,,ii  #aadth ,,congress  #b;d ,session  
,h4 ,r4 #eadc  ,,in ,,the ,,senate ,,of 
,,the ,,united ,,states  ,december #h1  
#bjaf,received  ,,an ,,act  ,to provide 
greater transparency and congressional  
oversight of international insurance    
standards setting processes1 and for    
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,transparent   
,insurance ,standards ,act of #bjaf4    
#b4 ,congressional findings ,the        
,congress finds the following3  7#a7    
,the ,state-based system for insurance  
regulation in the ,united ,states has   
served ,american consumers well for more
 than #aej years and has fostered an    
open and competitive marketplace with a 
diversity of insurance products to the  
benefit of policyholders and consumers4 
7#b7 ,protecting policyholders by       
regulating to ensure an insurer's       
ability to pay claims has been the      
hallmark of the successful ,united      
,states system and should be the        
paramount objective of domestic         

prudential regulation and emerging      
international standards4  7#c7 ,united  
,states officials participating in      
discussions or negotiations regarding   
international insurance standards shall 
support standards designed for the      
protection of policyholders4  7#d7 ,the 
,secretary of the ,treasury shall seek  
advice and recommendations from a       
diverse group of outside experts in     
performing the duties and authorities of
 the ,secretary to coordinate ,federal  
efforts and develop ,federal policy on  
prudential aspects of international     
insurance matters4  7#e7 ,the draft of  
the ,higher ,loss ,absorbency capital   
standard adopted in #bjae by the        
,international ,association of          
,insurance ,supervisors1 notwithstanding
 the concerns of ,u4,s4 parties to the  
,international ,association of          
,insurance ,supervisors1 unequally      
affects insurance products offered in   
the ,united ,states1 an issue that must 
be addressed4  7#f7 ,any international  

standard agreed to at the ,international
 ,association of ,insurance ,supervisors
 is not self-executing in the ,united   
,states for any insurer until           
implemented through the required        
,federal or ,state legislative or       
regulatory process4  #c4 ,objectives for
 international insurance standards ,the 
objectives of the ,united ,states       
regarding international insurance       
standards are as follows3 7#a7 ,to      
ensure standards that maintain strong   
protection of policy holders1 as        
reflected in the ,united ,states        
solvency regime4  7#b7 ,to ensure1      
pursuant to enactment of the ,insurance 
,capital ,standards ,clarification ,act 
of #bjad 7,public ,law #aac-bgi71       
standards that are appropriate for      
insurers and are not bank-centric in    
nature4  7#c7 ,to promote a             
principles-based approach to insurance  
supervision1 in which capital adequacy  
is assessed using risk-based capital    
requirements for insurance combined with

 qualitative risk assessment and        
management tools4  7#d7 ,to consider the
 most efficient and least disruptive    
approaches to enhancing regulatory      
assessment of the capital adequacy of   
insurance groups1 including tools that  
are already in place4  7#e7 ,to ensure  
that any international insurance        
standard recognizes prudential measures 
used within the ,united ,states as      
satisfying standards finalized by       
international standard-setting          
organizations4  7#f7 ,to support        
increasing transparency at any global   
insurance or international              
standard-setting organization in which  
the ,united ,states participates1       
including advocating for greater        
stakeholder public observer access to   
working groups and committee meetings of
 the ,international ,association of     
,insurance ,supervisors4  7#g7 ,to      
ensure that there is a sufficient period
 for public consultation and comment    
regarding any proposed international    

insurance standard before it takes      
effect and that any such final standard 
is composed in plain writing 7as such   
term is defined in section #c of the    
,plain ,writing ,act of #bjaj 7#e       
,u4,s4,c4 #cja note774  7#h7 ,to ensure 
that the ,secretary of the ,treasury and
 the ,board of ,governors of the        
,federal ,reserve ,system achieve       
consensus positions with ,state         
insurance commissioners when the        
,secretary and the ,board are ,united   
,states participants in discussions on  
insurance issues before the             
,international ,association of          
,insurance ,supervisors1 ,financial     
,stability ,board1 or any other         
international forum of financial        
regulators or supervisors that considers
 such issues4  7#i7 ,to consider the    
impact of any such standard on the      
availability and cost of products to    
consumers4  7#aj7 ,to avoid measures    
that could limit the availability and   
accessibility of risk protection and    

