State Insurance Regulation Preservation Act

Bill: 115-hr-5059
Sponsor: full_name: Rep. Rothfus, Keith J. [R-PA-12]
Introduced: 2018-02-15
Policy area: Finance and Financial Sector
Subjects: Bank accounts, deposits, capital

Banking and financial institutions regulation

Business records

Corporate finance and management

Government information and archives

Insurance industry and regulation
Latest action: action_date: 2018-09-17
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2018-02-15
action_desc: Introduced in House
text: <p><b>State Insurance Regulation Preservation Act </b></p> <p>This bill amends the Home Owners' Loan Act to limit the applicability of reporting and filing requirements for insurance savings and loan holding companies (ISLHCs). Such holding companies&nbsp;shall also be&nbsp;exempt from requirements relating to examination and supervision by the Federal Reserve Board (FRB) if they meet certain state and federal capital requirements. Certain FRB regulations as applied to ISLHCs must be tailored to the insurance business and applicable state insurance requirements. </p>

tv_txt: I 115th CONGRESS 2d Session H. R. 5059 IN THE HOUSE OF REPRESENTATIVES February 15, 2018 Mr. Rothfus (for himself and Mrs. Beatty ) introduced the following bill; which was referred to the Committee on Financial Services 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.

1. Short title This Act may be cited as the State Insurance Regulation Preservation Act . 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) Insurance savings and loan holding company The term insurance savings and loan holding company means— (i) a top-tier savings and loan holding company that is an insurance underwriting company; (ii) a savings and loan holding company that held 75 percent or more of its total consolidated assets in an insurance underwriting company or insurance underwriting companies, 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 of the National Association of Insurance Commissioners, as applicable; 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. (L) Insurance underwriting company The term insurance underwriting company means an entity that is— (i) engaged in the business of insurance; (ii) subject to regulation by a State insurance regulator; and (iii) covered by a State law that is designed to specifically deal with the rehabilitation, liquidation, or insolvency of an insurance company. (M) Material subsidiary The term material subsidiary — (i) means a subsidiary that has— (I) off-balance sheet activities not less than $5,000,000,000; (II) equity capital not less than 5 percent of the consolidated equity capital of the top-tier holding company; or (III) consolidated operating revenue not less than 5 percent of the consolidated operating revenue of the top-tier holding company; and (ii) does not include a subsidiary that is— (I) a functionally regulated subsidiary; (II) a nonoperating shell holding company; or (III) primarily engaged in— (aa) servicing activities for the holding company or its affiliates, including the activities described in section 225.22(b)(2) of title 12, Code of Federal Regulations; or (bb) internal financial activities, as that term is defined in section 10A(a). . (b) Registration and examination Section 10(b) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b) ) is amended— (1) in paragraph (1), by inserting , and which shall, if applicable, provide for a savings and loan holding company to register as an insurance savings and loan holding company before the period at the end of the first sentence; (2) in paragraph (2)— (A) in subparagraph (A), by striking Each savings and loan holding company and inserting Subject to subparagraph (D), each savings and loan holding company ; (B) in subparagraph (C)— (i) by striking Upon and inserting the following: (i) In general Upon ; and (ii) by adding at the end the following: (ii) Insurance savings and loan companies In the case of an insurance savings and loan holding company— (I) clause (i) shall not apply; and (II) the Board shall submit a request for any information described in clauses (i) through (iii) of subparagraph (B) to the appropriate Federal or State regulatory agencies. ; and (C) by adding at the end the following: (D) Insurance savings and loan holding companies An insurance savings and loan holding company may be required only to file reports related to— (i) the organizational structure of the company and any changes in that structure; (ii) transactions between the company and its affiliates; (iii) balance sheet and income statements of a material subsidiary of the company; and (iv) the capital holdings of the company in relation to applicable minimum capital standards. ; (3) in paragraph (3), by inserting , other than an insurance savings and loan holding company, after company ; and (4) in paragraph (4)— (A) in subparagraph (A), by inserting and subparagraph (D) after 2010 ; and (B) by adding at the end the following: (D) Insurance savings and loan holding companies (i) Tailored examinations and supervision Board examinations of, and supervisory