H.R. 5059 — Reported in House

IB Union Calendar No. 728 115th CONGRESS 2d Session H. R. 5059 [Report No. 115–937] IN THE HOUSE OF REPRESENTATIVES February 15, 2018 Mr. Rothfus (for himself and Mrs. Beatty) introduced the following bill; which was referred to the Committee on Financial Services September 12, 2018Additional sponsors: Mr. Luetkemeyer, Mr. Gonzalez of Texas, and Mr. Budd September 12, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed Strike out all after the enacting clause and insert the part printed in italic For text of introduced bill, see copy of bill as introduced on February 15, 2018 A BILL To amend the Home Owners’ Loan Act with respect to the registration and supervision of insurance savings and loan holding companies, and for other purposes. 1. Short title This Act may be cited as the State Insurance Regulation Preservation Act. 2. Supervision of insurance savings and loan holding companies (a) Definitions Section 10(a)(1) of the Home Owners’ Loan Act (12 U.S.C. 1467a(a)(1)) is amended by inserting at the end the following: (K) Business of insurance The term business of insurance means any activity that is regulated in accordance with the relevant State insurance law, including the writing of insurance and the reinsuring of risks. (L) Insurance savings and loan holding company The term insurance savings and loan holding company means— (i) a savings and loan holding company with 75 percent or more of its total consolidated assets in an insurance underwriting company (or insurance underwriting companies), other than assets associated with insurance for credit risk, during the 4 most recent consecutive quarters, as calculated in accordance with Generally Accepted Accounting Principles or the Statutory Accounting Principles in accordance with State law; (ii) a company that— (I) was a savings and loan holding company as of July 21, 2010, and through date of enactment of this clause; and (II) was not subject to the Basel III capital regulation promulgated by the Board of Governors of the Federal Reserve System and the Comptroller of the Currency on October 11, 2013 (78 Fed. Reg. 62018), because the savings and loan holding company held 25 percent or more of its total consolidated assets in subsidiaries that are insurance underwriting companies (other than assets associated with insurance for credit risk); or (iii) a top-tier savings and loan holding company that— (I) was registered as a savings and loan holding company before July 21, 2010; and (II) is a New York not-for-profit corporation formed for the purpose of holding the stock of a New York insurance company. (M) Insurance underwriting company The term insurance underwriting company means an entity that is subject to regulation by a State insurance authority. (N) State insurance authority The term State insurance authority means the chief insurance regulatory authority of a State. (O) Top-tier savings and loan holding company The term top-tier savings and loan holding company means the ultimate parent company in a savings and loan holding company structure. . (b) Registration Section 10(b)(1) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(1)) is amended by inserting at the end the following new sentence: A savings and loan holding company that is an insurance savings and loan holding company shall register as an insurance savings and loan holding company.. (c) Reports Section 10(b)(2) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(2)) is amended by adding at the end the following new subparagraph: (D) Insurance savings and loan holding companies The Board, to the fullest extent possible, shall request reports and other information filed by insurance savings and loan holding companies with other Federal or State authorities from such other authorities before requesting such reports or information from insurance savings and loan holding companies. . (d) Books and records Section 10(b)(3) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(3)) is amended— (1) by striking Each and inserting the following: (A) In general Each ; and (2) by inserting at the end the following new subparagraph: (B) Insurance savings and loan holding companies The Board, to the fullest extent possible, shall align any prescribed recordkeeping requirements for insurance savings and loan holding companies with the recordkeeping requirements imposed by State insurance authorities. . (e) Examinations Section 10(b)(4)(C) of the Home Owners’ Loan Act (12 U.S.C.1467a(b)(4)(C)) is amended— (1) in clause (i), by striking the word and at the end; (2) in clause (ii), by striking the period at the end and inserting ; and; and (3) by adding at the end the following new clause: (iii) Insurance savings and loan holding companies (I) Coordination The Board, to the fullest extent possible, shall conduct examinations of insurance savings and loan holding companies in conjunction with other State and Federal authorities in order to minimize the potential for duplication and conflict between the inspections conducted by the Board and the examinations conducted by other State and Federal authorities. (II) Scope and frequency Following public notice and comment, the Board shall establish a schedule for the frequency and the scope of examinations of insurance savings and loan holding companies that is consistent with the supervisory framework required by paragraph (7). . (f) Supervision Section 10(b) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)) is amended by inserting at the end the following new paragraph: (7) Insurance savings and loan holding companies (A) Tailored supervision The Board, by rule, shall establish a supervisory framework for insurance savings and loan holding companies that— (i) is tailored to the unique risks, operations, and activities of insurance savings and loan holding companies; and (ii) to the fullest extent possible, and consistent with the safe and sound operation of insurance savings and loan holding companies, does not unnecessarily duplicate the supervision of insurance underwriting companies by State insurance authorities. (B) Review of supervisory guidance Following public notice and comment, the Board shall review and revise supervisory policy letters and guidance applicable to insurance savings and loan holding companies to ensure that such letters and guidance are not inconsistent with the supervisory framework required by this paragraph. . 3. Assessments and fees for insurance savings and loan holding companies Section 11(s) of the Federal Reserve Act (12 U.S.C. 248(s)), which relates to assessments and fees, is amended by inserting at the end the following new paragraph: (4) Excluded assets For purposes of paragraph (2)(B), the total consolidated assets of an insurance savings and loan holding company, as defined in section 10(a)(1)(L) of the Home Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(L)), shall not include assets attributable to the business of insurance conducted by such company or any affiliate of such company, other than assets associated with insurance for credit risk. . 4. Implementation (a) Implementation of supervisory framework The Board shall establish the supervisory framework required by section 10(b)(7) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(7)), as added by this Act, within 24 months of the date of enactment of this Act. (b) Review of supervisory guidance The Board shall complete the review of supervisory policy letters and policy guidance required by section 10(b)(7) of the Home Owners’ Loan Act (12 U.S.C. 1467a(b)(7)), as added by this Act, within 30 months of the date of enactment of this Act. (c) Report to congress The Board, no later than 36 months after the date of enactment of this Act, shall submit a report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on the implementation of this Act. (d) Board defined As used in this section, the term Board means the Board of Governors of the Federal Reserve System. 5. Relationship to other laws This Act and the amendments made by this Act shall not limit any authority over insurance savings and loan holding companies (as defined under section 10(a)(1) of the Home Owners’ Loan Act) that is provided by a Federal law other than this Act. September 12, 2018 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed