Policyholder Protection Act of 2015

Bill: 114-hr-1478
Sponsor: Rep. Posey, Bill [R-FL-8]
Introduced: 2015-03-19 in the House
Policy area: Finance and Financial Sector
Subjects: Administrative law and regulatory procedures
Bank accounts, deposits, capital
Banking and financial institutions regulation
Bankruptcy
Federal Reserve System
Financial crises and stabilization
Insurance industry and regulation

Summary:
action_date: 2015-03-19
text: 

Policyholder Protection Act of 2015

 
This bill amends the Federal Deposit Insurance Act to declare that any action of the Federal Deposit Insurance Corporation (FDIC) that requires a bank holding company to provide funds or other assets to a subsidiary depository institution is neither effective nor enforceable with respect to a savings and loan holding company that is also an insurance company, an affiliate of an insured depository institution that is an insurance company, or any other company that is an insurance company and directly or indirectly controls an insured depository institution (entities) if:
 
 
such funds or assets are to be provided by the entity, and
 
the relevant state insurance authority determines that such an action would have a materially adverse effect on the entity's financial condition.
 
 
The bill declares that requiring a bank holding company that is an insurance company to serve as a source of financial strength shall be deemed the kind of action of the Board of Governors of the Federal Reserve System that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for specified purposes of the Bank Holding Company Act of 1956. 
 
The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended, with respect to systemic risk determination and the treatment of insurance companies and their subsidiaries, to authorize the FDIC to stand in the place of the appropriate regulatory agency and file a judicial action to place such companies into orderly rehabilitation under state law if the appropriate regulatory agency has not done so.
 
The FDIC, when funding the orderly liquidation of an insurance company or its subsidiary, shall notify the relevant state insurance authority promptly of its intention to take a lien on the company's assets.
 
The FDIC may not take such a lien, however, if the state insurance authority informs it that doing so would have a materially adverse effect upon the insurance company's policyholders.
action_date: 2015-11-16
text: 

Policyholder Protection Act of 2015

 
 (Sec. 2) This bill amends the Federal Deposit Insurance Act to declare that any action of the Federal Deposit Insurance Corporation (FDIC) that requires a bank holding company to provide funds or other assets to a subsidiary depository institution is neither effective nor enforceable with respect to a savings and loan holding company that is also an insurance company, an affiliate of an insured depository institution that is an insurance company, or any other company that is an insurance company and directly or indirectly controls an insured depository institution (entities) if:
 
 
such funds or assets are to be provided by the entity, and
 
the relevant state insurance authority determines that such an action would have a materially adverse effect on the entity's financial condition.
 
 
The bill declares that requiring a bank holding company that is an insurance company to serve as a source of financial strength shall be deemed the kind of action of the Board of Governors of the Federal Reserve System that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for specified purposes of the Bank Holding Company Act of 1956. 
 
The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended, with respect to systemic risk determination and the treatment of insurance companies and their subsidiaries, to authorize the FDIC to stand in the place of the appropriate regulatory agency and file a judicial action to place such companies into orderly rehabilitation under state law if the appropriate regulatory agency has not done so.
 
The FDIC, when funding the orderly liquidation of an insurance company or its subsidiary, shall notify the relevant state insurance authority promptly of its intention to take a lien on the company's assets.
 
The FDIC may take such a lien only: 
 
to secure repayment of funds made available to such covered financial company or covered subsidiary; and
 
if it determines that the lien will neither unduly impede nor delay the liquidation or rehabilitation of the insurance company, or the recovery by its policyholders. 
 


Legislative actions:
action_date: 2015-11-17
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2015-11-16
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2015-11-16
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8217)
action_date: 2015-11-16
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8217)
action_date: 2015-11-16
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 1478.
action_date: 2015-11-16
text: Considered under suspension of the rules. (consideration: CR H8217-8219)
action_date: 2015-11-16
text: Mr. Posey moved to suspend the rules and pass the bill, as amended.
action_date: 2015-11-16
text: Placed on the Union Calendar, Calendar No. 260.
action_date: 2015-11-16
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 114-338.
action_date: 2015-11-16
text: Reported (Amended) by the Committee on Financial Services. H. Rept. 114-338.
action_date: 2015-11-04
text: Ordered to be Reported (Amended) by the Yeas and Nays: 57 - 0.
action_date: 2015-11-04
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-11-03
text: Committee Consideration and Mark-up Session Held.
action_date: 2015-03-19
text: Referred to the House Committee on Financial Services.
action_date: 2015-03-19
text: Introduced in House
action_date: 2015-03-19
text: Introduced in House