guidance applicable to, an insurance savings and loan holding company shall be based upon a supervisory framework that is— (I) tailored to the risks and activities of the business of insurance; and (II) developed in consultation with State insurance authorities to ensure that such framework does not duplicate or conflict with State insurance requirements. (ii) Exemption for companies that meet applicable capital standards Subject to clause (iii), the Board shall neither examine nor apply supervisory guidance to an insurance savings and loan holding company, or any subsidiary of an insurance savings and loan holding company (other than a material subsidiary), if such company— (I) meets or exceeds applicable State insurance capital standards; and (II) meets or exceeds any minimum capital standards for an insurance savings and loan holding company promulgated by the Board under section 171 of the Financial Stability Act of 2010 ( 12 U.S.C. 5371 ). (iii) Corrective action plan (I) In general If, based upon a capital report submitted pursuant to paragraph (2)(D)(iv), an insurance savings and loan holding company is not in compliance with any applicable minimum capital standards, the Board shall provide a notice of noncompliance to the company and require the company to submit, within 45 days of the receipt of such notice, a plan to restore the capital of the company to a level that meets the applicable minimum standards not later than the later of— (aa) 1 year after the date on which the plan is submitted; or (bb) a date determined by the Board. (II) Failure to submit plan If a company fails to submit a required capital restoration plan, or fails to restore capital to applicable minimum standards within the time period specified in the plan, the Board, following notice and an opportunity for a hearing, may prohibit the application of clause (ii) to the company until the later of— (aa) the date on which the company has met applicable minimum capital standards for 2 calendar years; or (bb) a date determined by the Board. . (c) Administration and enforcement Section 10(g) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(g) ) is amended— (1) in paragraph (1), by inserting In issuing any regulation, order, or supervisory guidance applicable to an insurance savings and loan holding company, including a regulation, order, or guidance related to capital, stress testing, and cybersecurity, the Board shall tailor such regulation, order, or guidance to the risks and activities of the business of insurance and shall consult with State insurance authorities to ensure that the regulation, order, or guidance does not duplicate or conflict with State insurance requirements. after the period at the end; and (2) in paragraph (2), by inserting In the case of an insurance savings and loan holding company, the authority of the Board to conduct investigations shall be limited to the material subsidiaries of the insurance savings and loan holding company. after the period at the end. (d) Intermediate holding companies Section 10A(d) of the Home Owners’ Loan Act ( 12 U.S.C. 1467b(d) ) is amended by adding at the end the following: (3) Insurance savings and loan holding companies If the Board requires a grandfathered unitary savings and loan holding company that is an insurance savings and loan holding company to establish an intermediary holding company to engage in financial activities, the intermediary holding company shall be treated as an insurance savings and loan holding company for purposes of supervision and regulation by the Board. . (e) Emergency supervisory authority Section 10 of the Home Owners’ Loan Act ( 12 U.S.C. 1467a ) is amended by adding the following new subsection at the end thereof: (u) Emergency supervisory authority The Board, by order, may suspend the application of paragraphs (2)(C)(ii), (2)(D), and (4)(D) of subsection (c) and the final sentences of paragraphs (1) and (2) of subsection (g) to an insurance savings and loan holding company and apply subsection (b)(3) to an insurance savings and loan holding company if the Board, after consultation with the State insurance authority for the insurance savings and loan holding company, reasonably determines that the operations and activities of the insurance savings and loan holding company pose a serious and imminent risk to the financial safety and soundness or stability of the insurance savings and loan holding company’s subsidiary saving association. . 3. Assessments and fees for insurance savings and loan holding companies Section 11 of the Federal Reserve Act ( 12 U.S.C. 248 ) is amended, in the second subsection (s) (relating to assessments), by adding at the end the following: (3) Excluded assets With respect to an insurance savings and loan holding company, as defined in section 10 of the Home Owners’ Loan Act ( 12 U.S.C. 1467a ), the total consolidated assets described in paragraph (2)(B) shall not include any asset of an insurance company. .

tv_txt: I 115th CONGRESS 2d Session H. R. 5059 IN THE HOUSE OF REPRESENTATIVES AN ACT 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.

