[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3123 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 3123
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 19, 2019
Mr. Tillis (for himself and Ms. Sinema) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
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.
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 ``State Insurance Regulation
Preservation Act''.
SEC. 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 adding at the end the following:
``(K) Domicile.--The term `domicile' means the
State in which an insurance underwriting company or the
holding company for the insurance underwriting company
is incorporated, chartered, or organized.
``(L) Business of insurance.--The term `business of
insurance' means any activity that is regulated in
accordance with the relevant State insurance laws and
regulations, including the writing of insurance and the
reinsuring of risks.
``(M) 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 not less than 1
insurance underwriting company, 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.
``(N) Insurance underwriting company.--The term
`insurance underwriting company' means an insurer that
is subject to regulation by a State insurance authority
of the domicile of the insurer.
``(O) State insurance authority.--The term `State
insurance authority' means the State insurance
authority of the State in which an insurance
underwriting company or the holding company for the
insurance underwriting company is domiciled.
``(P) 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 adding at the end the following:
``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:
``(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 and any
insurance underwriting company that is a subsidiary of
the insurance savings and loan holding company with
other Federal authorities and the State insurance
authority for the insurance savings and loan holding
company before requesting those reports or information
from the insurance savings and loan holding company or
any insurance underwriting company that is a subsidiary
of the insurance savings and loan holding company.
``(E) Rule of construction.--Nothing in this
section may be construed as prohibiting the Board from
requesting reports and other information that is not
otherwise collected and shared with other Federal or
State authorities.''.
(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:
``(B) Insurance savings and loan holding
companies.--The Board, to the fullest extent possible,
shall align any prescribed recordkeeping requirements
for an insurance savings and loan holding company with
the recordkeeping requirements imposed by the State
insurance authority of the insurance savings and loan
holding company and any insurance underwriting company
that is a subsidiary of the insurance savings and loan
holding company.''.
(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:
``(iii) Insurance savings and loan holding
companies.--
``(I) Coordination.--The Board, to
the fullest extent possible, shall
coordinate examinations of an insurance
savings and loan holding company in
conjunction with the State insurance
authority of the insurance savings and
loan holding company and any insurance
underwriting company that is a
subsidiary of insurance savings and
loan holding company and other State
and Federal authorities in order to
minimize the potential for duplication
and conflict between the examinations
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 under 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:
``(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 the State insurance authorities for
insurance savings and loan holding companies or
insurance underwriting companies that are
subsidiaries of insurance savings and loan
holding companies.
``(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 those letters and guidance are
not inconsistent with the supervisory framework
required under this paragraph.''.
SEC. 3. ASSESSMENTS AND FEES FOR INSURANCE SAVINGS AND LOAN HOLDING
COMPANIES.
The second subsection (s) of section 11 of the Federal Reserve Act
(12 U.S.C. 248; relating to assessments and fees) is amended by adding
at the end the following:
``(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) of the Home
Owners' Loan Act (12 U.S.C. 1467a(a)(1)), shall not include
assets attributable to the business of insurance conducted by
the insurance savings and loan holding company or any affiliate
of the insurance savings and loan holding company, other than
assets associated with insurance for credit risk.''.
SEC. 4. IMPLEMENTATION.
(a) Definition of Board.--In this section, the term ``Board'' means
the Board of Governors of the Federal Reserve System.
(b) Implementation of Supervisory Framework.--Not later than 2
years after the date of enactment of this Act, the Board shall
establish the supervisory framework required under paragraph (7) of
section 10(b) of the Home Owners' Loan Act (12 U.S.C. 1467a(b)), as
added by this Act.
(c) Review of Supervisory Guidance.--Not later than 30 months after
the date of enactment of this Act, the Board shall complete the review
of supervisory policy letters and policy guidance required under
paragraph (7) of section 10(b) of the Home Owners' Loan Act (12 U.S.C.
1467a(b)), as added by this Act.
(d) Report to Congress.--Not later than 3 years after the date of
enactment of this Act, the Board shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives a report on the
implementation of this Act.
SEC. 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
in section 10(a)(1) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)(1)), as added by this Act, that is provided by a Federal law
other than the Home Owners' Loan Act (12 U.S.C. 1461 et seq.).
SEC. 6. RULEMAKING AUTHORITY.
The Board may issue regulations and orders as may be necessary to--
(1) administer and carry out this Act and the amendments
made by this Act; and
(2) prevent evasions of this Act and the amendments made by
this Act.
SEC. 7. RULE OF CONSTRUCTION.
Nothing in this Act or the amendments made by this Act may be
construed to affect the authority of the Board of Governors of the
Federal Reserve System over any subsidiary of an insurance savings and
loan holding company that is not an insurance underwriting company, as
those terms are defined in section 10(a)(1) of the Home Owners' Loan
Act (12 U.S.C. 1467a(a)(1)), as added by this Act.
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