,i #aad? ,,congress #a/ ,session ,h4 ,r4 #bada ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,april #cj1 #bjae ,mr4 ,duffy 7= himself1 ,mr4 ,neugebau]1 ,mr4 ,we/morel&1 ,mr4 ,g>rett1 & ,mr4 ,huiz5ga ( ,mi*igan7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to require consultation ) ,congress1 insur]s1 & consum]s ) respect to dome/ic insurance & int]national insurance /&>ds1 regulations1 or frameworks1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,int]national ,insurance ,/&>ds ,transp>5cy & ,policyhold] ,protection ,act ( #bjae4 #b4 ,consultation conc]n+ negotiations ) respect to int]national insurance regulatory frameworks 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! ,/ate-bas$ sy/em = insurance regulation 9 ! ,unit$ ,/ates has s]v$ ,am]ican consum]s well = m ?an #aej ye>s4 7#b7 ,protect+ policyhold]s by gu>antee+ an insur]'s ability to pay claims has be5 ! hallm>k ( ! successful ,u4,s4 sy/em & %\ld be ! p>am\nt objective ( dome/ic prud5tial regulation & em]g+ int]national /&>ds4 7#c7 ,! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7,public ,law #aaa-bjc7 reaffirm$ ! ,/ate-bas$ insurance regulatory sy/em1 :ile giv+ ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em au?ority to regulate c]ta9 non-bank entities on a consolidat$ basis1 includ+ insur]s t h be5 designat$ sy/emically important f9ancial in/itutions or t include an insur$ depository in/itution & are regulat$ by ! ,/ates at ! insurance entity level4 7#d7 ,unit$ ,/ates regulators p>ticipat+ 9 discussions or negotiations reg>d+ int]national insurance regulatory frameworks %\ld support /&>ds design$ solely = ! protection ( policyhold]s4 7#e7 ,! ,f$]al ,insurance ,(fice %\ld seek advice & recomm5dations f a div]se gr\p ( outside exp]ts 9 p]=m+ ! duties & au?orities ( ! ,(fice to ensure policy hold]s are protect$4 7b7 ,negotiat+ objectives = int]national insurance regulatory frameworks ,! negotiat+ objectives ( ! ,unit$ ,/ates reg>d+ int]national insurance regulatory frameworks are z foll[s3 7#a7 ,to seek /&>ds1 requirem5ts1 & rules focus$ solely on protection ( policy hold]s1 z reflect$ 9 ! ,unit$ ,/ates solv5cy regime4 7#b7 ,to promote a pr9ciples-bas$ approa* to insurance sup]vision1 9 :i* capital adequacy is assess$ us+ risk-bas$ capital requirem5ts comb9$ ) qualitative risk assessm5t & managem5t tools on a legal entity basis1 r ?an a quantitative global capital /&>d = insurance gr\ps4 7#c7 ,to seek ! mo/ effici5t & lea/ disruptive approa*es to enhanc+ regulatory assessm5t ( ! capital adequacy ( insurance gr\ps1 includ+ tools t are already 9 place1 su* z sup]visory colleges1 z well z ! evaluation ( ! capitalization ( an insurance gr\p us+ ! exi/+ int]nal model ( ! gr\p1 :]e appropriate1 :i* captures ! risks associat$ ) ea* unique l9e ( bus9ess & geographic mix ( ! gr\p4 7#d7 ,to negotiate an int]national insurance regulatory framework t recognizes ,unit$ ,/ates prud5tial measures z equival5t to =eign measures4 7c7 ,prohibitions & focus on policy hold] protection ,) respect to negotiations relat$ to any int]national insurance regulatory framework3 7#a7 ,inappropriate bank capital /&>ds ,unit$ ,/ates repres5tatives %all n agree to1 accept1 