retirement security products that are   
essential to meeting the needs of aging 
populations4  7#aa7 ,to ensure that the 
merits of existing ,state-based capital 
standards are recognized and            
incorporated in any domestic or global  
insurance capital standard4  7#ab7 ,to  
advocate for insurance regulatory       
standards that are based on the nature1 
scale1 and complexity of the risks posed
 by the regulated insurance group and   
entity or activity4  #d4 ,requirements  
for consent to adopt ,international     
insurance standards  7a7 ,publication of
 standards2 adoption of capital and     
prudential standards ,the ,united       
,states may not agree to1 accept1       
establish1 enter into1 or consent to the
 adoption of a final international      
insurance standard with an international
 standard-setting organization or a     
foreign government1 authority1 or       
regulatory entity unless the            
requirements under both of the following
 paragraphs are complied with3  7#a7    

,publication ,the requirements under    
this paragraph are complied with if the 
conditions under one of the following   
subparagraphs have been met3  7,a7 ,by  
,federal reserve and treasury ,the      
,chairman of the ,board of ,governors of
 the ,federal ,reserve ,system and the  
,secretary of the ,treasury have caused 
the proposed text of the proposed final 
international insurance standard to be  
published in the ,federal ,register and 
made available for public comment for a 
period of not fewer than #cj days 7which
 period may run concurrently with the   
#ij-;day period referred to in          
subsection 7b77#c774  7,b7 ,by state    
insurance commissioners ,the ,state     
insurance commissioners have caused the 
proposed text of the proposed           
international insurance standard to be  
published in a similar form and manner  
that provides for notice and public     
comment4  7#b7 ,capital standard ,in the
 case only of a final international     
insurance standard setting forth any    

capital standard or standards for       
insurers--  7,a7 such international     
capital standard is consistent with     
capital requirements set forth in the   
,state-based system of insurance        
regulation2  7,b7 the ,board has issued 
capital requirements for insurance      
companies supervised by the ,board and  
subject to such requirements1 which     
shall be issued through rulemaking in   
accordance with the procedures          
established under section #eec of title 
#e1 ,united ,states ,code1 regarding    
substantive rules1 under which the      
periods for notice and public comment   
shall each have a duration of not fewer 
than #fj days2 and  7,c7 to the extent  
that such international capital standard
 is intended to be applied to a company 
or companies supervised by the ,board of
 ,governors of the ,federal ,reserve    
,system1 is consistent with the capital 
requirements of the ,board for such     
companies4  7b7 ,submission and layover 
provisions ,the ,secretary and the      

,board may not agree to1 accept1        
establish1 enter into1 or consent to the
 adoption of an international insurance 
standard established through an         
international standard-setting          
organization or a foreign government1   
authority1 or regulatory entity unless--
  7#a7 the ,secretary and the ,board    
have-- 7,a7 conducted an analysis under 
subsection 7c7 of the proposed          
international insurance standard2 and   
7,b7 submitted to the covered           
congressional committees1 on a day on   
which both ,houses of ,congress are in  
session1 a copy of the proposed final   
text of the proposed international      
insurance standard and the report       
required under subsection 7c77#b7       
regarding such analysis2  7#b7 the      
,secretary and the ,chairman of the     
,board have determined1 pursuant to such
 analysis1 that the proposed standard   
will not result in any change in ,state 
law2  7#c7 with respect to a capital    
standard under subsection 7a77#b71 the  

,secretary and the ,chairman of the     
,board certify that the proposed        
international capital standard is       
designed solely to help ensure that     
sufficient funds are available to pay   
claims to an insurer's policyholders in 
the event of the liquidation of that    
entity2 and  7#d7 a period of #ij       
calendar days beginning on the date on  
which the copy of the proposed final    
text of the standard is submitted to the
 covered congressional committees under 
paragraph 7#a77;,b7 has expired1 during 
which period the ,congress may take     
action to approve or reject such final  
standard4  7c7 ,joint analysis by ,chair
 of the ,federal reserve and ,secretary 
of the ,treasury  7#a7 ,in general ,an  
analysis under this subsection of a     
proposed final international insurance  
standard shall be an analysis conducted 
by the ,secretary and the ,chairman of  
the ,board of ,governors of the ,federal
 ,reserve ,system1 in consultation with 
the ,state insurance commissioners1 of  

the impact of such standard on consumers
 and markets in the ,united ,states and 
whether any changes in ,state law will  
result from such final standard4  7#b7  
,report ,upon completion of an analysis 
under this subsection of a final        
international insurance standard1 the   
,secretary and the ,board shall submit a
 report on the results of the analysis  
to the covered congressional committees 
and the ,comptroller ,general of the    
,united ,states4 ,the report shall      
include a statement setting forth the   
determination made pursuant to paragraph
 7#a7 regarding any changes in ,state   
law resulting from such final standard4 
7#c7 ,notice and comment  7,a7 ,notice  
,the ,secretary and the ,chairman of the
 ,board of ,governors of the ,federal   
,reserve ,system shall provide notice   
before the date on which drafting the   
report is commenced and after the date  
on which the draft of the report is     
completed4  7,b7 ,opportunity for       
comment ,there shall be an opportunity  

for public comment for a period         
beginning on the date on which the      
report is submitted under paragraph 7#b7
 and ending on the date that is not     
fewer than #fj days after the date on   
which the report is submitted4 ,nothing 
in this subparagraph shall affect the   
authority of the ,board to issue the    
rule referred to in subsection 7a77#b74 
7#d7 ,review by comptroller general     
,upon submission of a report pursuant to
 paragraph 7#b7 to the ,comptroller     
,general1 the ,comptroller ,general     
shall review the report and shall submit
 a report to the ,congress setting forth
 the conclusions of the ,comptroller    
,general's review4  7d7 ,limited effect 
,this section may not be construed to   
establish or expand any authority to    
implement an international insurance    
standard in the ,united ,states or for  
the ,united ,states or any              
representative of the ,federal          
,government to adopt or enter into any  
international insurance standard4  7e7  

,treatment of ,state law ,in accordance 
with the ,act of ,march #i1 #aide       
7,chapter #bj2 #ei ,stat4 #cc2 #ae      
,u4,s4,c4 #ajaa et seq471 commonly      
referred to as the ,mc,carran-,ferguson 
,act1 this section may not be construed 
to preempt ,state law4  #e4 ,reports    
7a7 ,reports and testimony by ,secretary
 of the ,treasury and ,chair of the     
,federal ,reserve ,the ,secretary and   
the ,chairman of the ,board of          
,governors of the ,federal ,reserve     
,system shall submit to the covered     
congressional committees an annual      
report and provide testimony1 not less  
often than every #f months1 to the      
covered congressional committees on the 
efforts of the ,secretary and the       
,chairman with the ,state insurance     
commissioners with respect to           
international insurance standard-setting
 organizations and international        
insurance standards1 including--  7#a7 a
 description of the insurance           
standard-setting issues under discussion

 at international standard-setting      
bodies1 including the ,financial        
,stability ,board and the ,international
 ,association of ,insurance             
,supervisors2  7#b7 a description of the
 effects that international insurance   
standards could have on consumers and   
insurance markets in the ,united        
,states2  7#c7 a description of any     
position taken by the ,secretary and the
 ,board in international insurance      
discussions or on any international     
insurance standard2  7#d7 a description 
of the efforts by the ,secretary and the
 ,board to increase transparency and    
accountability at the ,financial        
,stability ,board with respect to       
insurance proposals and the             
,international ,association of          
,insurance ,supervisors1 including      
efforts to provide additional public    
access to working groups and committees 
of the ,international ,association of   
,insurance ,supervisors2 and  7#e7 a    
description of how the ,secretary and   

the ,board are meeting the objectives   
set forth in section #c1 or1 if such    
objectives are not being met1 an        
explanation of the reasons for not      
meeting such objectives4  7b7 ,reports  
and testimony by ,state insurance       
commissioners ,the ,state insurance     
commissioners may provide testimony or  
reports to the ,congress on the issues  
described in subsection 7a74  7c7       
,report on transparency ,not later than 
#ahj days after the date of enactment of
 this ,act1 the ,chairman of the ,board 
of ,governors of the ,federal ,reserve  
,system and the ,secretary shall submit 
to the ,congress a report and provide   
testimony to the ,congress on the       
efforts of the ,chairman and the        
,secretary pursuant to subsection       
7a77#d7 of this section to increase     
transparency at meetings of the         
,international ,association of          
,insurance ,supervisors4  7d7 ,,gao     
report on transparency of outside       
organizations  7#a7 ,in general ,not    

later than #a year after the date of    
enactment of this ,act1 the ,comptroller
 ,general of the ,united ,states shall  
submit to the covered congressional     
committees a report1 and provide        
testimony to such committees1           
identifying and analyzing the           
transparency and accountability of any  
organization acting as a designee of1 or
 at the direction of1 the head of a     
,state insurance department on issues   
related to international insurance      
standards1 which is not employed        
directly by the ,state4  7#b7 ,content  
,the report and testimony required under
 this section shall include a           
description and analysis of-- 7,a7 the  
role1 involvement1 or relationship1 of  
any organization identified pursuant to 
paragraph 7#a71 of1 with1 or to the     
,state insurance departments' activities
 as authorized by1 directed by1 or      
otherwise referred to in this ,act1     
including a description and analysis    
regarding such organization's           

participation in policy and             
decision-making deliberations and       
activities related to international     
insurance standards2  7,b7 any financial
 support provided by such organization  
to any ,state insurance department      
personnel in furtherance of their       
activities related to international     
insurance standards1 the nature and     
amount of such support1 and any         
understandings between the organization 
and the ,state regarding travel         
protocols and ,state laws governing     
,state officials' receipt of1           
benefitting from1 or being subsidized   
by1 outside funds2  7,c7 the budget1    
including revenues and expenses1 of any 
organization identified pursuant to     
paragraph 7#a7 relating to participation
 in international insurance discussions 
on issues before1 involving1 or relating
 to the ,international ,association of  
,insurance ,supervisors1 the ,financial 
,stability ,board1 or any other         
international forum of financial        

regulators or supervisors that considers
 such issues1 and how the organization  
collects money to fund such activities2 
7,d7 whether each such budget of such an
 organization is developed under a      
process comparable in its transparency  
and accountability to the process under 
which budgets are developed and         
appropriated for ,state departments of  
insurance and ,federal executive branch 
regulatory agencies1 including--  7i7 an
 identification of any bodies           
independent of the organization that set
 standards for and_/or oversee that     
organization's budgeting process2 and   
7ii7 a description of the extent to     
which and how the organization1 in      
funding its operations1 uses or benefits
 from its members' ability to compel    
entities subject to its members'        
regulatory authority to use the services
 of the organization or any of its      
affiliates2 and  7,e7 the extent to     
which the work product of any           
organization identified pursuant to     

paragraph 7#a7 has the effect of        
establishing any self-executing national
 standards1 and in what way1 and whether
 such standards are developed under     
processes comparable in their           
transparency and accountability to the  
process under which national standards  
are developed by the ,congress or       
,federal executive branch agencies4  #f4
 ,definitions ,in this ,act3 7#a7 ,board
 ,the term ,board means the ,board of   
,governors of the ,federal ,reserve     
,system1 or the designee of the ,board4 
7#b7 ,covered congressional committees  
,the term covered congressional         
committees means the ,committee on      
,financial ,services of the ,house of   
,representatives and the ,committee on  
,banking1 ,housing and ,urban ,affairs  
of the ,senate4  7#c7 ,international    
insurance standard ,the term            
international insurance standard means  
any international insurance supervisory 
standard developed by an international  
standards setting organization1 or      

regulatory or supervisory forum1 in     
which the ,united ,states participates1 
including the ,common ,framework for the
 ,supervision of ,internationally       
,active ,insurance ,groups1 the         
,financial ,stability ,board1 and the   
,international ,association of          
,insurance ,supervisors4  7#d7          
,secretary ,the term ,secretary means   
the ,secretary of the ,treasury1 or the 
,secretary's designee4  7#e7 ,state     
insurance commissioners ,the term ,state
 insurance commissioners means the heads
 of the ,state insurance departments or 
their designees acting at their         
direction4  #g4 ,treatment of covered   
agreements ,section #cad of title #ca1  
,united ,states ,code is amended-- 7#a7 
in subsection 7c7--  7,a7 by            
redesignating paragraphs 7#a7 and 7#b7  
as paragraphs 7#b7 and 7#c71            
respectively2 and  7,b7 by inserting    
before paragraph 7#b71 as so            
redesignated1 the following new         
paragraph3  7#a7 the ,secretary of the  

