,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #egdf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #c1 #bjbj,ms4
 ,moore 7= h]self & ,mr4 ,smi? (        
,nebraska7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to provide special
 rules = purposes ( det]m9+ if f9ancial 
gu>anty insurance companies are qualify+
 insurance corporations "u ! passive    
=eign inve/m5t company rules4  #a4      
,treatm5t ( f9ancial gu>anty insurance  
companies z qualify+ insurance          
corporations "u passive =eign inve/m5t  
company rules  7a7 ,9 g5]al ,section    
#abig7;f77#c7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new subp>agraph3  7,c7 ,special  
rule = f9ancial gu>anty insurance       
companies  7i7 ,9 g5]al ,not)/&+        
subp>agraphs 7,a77ii7 & 7,b71 !         
applicable insurance liabilities ( a    
f9ancial gu>anty insurance company %all 
include its une>n$ premium res]ves if-- 

7,i7 su* company is prohibit$ "u g5]ally
 accept$ acc\nt+ pr9ciples f report+ on 
its applicable f9ancial /atem5ts res]ves
 = losses & loss adju/m5t exp5ses )     
respect to a f9ancial gu>anty insurance 
or re9surance contract except to ! ext5t
 t su* res]ve am\nts are expect$ to     
exce$ ! une>n$ premium res]ves on !     
contract1  7,,ii7 ! applicable f9ancial 
/atem5t ( su* company reports f9ancial  
gu>anty exposure ( at lea/ #ae-to-#a1 & 
7,,iii7 su* company includes 9 its      
insurance liabilities only its une>n$   
premium res]ves relat+ to insurance     
writt5 or assum$ t is )9 ! s+le risk    
limits set =? 9 subsection 7,d7 (       
section #d ( ! ,f9ancial ,gu>anty       
,insurance ,guidel9e 7modifi$ by us+    
total %>ehold]'s equity z report$ on !  
applicable f9ancial /atem5t ( ! company 
r ?an aggregate ( ! surplus to          
policyhold]s & cont+5cy res]ves74  7ii7 
,f9ancial gu>anty insurance company ,=  
purposes ( ?is subp>agraph1 ! t]m       
f9ancial gu>anty insurance company means

 any insurance company ! sole bus9ess ( 
:i* is writ+ or re9sur+ f9ancial gu>anty
 insurance 7z def9$ 9 subsection 7,a7 ( 
section #a ( ! ,f9ancial ,gu>anty       
,insurance ,guidel9e7 :i* is p]mitt$ "u 
subsection 7,b7 ( section #d ( su*      
,guidel9e4  7iii7 ,f9ancial gu>anty     
exposure ,= purposes ( ?is subp>agraph1 
! t]m f9ancial gu>anty exposure means ! 
ratio (-- 7,i7 ! net debt s]vice out/&+ 
insur$ or re9sur$ by ! company t is )9 !
 s+le risk limits set =? 9 ! ,f9ancial  
,gu>anty ,insurance ,guidel9e 7z report$
 on su* company's applicable f9ancial   
/atem5t71 to  7,,ii7 ! company's total  
assets 7z s report$74  7iv7 ,f9ancial   
,gu>anty ,insurance ,guidel9e ,=        
purposes ( ?is subp>agraph1 ! t]m       
,f9ancial ,gu>anty ,insurance ,guidel9e 
means ! ,octob] #bjjh model regulation t
 0 adopt$ by ! ,national ,association ( 
,insurance ,commission]s on ,decemb] #d1
 #bjjg4  4  7b7 ,report+ ( c]ta9 items  
,section #abig7;f77#d7 ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     

subp>agraph3  7,c7 ,cl>ification t c]ta9
 items on applicable f9ancial /atem5t be
 sep>ately report$ ) respect to         
corporation ,an am\nt describ$ 9        
p>agraph 7#a77;,b7 or clause 7i77,,ii71 
7i77,,iii71 7iii77,i71 or 7iii77,,ii7 ( 
p>agraph 7#c77;,c7 %all n be treat$ z   
report$ on an applicable f9ancial       
/atem5t = purposes ( ?is section unless 
su* am\nt is sep>ately report$ on su*   
/atem5t ) respect to ! corporation      
ref]r$ to 9 p>agraph 7#a74  7,d7        
,au?ority ( ,secret>y to require report+
  7i7 ,9 g5]al ,ea* ,unit$ ,/ates p]son 
:o owns an int]e/ 9 a specifi$          
non-publicly trad$ =eign corporation &  
:o takes ! position t su* corporation is
 n a passive =eign inve/m5t company %all
 report to ! ,secret>y su* in=mation )  
respect to su* corporation z ! ,secret>y
 may require4  7ii7 ,specifi$           
non-publicly trad$ =eign corporation ,= 
purposes ( ?is subp>agraph1 ! t]m       
specifi$ non-publicly trad$ =eign       
corporation means any =eign             

corporation-- 7,i7 :i* w\ld be a passive
 =eign inve/m5t company if subsection   
7b77#b77;,b7 did n apply1 &  7,,ii7 no  
int]e/ 9 :i* is trad$ on an e/abli%$    
securities m>ket4  4  7c7 ,effective    
date  7#a7 ,9 g5]al ,except z o!rwise   
provid$ 9 ?is subsection1 ! am5dm5ts    
made by ?is section %all take effect z  
if includ$ 9 section #adeja ( ,public   
,law #aae-ig4  7#b7 ,report+ ,! am5dm5t 
made by subsection 7b7 %all apply to    
reports made aft] ! date ( ! enactm5t ( 
?is ,act4