or e/abli%1 & %all use _! voice & vote to oppose1 any int]national /&>d t applies to-- 7,a7 insur]s1 capital /&>ds1 & rules design$ = banks2 or 7,b7 any insur] t has n be5 designat$ a sy/emically important f9ancial in/itution "u ,unit$ ,/ates law or a global sy/emically important insur] by ! ,f9ancial ,/ability ,ov]sight ,c\ncil1 capital /&>ds & rules design$ = sy/emically important bank or non-bank f9ancial in/itutions4 7#b7 ,focus on policyhold] protection 7,a7 ,9 g5]al ,unit$ ,/ates repres5tatives %all n agree to1 accept1 or e/abli%1 & %all use _! voice & vote to oppose1 any capital /&>d or rule applicable to ,unit$ ,/ates insurance entities or gr\ps unless t /&>d is design$ solely to help ensure t suffici5t funds are available to pay claims to an insur]'s policyhold]s 9 ! ev5t ( ! liquidation ( t entity4 7,b7 ,enhanc$ capital /&>ds ,! limitation "u subp>agraph 7,a7 does n apply to enhanc$ capital /&>ds applicable to insurance entities or gr\ps designat$ "u section #aac ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7#ab ,u4,s4,c4 #ecbc74 7d7 ,notice & consultation 7#a7 ,9 g5]al ,) respect to any int]national insurance regulatory framework1 ! ,presid5t %all-- 7,a7 n less ?an #ij days be=e ! ,unit$ ,/ates int5ds to p>ticipate 9 or ent] into negotiations ) respect to su* a regulatory framework1 provide to ! cov]$ congressional committees writt5 notice ( ! int5tion ( ! ,unit$ ,/ates to p>ticipate 9 or ent] into su* negotiations & an outl9e ( ! objectives ( su* negotiations1 includ+ :e!r & h[ su* objectives a*ieve ! objectives set =? 9 subsection 7b7 & are consi/5t ) ! prohibitions "u subsection 7c7 & ) exi/+ ,f$]al & ,/ate laws or regulations or policy relat$ to prud5tial regulation ( insurance2 7,b7 dur+ ! negotiations ( su* a regulatory framework1 includ+ prior to significant decisions po9ts 9 ! negotiations & prior to developm5t ( int]im drafts1 & be=e agree+ to1 accept+1 or e/abli%+ su* framework1 consult ) ! cov]$ congressional committees & ! ,f$]al ,advisory ,committee on ,insurance e/abli%$ "u section #cac7;f7 ( title #ca1 ,unit$ ,/ates ,code1 includ+ ) respect to :e!r & h[ su* negotiations or any int]national insurance regulatory framework a*ieves ! objectives set =? 9 subsection 7b7 & is consi/5t ) ! prohibitions "u subsection 7c7 & ) exi/+ ,f$]al & ,/ate laws or regulations or policy relat$ to prud5tial regulation ( insurance2 7,c7 9 ! c\rse ( negotiat+ su* a regulatory framework1 provide memb]s & appropriate /aff ( ! cov]$ congressional committees access to p]t95t docum5ts relat+ to ! negotiations ( su* framework2 7,d7 n less ?an #fj days be=e ! date on :i* ! ,unit$ ,/ates int5ds to agree to1 accept1 or e/abli% su* a framework1 ! ,presid5t %all-- 7i7 notify ! cov]$ congressional committees ( ! int5tion ( ! ,unit$ ,/ates to agree to1 accept1 or e/abli% su* a framework by provid+ a description 9 en\gh detail = ! cov]$ congressional committees to comm5t2 7ii7 notify ! ,f$]al ,advisory ,committee on ,insurance ( ! int5tion ( ! ,unit$ ,/ates to agree to1 accept1 or e/abli% su* framework by provid+ a description 9 en\gh detail = ! memb]s to comm5t2 & 7iii7 publi% notice ( su* int5tion by provid+ a description 9 en\gh detail 9 ! ,f$]al ,regi/] to meet ! requirem5ts = public consultation "u subsection 7h72 & 7,e7 n less ?an #ae days be=e ! ,unit$ ,/ates agrees to1 accepts1 or e/abli%es su* a regulatory framework1 ! ,presid5t %all submit to ! cov]$ congressional committees & ! ,f$]al ,advisory ,committee on ,insurance ! f9al text ( su* framework & a description ( h[ ! propos$ framework a*ieves ! objectives set =? 