1. Short title This Act may be cited as the State Insurance Regulation Preservation Act . 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 inserting at the end the following: (K) Domicile The term domicile means the State in which an insurance underwriting company or the holding company for such 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 an insurance underwriting company (or insurance underwriting companies), 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 insurer’s domicile. (O) State insurance authority The term State insurance authority means the State insurance authority of the State in which an insurance underwriting company or holding company for such 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 inserting at the end the following new sentence: 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 new subparagraph: (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 such company with other Federal authorities and the State insurance authority for such company before requesting such reports or information from the insurance savings and loan holding company or any insurance underwriting company that is a subsidiary of such 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 new subparagraph: (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 such company and any insurance underwriting company that is a subsidiary of such 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 new clause: (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 such company and any insurance underwriting company that is a subsidiary of such 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 by 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 new paragraph: (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 such companies or insurance underwriting companies that are subsidiaries of such 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 such letters and guidance are not inconsistent with the supervisory framework required by this paragraph. . 3. Assessments and fees for insurance savings and loan holding companies Section 11(s) of the Federal Reserve Act ( 12 U.S.C. 248(s) ), which relates to assessments and fees, is amended by inserting at the end the following new paragraph: (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)(L) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(a)(1)(L) ), shall not include assets attributable to the business of insurance conducted by such company or any affiliate of such company, other than assets associated with insurance for credit risk. . 4. Implementation (a) Implementation of supervisory framework The Board shall establish the supervisory framework required by section 10(b)(7) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b)(7) ), as added by this Act, within 24 months of the date of enactment of this Act. (b) Review of supervisory guidance The Board shall complete the review of supervisory policy letters and policy guidance required by section 10(b)(7) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b)(7) ), as added by this Act, within 30 months of the date of enactment of this Act. (c) Report to congress The Board, no later than 36 months after the date of enactment of this Act, shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the implementation of this Act. (d) Board defined As used in this section, the term Board means the Board of Governors of the Federal Reserve System. 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 under section 10(a)(1) of the Home Owners’ Loan Act) that is provided by a Federal law other than the Home Owners’ Loan Act. 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. 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 such terms are defined, respectively, under section 10(a)(1) of the Home Owners’ Loan Act).

Passed the House of Representatives September 12, 2018. Karen L. Haas, Clerk.

tv_txt: IIB 115th CONGRESS 2d Session H. R. 5059 IN THE SENATE OF THE UNITED STATES September 17, 2018 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT 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.

1. Short title This Act may be cited as the State Insurance Regulation Preservation Act . 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 inserting at the end the following: (K) Domicile The term domicile means the State in which an insurance underwriting company or the holding company for such 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 an insurance underwriting company (or insurance underwriting companies), 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 insurer’s domicile. (O) State insurance authority The term State insurance authority means the State insurance authority of the State in which an insurance underwriting company or holding company for such 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 inserting at the end the following new sentence: 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 new subparagraph: (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 such company with other Federal authorities and the State insurance authority for such company before requesting such reports or information from the insurance savings and loan holding company or any insurance underwriting company that is a subsidiary of such 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 new subparagraph: (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 such company and any insurance underwriting company that is a subsidiary of such 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 new clause: (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 such company and any insurance underwriting company that is a subsidiary of such 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 by 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 new paragraph: (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 such companies or insurance underwriting companies that are subsidiaries of such 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 such letters and guidance are not inconsistent with the supervisory framework required by this paragraph. . 3. Assessments and fees for insurance savings and loan holding companies Section 11(s) of the Federal Reserve Act ( 12 U.S.C. 248(s) ), which relates to assessments and fees, is amended by inserting at the end the following new paragraph: (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)(L) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(a)(1)(L) ), shall not include assets attributable to the business of insurance conducted by such company or any affiliate of such company, other than assets associated with insurance for credit risk. . 4. Implementation (a) Implementation of supervisory framework The Board shall establish the supervisory framework required by section 10(b)(7) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b)(7) ), as added by this Act, within 24 months of the date of enactment of this Act. (b) Review of supervisory guidance The Board shall complete the review of supervisory policy letters and policy guidance required by section 10(b)(7) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b)(7) ), as added by this Act, within 30 months of the date of enactment of this Act. (c) Report to congress The Board, no later than 36 months after the date of enactment of this Act, shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the implementation of this Act. (d) Board defined As used in this section, the term Board means the Board of Governors of the Federal Reserve System. 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 under section 10(a)(1) of the Home Owners’ Loan Act) that is provided by a Federal law other than the Home Owners’ Loan Act. 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. 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 such terms are defined, respectively, under section 10(a)(1) of the Home Owners’ Loan Act).