,treasury and the ,united ,states ,trade
 ,representative have caused to be      
published in the ,federal ,register1 and
 made available for public comment for a
 period of not fewer than #cj days      
7which period may run concurrently with 
the #ij-;day period for the covered     
agreement referred to in paragraph      
7#c771 the proposed text of the covered 
agreement2  2 and  7#b7 by adding at the
 end the following new subsections3  7d7
 ,consultation with ,state insurance    
commissioners ,in any negotiations      
regarding a contemplated covered        
agreement1 the ,secretary and the       
,united ,states ,trade ,representative  
shall consult with and directly include 
,state insurance commissioners4  7e7    
,prohibition on regulatory authority ,in
 accordance with subsections 7k7 and 7l7
 of section #cac1 a covered agreement   
shall not be used to establish or       
provide the ,federal ,insurance ,office 
or the ,treasury with any general       
supervisory or regulatory authority over

 the business of insurance or with the  
authority to participate in a           
supervisory college or similar process4 
7f7 ,treatment under other law ,a       
covered agreement shall not be          
considered an international insurance   
standard for purposes of the            
,transparent ,insurance ,standards ,act 
of #bjaf and shall not be subject to    
such ,act4  4  #h4 ,duties of           
independent member of ,financial        
,stability ,oversight ,council          
,subsection 7a7 of section #aab of the  
,dodd-,frank ,wall ,street ,reform and  
,consumer ,protection ,act 7#ab         
,u4,s4,c4 #ecbb7;a77 is amended by      
adding at the end the following new     
paragraph3  7#c7 ,duties of independent 
member ,to assist the ,council with its 
responsibilities to monitor             
international insurance developments1   
advise ,congress1 and make              
recommendations1 the ,independent       
,member of the ,council shall have the  
authority to--  7,a7 regularly consult  

with international insurance supervisors
 and international financial stability  
counterparts2  7,b7 consult with1       
advise1 and assist the ,secretary of the
 ,treasury with respect to representing 
the ,federal ,government of the ,united 
,states1 as appropriate1 in the         
,international ,association of          
,insurance ,supervisors 7including to   
become a non-voting member thereof71    
particularly on matters of systemic     
risk1 and to consult with the ,board of 
,governors of the ,federal ,reserve     
,system and the ,states concerning such 
matters2  7,c7 attend the ,financial    
,stability ,board of ,the ,group of     
,twenty and join with other members from
 the ,united ,states1 including on      
matters related to insurance and        
financial stability1 and provide for the
 attendance and participation at such   
,board1 on matters related to insurance 
and financial stability1 of ,state      
insurance commissioners2 and  7,d7      
attend1 with the ,united ,states        

delegation1 the ,organization for       
,economic ,cooperation and ,development 
and observe and participate at the      
,insurance and ,private ,pensions       
,committee of such ,organization on     
matters related to insurance and        
financial stability4  4  #i4 ,state     
insurance regulator involvement in      
international standard setting ,parties 
representing the ,united ,states at the 
,financial ,stability ,board of the     
,group of ,twenty on matters1 and in    
meetings1 related to insurance and      
financial stability shall consult with1 
and seek to include in such meetings1   
the ,state insurance commissioners4     
#aj4 ,rule of construction ,nothing in  
this ,act or the amendments made by this
 ,act may be construed to support or    
endorse the domestic capital standard   
for insurers referred to in section     
#d7;a77#b7 or any such domestic capital 
standards established by the ,board4    
#aa4 ,securities and ,exchange          
,commission ,reserve ,fund ,clause 7i7  

of section #d7;i77#b77;,b7 of the       
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;d7i77#b77;,b77i77 is     
amended by inserting before the         
semicolon the following3 1 except that  
for fiscal year #bjag1 the amount       
deposited may not exceed #dc1jjj1jjj4   
,passed the ,house of ,representatives  
,december #g1 #bjaf4,karen ,l4          
,haas1,clerk