I
113th CONGRESS
2d Session
H. R. 4510
IN THE HOUSE OF REPRESENTATIVES
April 29, 2014
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 clarify the application of certain leverage and risk-based requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Short title
This Act may be cited as the Insurance Capital Standards Clarification Act of 2014
.
Clarification of application of leverage and risk-based capital requirements
Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5371) is amended—
in subsection (a), by adding at the end the following:
Business of insurance
The term business of insurance has the same meaning as in section 1002(3).
Person regulated by a state insurance regulator
The term person regulated by a State insurance regulator has the same meaning as in section 1002(22).
Regulated foreign subsidiary and regulated foreign affiliate
The terms regulated foreign subsidiary
and regulated foreign affiliate
mean a person engaged in the business of insurance in a foreign country that is regulated by a
foreign insurance regulatory authority that is a member of the
International Association of Insurance Supervisors or other comparable
foreign insurance regulatory authority as determined by the Board of
Governors following consultation with the State insurance regulators,
including the lead State insurance commissioner (or similar State
official) of the insurance holding company system as determined by the
procedures within the Financial Analysis Handbook adopted by the National
Association of Insurance Commissioners, where the person, or its principal
United States insurance affiliate, has its principal place of business or
is domiciled, but only to the extent that—
such person acts in its capacity as a regulated insurance entity; and
the Board of Governors does not determine that the capital requirements in a specific foreign jurisdiction are inadequate.
Capacity as a regulated insurance entity
The term capacity as a regulated insurance entity—
includes any action or activity undertaken by a person regulated by a State insurance regulator or a regulated foreign subsidiary or regulated foreign affiliate of such person, as those actions relate to the provision of insurance, or other activities necessary to engage in the business of insurance; and
does not include any action or activity, including any financial activity, that is not regulated by a State insurance regulator or a foreign agency or authority and subject to State insurance capital requirements or, in the case of a regulated foreign subsidiary or regulated foreign affiliate, capital requirements imposed by a foreign insurance regulatory authority.
; and
by adding at the end the following new subsection:
Clarification
In general
In establishing the minimum leverage capital requirements and minimum risk-based capital requirements on a consolidated basis for a depository institution holding company or a nonbank financial company supervised by the Board of Governors as required under paragraphs (1) and (2) of subsection (b), the appropriate Federal banking agencies shall not be required to include, for any purpose of this section (including in any determination of consolidation), a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person engaged in the business of insurance, to the extent that such person acts in its capacity as a regulated insurance entity.
Rule of construction on board’s authority
This subsection shall not be construed to prohibit, modify, limit, or otherwise supersede any other provision of Federal law that provides the Board of Governors authority to issue regulations and orders relating to capital requirements for depository institution holding companies or nonbank financial companies supervised by the Board of Governors.
Rule of construction on accounting principles
Notwithstanding any other provision of law, a depository institution holding company or nonbank financial company supervised by the Board of Governors of the Federal Reserve that is also a person regulated by a State insurance regulator or a regulated foreign subsidiary or a regulated foreign affiliate of such person that files its holding company financial statements utilizing only Statutory Accounting Principles in accordance with State law, shall not be required to prepare such financial statements in accordance with Generally Accepted Accounting Principles.
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