,i #aacth ,,congress #ast ,session ,h4 ,r4 #badj ,,in ,,the ,,house ,,of ,,representatives ,may #bc1 #bjac ,mr4 ,gary ,g4 ,miller of ,california 7for himself and ,mrs4 ,mc,carthy of ,new ,york7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to permit insurance companies that are depository holding companies1 or are subsidiaries of depository holding companies1 to comply with the accounting and capital requirements applicable to the insurance company under ,state law1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,insurance ,capital and ,accounting ,standards ,act of #bjac4 #b4 ,leverage and risk-based capital requirements ,subsection 7b7 of section #aga of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga7;b77 is amended-- 7#a7 by redesignating paragraphs 7#c71 7#d71 7#e71 7#f71 and 7#g7 as paragraphs 7#d71 7#e71 7#f71 7#g71 and 7#h71 respectively2 and 7#b7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,insurance companies 7,a7 ,in general ,the minimum leverage capital requirements and the minimum risk-based capital requirements established under paragraphs 7#a7 and 7#b7 shall1 for depository institution holding companies and nonbank financial companies supervised by the ,board of ,governors that is an insurance company1 or that has one or more subsidiaries that are insurance companies-- 7i7 with respect to the insurance company1 adhere to the regulatory accounting practices and procedures applicable to1 and the capital structure of1 such companies2 and 7ii7 with respect to the insurance company1 utilize the governing ,state law capital requirements for insurance companies4 7,b7 ,compliance with capital requirements under ,state law 7i7 ,presumption ,any insurance company1 insurance affiliate1 or insurance subsidiary in compliance with applicable risk-based capital standards established under ,state law shall be presumed to satisfy any minimum capital requirements of this section4 7ii7 ,determination of ,board with respect to presumption ,the ,board of ,governors may1 on a case-by-case basis on the record1 determine that the presumption in clause 7i7 should not apply1 provided that the ,board first establishes through rulemaking the general procedures and standards to be utilized for such proceedings4 7iii7 ,effect of determination ,where the ,board of ,governors makes a determination under clause 7ii7 that the presumption should not apply to a company1 the requirements of subparagraphs 7,a71 7,c71 and 7,d7 remain applicable in establishing capital rules for such company4 7,c7 ,analysis of leverage and risk based capital requirements ,no requirements under paragraph 7#a7 and 7#b7 for a company described under subparagraph 7,a7 shall apply unless the ,board-- 7i7 carries out a cost-benefit analysis of the application of those requirements specific to a company described under subparagraph 7,a71 including soliciting and reviewing public comment of the analysis prior to any final rulemaking1 and the ,board of ,governors determines that the benefits of applying the requirements outweigh the cost2 and 7ii7 carries out a quantitative impact study of the application of those requirements specific to a company described under subparagraph 7,a71 including soliciting and reviewing public comment of the study prior to any final rulemaking1 and only apply the requirements if the ,board of ,governors determines that the study shows the requirements are appropriate4 7,d7 ,rulemaking requirements ,any rulemaking implementing paragraphs 7#a7 and 7#b7 shall separately incorporate and reflect the requirements provided for under subparagraphs 7,a71 7,b71 and 7,c74 4 #c4 ,accounting standards applicable to insurance companies ,section #aae of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecbe7 is amended by adding at the end the following3 7h7 ,accounting standards applicable to insurance companies ,with respect to a nonbank financial company supervised by the ,board of ,governors that is an insurance company1 the ,board of ,governors may not require the insurance company to comply with accounting standards1 including generally accepted accounting principles1 that are different than those regulatory accounting standards applicable to the insurance company under applicable ,state law4 4 #d4 ,solvency1 capital1 and accounting requirements for insurance-based savings and loan holding companies ,section #aj7;g7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7g77 is amended by adding at the end the following3 7#f7 ,solvency1 capital1 and accounting requirements for insurance-based savings and loan holding companies 7,a7 ,in general ,notwithstanding any other provision of this section1 in establishing capital standards required for a savings and loan holding company that is an insurance company or that has one or more subsidiaries that are insurance companies1 the ,board shall-- 7i7 with respect to the insurance company1 adhere to the regulatory accounting practices and procedures applicable to1 and the capital structure of1 such company2 7ii7 with respect to the insurance company1 utilize the governing ,state law capital requirements for insurers2 and 7iii7 not require any insurance company to comply with accounting standards1 including generally accepted accounting principles1 that are different than those accounting standards the company is required to comply with by the company's ,state regulator4 7,b7 ,compliance with capital requirements under ,state law 7i7 ,presumption ,any insurance company1 insurance affiliate1 or insurance subsidiary in compliance with applicable risk-based capital standards established under ,state law shall be presumed to satisfy any capital requirements of this ,act4 7ii7 ,determination of ,board with respect to presumption ,the ,board may1 on a case-by-case basis on the record1 determine that the presumption in clause 7i7 should not apply1 provided that the ,board first establishes through rulemaking the general procedures and standards to be utilized for such proceedings4 7iii7 ,effect of determination ,where the ,board makes a determination under clause 7ii7 that the presumption should not apply to a company1 the requirements of subparagraphs 7,a71 7,c71 and 7,d7 remain applicable in establishing capital rules for such company4 7,c7 ,analysis of capital requirements ,no capital requirements under this ,act for a company described under subparagraph 7,a7 shall apply unless the ,board-- 7i7 carries out a cost-benefit analysis of the application of those requirements specific to a company described under subparagraph 7,a71 including soliciting and reviewing public comment of the analysis prior to any final rulemaking1 and the ,board determines that the benefits of applying the requirements outweigh the cost2 and 7ii7 carries out a quantitative impact study of the application of those requirements specific to a company described under subparagraph 7,a71 including soliciting and reviewing public comment of the study prior to any final rulemaking1 and only apply the requirements if the ,board determines that the study shows the requirements are appropriate4 7,d7 ,rulemaking requirements ,any rulemaking setting capital rules for companies described in subparagraph 7,a7 shall separately incorporate and reflect the requirements provided for under subparagraphs 7,a71 7,b71 and 7,c74 4 #e4 ,source of strength ,section #ch;,a of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahcao-#a7 is amended-- 7#a7 by redesignating subsections 7c71 7d71 and 7e7 as subsections 7d71 7e71 and 7f71 respectively2 and 7#b7 by inserting after subsection 7b7 the following3 7c7 ,insurance regulator consent ,in cases involving a depository institution holding company that is an insurance company or that has one or more subsidiaries that are insurance companies1 before the appropriate ,federal banking agency may require such insurance company to be used directly or indirectly as a source of financial strength pursuant to subsection 7a7 or 7b71 the appropriate ,federal banking agency shall obtain-- 7#a7 the consent of the insurance commissioner 7or similar official charged with the principal responsibility of supervising the business of insurance within each ,state1 territory1 or insular possession of the ,united ,states7 of the insurance company's domiciliary ,state2 and 7#b7 a certification from such commissioner that the commissioner considered the safety and soundness of the insurance company or subsidiary insurance company prior to providing such consent4 4