Passed the House of Representatives September 12, 2018. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 728 115th CONGRESS 2d Session H. R. 5059 [Report No. 115–937] IN THE HOUSE OF REPRESENTATIVES February 15, 2018 Mr. Rothfus (for himself and Mrs. Beatty ) introduced the following bill; which was referred to the Committee on Financial Services September 12, 2018 Additional sponsors: Mr. Luetkemeyer , Mr. Gonzalez of Texas , and Mr. Budd September 12, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on February 15, 2018 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.

1. Short title This Act may be cited as the State Insurance Regulation Preservation Act . 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 inserting at the end the following: (K) Business of insurance The term business of insurance means any activity that is regulated in accordance with the relevant State insurance law, including the writing of insurance and the reinsuring of risks. (L) 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 an insurance underwriting company (or insurance underwriting companies), 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. (M) Insurance underwriting company The term insurance underwriting company means an entity that is subject to regulation by a State insurance authority. (N) State insurance authority The term State insurance authority means the chief insurance regulatory authority of a State. (O) 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 inserting at the end the following new sentence: 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 new subparagraph: (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 with other Federal or State authorities from such other authorities before requesting such reports or information from insurance savings and loan holding companies. . (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 new subparagraph: (B) Insurance savings and loan holding companies The Board, to the fullest extent possible, shall align any prescribed recordkeeping requirements for insurance savings and loan holding companies with the recordkeeping requirements imposed by State insurance authorities. . (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 new clause: (iii) Insurance savings and loan holding companies (I) Coordination The Board, to the fullest extent possible, shall conduct examinations of insurance savings and loan holding companies in conjunction with other State and Federal authorities in order to minimize the potential for duplication and conflict between the inspections 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 by 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 new paragraph: (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 State insurance authorities. (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 such letters and guidance are not inconsistent with the supervisory framework required by this paragraph. . 3. Assessments and fees for insurance savings and loan holding companies Section 11(s) of the Federal Reserve Act ( 12 U.S.C. 248(s) ), which relates to assessments and fees, is amended by inserting at the end the following new paragraph: (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)(L) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(a)(1)(L) ), shall not include assets attributable to the business of insurance conducted by such company or any affiliate of such company, other than assets associated with insurance for credit risk. . 4. Implementation (a) Implementation of supervisory framework The Board shall establish the supervisory framework required by section 10(b)(7) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b)(7) ), as added by this Act, within 24 months of the date of enactment of this Act. (b) Review of supervisory guidance The Board shall complete the review of supervisory policy letters and policy guidance required by section 10(b)(7) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(b)(7) ), as added by this Act, within 30 months of the date of enactment of this Act. (c) Report to congress The Board, no later than 36 months after the date of enactment of this Act, shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the implementation of this Act. (d) Board defined As used in this section, the term Board means the Board of Governors of the Federal Reserve System. 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 under section 10(a)(1) of the Home Owners’ Loan Act) that is provided by a Federal law other than this Act.

September 12, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed