Insurance Capital Standards Clarification Act of 2014
PL 113-279 (S.2270), enacted 12/18/2014

[113th Congress Public Law 279]
[From the U.S. Government Publishing Office]



[[Page 128 STAT. 3017]]

Public Law 113-279
113th Congress

                                 An Act


 
     To clarify the application of certain leverage and risk-based 
   requirements under the Dodd-Frank Wall Street Reform and Consumer 
          Protection Act. <<NOTE: Dec. 18, 2014 -  [S. 2270]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Insurance 
Capital Standards Clarification Act of 2014.>> 
SECTION 1. <<NOTE: 12 USC 5301 note.>> SHORT TITLE.

    This Act may be cited as the ``Insurance Capital Standards 
Clarification Act of 2014''.
SEC. 2. CLARIFICATION OF APPLICATION OF LEVERAGE AND RISK-BASED 
                    CAPITAL REQUIREMENTS.

    Section 171 of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5371) is amended--
            (1) <<NOTE: Definitions.>> in subsection (a), by adding at 
        the end the following:
            ``(4) Business of insurance.--The term `business of 
        insurance' has the same meaning as in section 1002(3).
            ``(5) Person regulated by a state insurance regulator.--The 
        term `person regulated by a State insurance regulator' has the 
        same meaning as in section 1002(22).
            ``(6) Regulated foreign subsidiary and regulated foreign 
        affiliate.--The terms `regulated foreign subsidiary' and 
        `regulated foreign affiliate' mean a person engaged in the 
        business of insurance in a foreign country that is regulated by 
        a foreign insurance regulatory authority that is a member of the 
        International Association of Insurance Supervisors or other 
        comparable foreign insurance regulatory authority as determined 
        by the Board of Governors following consultation with the State 
        insurance regulators, including the lead State insurance 
        commissioner (or similar State official) of the insurance 
        holding company system as determined by the procedures within 
        the Financial Analysis Handbook adopted by the National 
        Association of Insurance Commissioners, where the person, or its 
        principal United States insurance affiliate, has its principal 
        place of business or is domiciled, but only to the extent that--
                    ``(A) such person acts in its capacity as a 
                regulated insurance entity; and
                    ``(B) the Board of Governors does not determine that 
                the capital requirements in a specific foreign 
                jurisdiction are inadequate.
            ``(7) Capacity as a regulated insurance entity.--The term 
        `capacity as a regulated insurance entity'--

[[Page 128 STAT. 3018]]

                    ``(A) includes any action or activity undertaken by 
                a person regulated by a State insurance regulator or a 
                regulated foreign subsidiary or regulated foreign 
                affiliate of such person, as those actions relate to the 
                provision of insurance, or other activities necessary to 
                engage in the business of insurance; and
                    ``(B) does not include any action or activity, 
                including any financial activity, that is not regulated 
                by a State insurance regulator or a foreign agency or 
                authority and subject to State insurance capital 
                requirements or, in the case of a regulated foreign 
                subsidiary or regulated foreign affiliate, capital 
                requirements imposed by a foreign insurance regulatory 
                authority.''; and
            (2) by adding at the end the following new subsection:

    ``(c) Clarification.--
            ``(1) In general.--In establishing the minimum leverage 
        capital requirements and minimum risk-based capital requirements 
        on a consolidated basis for a depository institution holding 
        company or a nonbank financial company supervised by the Board 
        of Governors as required under paragraphs (1) and (2) of 
        subsection (b), the appropriate Federal banking agencies shall 
        not be required to include, for any purpose of this section 
        (including in any determination of consolidation), a person 
        regulated by a State insurance regulator or a regulated foreign 
        subsidiary or a regulated foreign affiliate of such person 
        engaged in the business of insurance, to the extent that such 
        person acts in its capacity as a regulated insurance entity.
            ``(2) Rule of construction on board's authority.--This 
        subsection shall not be construed to prohibit, modify, limit, or 
        otherwise supersede any other provision of Federal law that 
        provides the Board of Governors authority to issue regulations 
        and orders relating to capital requirements for depository 
        institution holding companies or nonbank financial companies 
        supervised by the Board of Governors.
            ``(3) Rule of construction on accounting principles.--
                    ``(A) In general.--A depository institution holding 
                company or nonbank financial company supervised by the 
                Board of Governors of the Federal Reserve that is also a 
                person regulated by a State insurance regulator that is 
                engaged in the business of insurance that files 
                financial statements with a State insurance regulator or 
                the National Association of Insurance Commissioners 
                utilizing only Statutory Accounting Principles in 
                accordance with State law, shall not be required by the 
                Board under the authority of this section or the 
                authority of the Home Owners' Loan Act to prepare such 
                financial statements in accordance with Generally 
                Accepted Accounting Principles.
                    ``(B) Preservation of authority.--Nothing in 
                subparagraph (A) shall limit the authority of the Board 
                under any other applicable provision of law to conduct 
                any regulatory or supervisory activity of a depository 
                institution holding company or non-bank financial 
                company supervised by the Board of Governors, including 
                the collection or reporting of any information on an 
                entity or group-wide basis. Nothing in this paragraph 
                shall excuse the Board from its obligations to comply 
                with section 161(a)

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                of the Dodd-Frank Wall Street Reform and Consumer 
                Protection Act (12 U.S.C. 5361(a)) and section 10(b)(2) 
                of the Home Owners' Loan Act (12 U.S.C. 1467a(b)(2)), as 
                appropriate.''.

    Approved December 18, 2014.

LEGISLATIVE HISTORY--S. 2270:
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CONGRESSIONAL RECORD, Vol. 160 (2014):
            June 3, considered and passed Senate.
            Dec. 10, considered and passed House.

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