this Act and the amendments 
        made by this Act; and
            (2) prevent evasions of this Act and the amendments made by 
        this Act.

SEC. 7. RULE OF CONSTRUCTION.

    Nothing in this Act or the amendments made by this Act may be 
construed to affect the authority of the Board of Governors of the 
Federal Reserve System over any subsidiary of an insurance savings and 
loan holding company that is not an insurance underwriting company, as 
those terms are defined in section 10(a)(1) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(a)(1)), as added by this Act.
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