[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2140 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2140
To permit insurance companies that are depository holding companies, or
are subsidiaries of depository holding companies, to comply with the
accounting and capital requirements applicable to the insurance company
under State law, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2013
Mr. Gary G. Miller of California (for himself and Mrs. McCarthy of New
York) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To permit insurance companies that are depository holding companies, or
are subsidiaries of depository holding companies, to comply with the
accounting and capital requirements applicable to the insurance company
under State law, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Insurance Capital and Accounting
Standards Act of 2013''.
SEC. 2. LEVERAGE AND RISK-BASED CAPITAL REQUIREMENTS.
Subsection (b) of section 171 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5371(b)) is amended--
(1) by redesignating paragraphs (3), (4), (5), (6), and (7)
as paragraphs (4), (5), (6), (7), and (8), respectively; and
(2) by inserting after paragraph (2) the following new
paragraph:
``(3) Insurance companies.--
``(A) In general.--The minimum leverage capital
requirements and the minimum risk-based capital
requirements established under paragraphs (1) and (2)
shall, for depository institution holding companies and
nonbank financial companies supervised by the Board of
Governors that is an insurance company, or that has one
or more subsidiaries that are insurance companies--
``(i) with respect to the insurance
company, adhere to the regulatory accounting
practices and procedures applicable to, and the
capital structure of, such companies; and
``(ii) with respect to the insurance
company, utilize the governing State law
capital requirements for insurance companies.
``(B) Compliance with capital requirements under
state law.--
``(i) Presumption.--Any insurance company,
insurance affiliate, or insurance subsidiary in
compliance with applicable risk-based capital
standards established under State law shall be
presumed to satisfy any minimum capital
requirements of this section.
``(ii) Determination of board with respect
to presumption.--The Board of Governors may, on
a case-by-case basis on the record, determine
that the presumption in clause (i) should not
apply, provided that the Board first
establishes through rulemaking the general
procedures and standards to be utilized for
such proceedings.
``(iii) Effect of determination.--Where the
Board of Governors makes a determination under
clause (ii) that the presumption should not
apply to a company, the requirements of
subparagraphs (A), (C), and (D) remain
applicable in establishing capital rules for
such company.
``(C) Analysis of leverage and risk based capital
requirements.--No requirements under paragraph (1) and
(2) for a company described under subparagraph (A)
shall apply unless the Board--
``(i) carries out a cost-benefit analysis
of the application of those requirements
specific to a company described under
subparagraph (A), including soliciting and
reviewing public comment of the analysis prior
to any final rulemaking, and the Board of
Governors determines that the benefits of
applying the requirements outweigh the cost;
and
``(ii) carries out a quantitative impact
study of the application of those requirements
specific to a company described under
subparagraph (A), including soliciting and
reviewing public comment of the study prior to
any final rulemaking, and only apply the
requirements if the Board of Governors
determines that the study shows the
requirements are appropriate.
``(D) Rulemaking requirements.--Any rulemaking
implementing paragraphs (1) and (2) shall separately
incorporate and reflect the requirements provided for
under subparagraphs (A), (B), and (C).''.
SEC. 3. ACCOUNTING STANDARDS APPLICABLE TO INSURANCE COMPANIES.
Section 115 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5325) is amended by adding at the end the
following:
``(h) Accounting Standards Applicable to Insurance Companies.--With
respect to a nonbank financial company supervised by the Board of
Governors that is an insurance company, the Board of Governors may not
require the insurance company to comply with accounting standards,
including generally accepted accounting principles, that are different
than those regulatory accounting standards applicable to the insurance
company under applicable State law.''.
SEC. 4. SOLVENCY, CAPITAL, AND ACCOUNTING REQUIREMENTS FOR INSURANCE-
BASED SAVINGS AND LOAN HOLDING COMPANIES.
Section 10(g) of the Home Owners' Loan Act (12 U.S.C. 1467a(g)) is
amended by adding at the end the following:
``(6) Solvency, capital, and accounting requirements for
insurance-based savings and loan holding companies.--
``(A) In general.--Notwithstanding any other
provision of this section, in establishing capital
standards required for a savings and loan holding
company that is an insurance company or that has one or
more subsidiaries that are insurance companies, the
Board shall--
``(i) with respect to the insurance
company, adhere to the regulatory accounting
practices and procedures applicable to, and the
capital structure of, such company;
``(ii) with respect to the insurance
company, utilize the governing State law
capital requirements for insurers; and
``(iii) not require any insurance company
to comply with accounting standards, including
generally accepted accounting principles, that
are different than those accounting standards
the company is required to comply with by the
company's State regulator.
``(B) Compliance with capital requirements under
state law.--
``(i) Presumption.--Any insurance company,
insurance affiliate, or insurance subsidiary in
compliance with applicable risk-based capital
standards established under State law shall be
presumed to satisfy any capital requirements of
this Act.
``(ii) Determination of board with respect
to presumption.--The Board may, on a case-by-
case basis on the record, determine that the
presumption in clause (i) should not apply,
provided that the Board first establishes
through rulemaking the general procedures and
standards to be utilized for such proceedings.
``(iii) Effect of determination.--Where the
Board makes a determination under clause (ii)
that the presumption should not apply to a
company, the requirements of subparagraphs (A),
(C), and (D) remain applicable in establishing
capital rules for such company.
``(C) Analysis of capital requirements.--No capital
requirements under this Act for a company described
under subparagraph (A) shall apply unless the Board--
``(i) carries out a cost-benefit analysis
of the application of those requirements
specific to a company described under
subparagraph (A), including soliciting and
reviewing public comment of the analysis prior
to any final rulemaking, and the Board
determines that the benefits of applying the
requirements outweigh the cost; and
``(ii) carries out a quantitative impact
study of the application of those requirements
specific to a company described under
subparagraph (A), including soliciting and
reviewing public comment of the study prior to
any final rulemaking, and only apply the
requirements if the Board determines that the
study shows the requirements are appropriate.
``(D) Rulemaking requirements.--Any rulemaking
setting capital rules for companies described in
subparagraph (A) shall separately incorporate and
reflect the requirements provided for under
subparagraphs (A), (B), and (C).''.
SEC. 5. SOURCE OF STRENGTH.
Section 38A of the Federal Deposit Insurance Act (12 U.S.C. 1831o-
1) is amended--
(1) by redesignating subsections (c), (d), and (e) as
subsections (d), (e), and (f), respectively; and
(2) by inserting after subsection (b) the following:
``(c) Insurance Regulator Consent.--In cases involving a depository
institution holding company that is an insurance company or that has
one or more subsidiaries that are insurance companies, before the
appropriate Federal banking agency may require such insurance company
to be used directly or indirectly as a source of financial strength
pursuant to subsection (a) or (b), the appropriate Federal banking
agency shall obtain--
``(1) the consent of the insurance commissioner (or similar
official charged with the principal responsibility of
supervising the business of insurance within each State,
territory, or insular possession of the United States) of the
insurance company's domiciliary State; and
``(2) a certification from such commissioner that the
commissioner considered the safety and soundness of the
insurance company or subsidiary insurance company prior to
providing such consent.''.
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