,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #egdf  ,,in ,,the ,,house ,,of  
,,representatives  ,february #c1        
#bjbj,ms4 ,moore 7for herself and ,mr4  
,smith of ,nebraska7 introduced the     
following bill2 which was referred to   
the ,committee on ,ways and ,means  ,a  
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to provide special rules
 for purposes of determining if         
financial guaranty insurance companies  
are qualifying insurance corporations   
under the passive foreign investment    
company rules4  #a4 ,treatment of       
financial guaranty insurance companies  
as qualifying insurance corporations    
under passive foreign investment company
 rules  7a7 ,in general ,section        
#abig7;f77#c7 of the ,internal ,revenue 
,code of #aihf is amended by adding at  
the end the following new subparagraph3 
7,c7 ,special rule for financial        
guaranty insurance companies  7i7 ,in   
general ,notwithstanding subparagraphs  
7,a77ii7 and 7,b71 the applicable       

insurance liabilities of a financial    
guaranty insurance company shall include
 its unearned premium reserves if--     
7,i7 such company is prohibited under   
generally accepted accounting principles
 from reporting on its applicable       
financial statements reserves for losses
 and loss adjustment expenses with      
respect to a financial guaranty         
insurance or reinsurance contract except
 to the extent that such reserve amounts
 are expected to exceed the unearned    
premium reserves on the contract1       
7,,ii7 the applicable financial         
statement of such company reports       
financial guaranty exposure of at least 
#ae-to-#a1 and  7,,iii7 such company    
includes in its insurance liabilities   
only its unearned premium reserves      
relating to insurance written or assumed
 that is within the single risk limits  
set forth in subsection 7,d7 of section 
#d of the ,financial ,guaranty          
,insurance ,guideline 7modified by using
 total shareholder's equity as reported 

on the applicable financial statement of
 the company rather than aggregate of   
the surplus to policyholders and        
contingency reserves74  7ii7 ,financial 
guaranty insurance company ,for purposes
 of this subparagraph1 the term         
financial guaranty insurance company    
means any insurance company the sole    
business of which is writing or         
reinsuring financial guaranty insurance 
7as defined in subsection 7,a7 of       
section #a of the ,financial ,guaranty  
,insurance ,guideline7 which is         
permitted under subsection 7,b7 of      
section #d of such ,guideline4  7iii7   
,financial guaranty exposure ,for       
purposes of this subparagraph1 the term 
financial guaranty exposure means the   
ratio of-- 7,i7 the net debt service    
outstanding insured or reinsured by the 
company that is within the single risk  
limits set forth in the ,financial      
,guaranty ,insurance ,guideline 7as     
reported on such company's applicable   
financial statement71 to  7,,ii7 the    

company's total assets 7as so reported74
  7iv7 ,financial ,guaranty ,insurance  
,guideline ,for purposes of this        
subparagraph1 the term ,financial       
,guaranty ,insurance ,guideline means   
the ,october #bjjh model regulation that
 was adopted by the ,national           
,association of ,insurance              
,commissioners on ,december #d1 #bjjg4  
4  7b7 ,reporting of certain items      
,section #abig7;f77#d7 of such ,code is 
amended by adding at the end the        
following new subparagraph3  7,c7       
,clarification that certain items on    
applicable financial statement be       
separately reported with respect to     
corporation ,an amount described in     
paragraph 7#a77;,b7 or clause 7i77,,ii71
 7i77,,iii71 7iii77,i71 or 7iii77,,ii7  
of paragraph 7#c77;,c7 shall not be     
treated as reported on an applicable    
financial statement for purposes of this
 section unless such amount is          
separately reported on such statement   
with respect to the corporation referred

 to in paragraph 7#a74  7,d7 ,authority 
of ,secretary to require reporting  7i7 
,in general ,each ,united ,states person
 who owns an interest in a specified    
non-publicly traded foreign corporation 
and who takes the position that such    
corporation is not a passive foreign    
investment company shall report to the  
,secretary such information with respect
 to such corporation as the ,secretary  
may require4  7ii7 ,specified           
non-publicly traded foreign corporation 
,for purposes of this subparagraph1 the 
term specified non-publicly traded      
foreign corporation means any foreign   
corporation-- 7,i7 which would be a     
passive foreign investment company if   
subsection 7b77#b77;,b7 did not apply1  
and  7,,ii7 no interest in which is     
traded on an established securities     
market4  4  7c7 ,effective date  7#a7   
,in general ,except as otherwise        
provided in this subsection1 the        
amendments made by this section shall   
take effect as if included in section   

#adeja of ,public ,law #aae-ig4  7#b7   
,reporting ,the amendment made by       
subsection 7b7 shall apply to reports   
made after the date of the enactment of 
this ,act4