9 subsection 7b7 & is consi/5t ) ! prohibitions "u subsection 7c71 & h[ su* propos$ framework diff]s f exi/+ ,f$]al & ,/ate laws or regulations or policy relat$ to prud5tial regulation ( insurance4 7#b7 ,availability ( in=mation to ,memb]s ( ,congress ,! cov]$ congressional committees %all make available to all ,memb]s ( ,congress ! in=mation requir$ to be provid$ "u p>agraph 7#a77;,a74 7e7 ,coord9ation ) ! ,national ,association ( ,insurance ,commission]s ,9 develop+ objectives pursuant to subsection 7d77#a77;,a7 = an int]national insurance regulatory framework1 & ?r\gh\t ! negotiations ( su* framework1 ! ,presid5t %all closely consult & coord9ate ) ! ,national ,association ( ,insurance ,commission]s4 7f7 ,gov]nm5t ,acc\ntability ,(fice assessm5ts 7#a7 ,notice & submission ,n lat] ?an #fj days be=e ! date on :i* ! ,unit$ ,/ates int5ds to agree to1 accept1 or e/abli% an int]national insurance regulatory framework1 ! ,presid5t %all provide to ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates a description ( su* framework 9 en\gh detail to all[ ! ,comptroll] ,g5]al to conduct ! assessm5t requir$ "u p>agraph 7#b74 7#b7 ,assessm5t ,n lat] ?an #fj days aft] ! date on :i* ,presid5t provides ! in=mation describ$ 9 p>agraph 7#a7 ) respect to an int]national insurance agreem5t1 ! ,comptroll] ,g5]al %all submit to ! ,presid5t & ! cov]$ congressional committees an assessm5t ( ! economic effects ( su* agreem5t on ! ,unit$ ,/ates insurance indu/ry1 consum]s ( insurance1 & ! ,unit$ ,/ates economy4 7g7 ,negotiations 9 progress on date ( enactm5t 7#a7 ,notice ,n lat] ?an #ae days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,presid5t %all provide to ! cov]$ congressional committees & ! ,f$]al ,advisory ,committee on ,insurance ! writt5 notice describ$ 9 subsection 7d77#a7 ) respect to negotiations relat+ to an int]national insurance regulatory framework t 7 9 progress on su* date4 7#b7 ,gov]nm5t acc\ntability assessm5t 7,a7 ,notice & submission ,n lat] ?an #fj days aft] ! date ( ! enactm5t ( ?is ,act1 ! ,presid5t %all provide to ! ,comptroll] ,g5]al ( ! ,unit$ ,/ates a description ( ea* int]national insurance regulatory framework = :i* negotiations 7 9 progress on su* date 9 en\gh detail to all[ ! ,comptroll] ,g5]al to conduct ! assessm5t requir$ "u subp>agraph 7,b74 7,b7 ,assessm5t ,n lat] ?an #fj days aft] ! date on :i* ! ,presid5t provides ! in=mation describ$ 9 subp>agraph 7,a7 ) respect to an int]national insurance regulatory framework1 ! ,comptroll] ,g5]al %all submit to ! ,presid5t & ! cov]$ congressional committees an assessm5t ( ! economic effects ( su* framework on ! ,unit$ ,/ates insurance indu/ry1 consum]s ( insurance1 & ! ,unit$ ,/ates economy4 7h7 ,public consultation 7#a7 ,notice ( negotiations ,n lat] ?an #ij days be=e ! ,unit$ ,/ates int5ds to p>ticipate 9 or ent] into negotiations to agree to1 accept1 or e/abli% an int]national insurance regulatory framework ) an int]national /&>d-sett+ organization or a =eign gov]nm5t1 au?ority1 or regulatory entity1 ! ,presid5t %all publi% 9 ! ,f$]al ,regi/] & make available = public comm5t writt5 notice ( ! int5tion ( ! ,unit$ ,/ates to p>ticipate 9 or ent] into su* negotiations & an outl9e ( ! objectives ( su* negotiations1 includ+ :e!r & h[ su* objectives a*ieve ! objectives set =? 9 subsection 7b7 & are consi/5t ) ! prohibitions "u subsection 7c7 & ) exi/+ ,f$]al & ,/ate laws or regulations or policy relat$ to prud5tial regulation ( insurance4 7#b7 ,description ( framework ,n lat] ?an #fj days be=e ! date on :i* ! ,unit$ ,/ates agrees to1 accepts1 or e/abli%es an int]national insurance regulatory framework ) an int]national /&>d-sett+ organization or a =eign gov]nm5t1 au?ority1 or regulatory entity1 ! ,presid5t %all publi% 9 ! ,f$]al ,regi/] a description ( ! framework 9 en\gh detail to make su* framework available = public comm5t4 7#c7 ,framework agreem5t ,n lat] ?an #ae days be=e agree+ to1 accept+1 or e/abli%+ an int]national insurance regulatory framework1 publi% 9 ! ,f$]al ,regi/] ! f9al text ( ! framework & a description ( h[ ! framework a*ieves ! objectives set =? 9 subsection 7b7 & is consi/5t ) ! prohibitions "u subsection & h[ su* propos$ framework diff]s f exi/+ ,f$]al & ,/ate laws or regulations or policy relat$ to prud5tial regulation ( insurance4 7i7 ,sav+s ,provisions ,no?+ 9 ?is section %all-- 7#a7 preempt-- 7,a7 any ,/ate insurance measure t gov]ns any insur]'s rates1 premiums1 und]writ+1 or sales practices2 7,b7 any ,/ate cov]age requirem5ts = insurance2 7,c7 ! application ( ! antitru/ laws ( any ,/ate to ! bus9ess ( insurance2 or 7,d7 any ,/ate insurance measure gov]n+ ! capital or solv5cy ( an insur]1 except to ! ext5t t su* ,/ate insurance measure results 9 less favorable treatm5t ( a non-,unit$ ,/ates insur] ?an a ,unit$ ,/ates insur]2 7#b7 be con/ru$ to alt]1 am5d1 or limit any provision ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha et seq472 or 7#c7 affect ! preemption ( any ,/ate insurance measure o!rwise inconsi/5t ) & preempt$ by ,f$]al law4 7j7 ,exclusion ,! requirem5ts ( ?is section %all n apply to any cov]$ agreem5t1 z su* t]m is def9$ 9 section #cac7r7 ( title #ca1 ,unit$ ,/ates ,code 7z add$ by ! am5dm5t made by section #ejb7;a77#c7 ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act 7,public ,law #aaa-bjc1 #abd ,/at4 #aehg774 7k7 ,def9itions ,9 ?is section3 7#a7 ,cov]$ congressional committees ,! t]m cov]$ congressional committees means ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives & ! ,committee on ,bank+1 ,h\s+ & ,urban ,affairs ( ! ,s5ate4 7#b7 ,int]national insurance regulatory framework ,! t]m int]national insurance regulatory framework means any int]national sup]visory /&>ds develop$ by an int]national /&>ds sett+ organization 9 :i* ! ,unit$ ,/ates p>ticipates1 includ+ ! ,common ,framework = ! ,sup]vision ( ,int]nationally ,active ,insurance ,gr\ps1 t provides = gr\p-wide sup]vision ( int]nationally active insurance gr\ps & includes an insurance capital /&>d4