,,ii  #aacth ,,congress  #ast ,session  
,s4 #acfi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #be1     
#bjac ,mr4 ,brown 7for himself1 ,mr4    
,johanns1 ,mr4 ,kirk1 ,mr4 ,tester1 and 
,mr4 ,toomey7 introduced the following  
bill2 which was read twice and referred 
to the ,committee on ,banking1 ,housing1
 and ,urban ,affairs  ,a ,,bill  ,to    
provide additional flexibility to the   
,board of ,governors of the ,federal    
,reserve ,system to establish capital   
standards that are properly tailored to 
the unique characteristics of the       
business of insurance1 and for other    
purposes4  #a4 ,findings and ,purpose   
7a7 ,findings ,congress finds that--    
7#a7 insurance companies are regulated  
by the ,state insurance authorities of  
the ,states in which the insurance      
companies are domiciled or licensed to  
sell insurance2  7#b7 as exemplified by 
section #e of the ,bank ,holding        
,company ,act of #aief 7#ab ,u4,s4,c4   
#ahdd71 ,congress has long recognized   

and sought to preserve the ,state-based 
insurance regime2  7#c7 ,senate ,report 
#aaa-agf1 relating to the ,restoring    
,american ,financial ,stability ,act of 
#bjaj 7,s4 #cbag71 directed ,federal    
banking agencies to consider the        
existing regulatory requirements1       
accounting treatment1 and unique capital
 structures of insurance companies in   
developing capital requirements for     
insurance entities2 and  7#d7 while     
section #aga of the ,dodd-,frank ,wall  
,street ,reform and ,consumer           
,protection ,act 7#ab ,u4,s4,c4 #ecga7  
directs ,federal banking agencies to    
establish minimum risk-based capital and
 leverage standards on a consolidated   
basis1 ,congress did not intend for     
,federal banking regulators to discard  
the ,state risk-based capital system in 
favor of a banking capital regime4  7b7 
,purpose ,the purpose of this ,act is to
 provide additional flexibility for the 
,board of ,governors of the ,federal    
,reserve ,system to establish capital   

standards that are properly tailored to 
the unique characteristics of the       
business of insurance4  #b4 ,exclusion  
of insurers from bank capital rules     
,section #aga of the ,dodd-,frank ,wall 
,street ,reform and ,consumer           
,protection ,act 7#ab ,u4,s4,c4 #ecga7  
is amended--  7#a7 in subsection 7a71 by
 adding at the end the following3  7#d7 
,business of insurance ,the term        
business of insurance has the same      
meaning as in section #ajjb4  7#e7      
,primarily engaged in the business of   
insurance ,a company is primarily       
engaged in the business of insurance    
if--  7,a7 the annual gross revenues    
derived by the company and all          
subsidiaries of the company from the    
business of insurance represent not less
 than #b_/c of the consolidated annual  
gross revenues of the company2 or  7,b7 
the consolidated assets of the company  
and all subsidiaries of the company that
 relate to the business of insurance    
represent not less than #b_/c of the    

consolidated assets of the company4  2  
and  7#b7 in subsection 7b77#e7--  7,a7 
in subparagraph 7,b71 by striking or2   
7,b7 in subparagraph 7,c71 by striking  
the period at the end and inserting a   
semicolon2 and  7,c7 by adding at the   
end the following3  7,d7 any depository 
institution holding company that--  7i7 
is primarily engaged in the business of 
insurance2 or  7ii7 is an insurance     
underwriting company at the holding     
company level and was in existence on   
,july #ba1 #bjaj2 or  7,e7 any nonbank  
financial company supervised by the     
,board of ,governors that1 together with
 its subsidiaries1 is primarily engaged 
in the business of insurance4  4