II 110th CONGRESS 1st Session S. 40 IN THE SENATE OF THE UNITED STATES May 24, 2007 Mr. Sununu (for himself and Mr. Johnson) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To authorize the issuance of Federal charters and licenses for carrying on the sale, solicitation, negotiation, and underwriting of insurance or any other insurance operations, to provide a comprehensive system for the Federal regulation and supervision of national insurers and national agencies, to provide for policyholder protections in the event of an insolvency or the impairment of a national insurer, and for other purposes.

1.

Short title; table of contents

(a)

Short Title

This Act may be cited as the National Insurance Act of 2007. (b)

Table of Contents

The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Purposes. Sec. 3. Definitions. TITLE I—Office of National Insurance Subtitle A—Establishment of Office of National Insurance Sec. 1101. Establishment. Sec. 1102. Commissioner of National Insurance. Sec. 1103. Office personnel matters. Sec. 1104. Division of Insurance Fraud. Sec. 1105. Division of Consumer Affairs. Sec. 1106. Insurance self-regulatory organizations. Sec. 1107. Office of the Ombudsman. Subtitle B—Supervision of National Insurers and National Agencies Sec. 1121. Examination of national insurers and national agencies. Sec. 1122. Examination fees and other assessments. Sec. 1123. Disclosure of information. Sec. 1124. Reporting requirement. Sec. 1125. Regulatory supervision and relationship to State law. Sec. 1126. Preservation of office records. Sec. 1127. Compliance with anti-money laundering requirements. Subtitle C—Enforcement of Federal Insurance Laws Sec. 1141. National insurer license suspension, restriction, or revocation. Sec. 1142. Suspension, restriction, or revocation of Federal license of national agencies and federally licensed insurance producers. Sec. 1143. Cease-and-desist proceedings. Sec. 1144. Affirmative action to correct conditions resulting from violations or conduct. Sec. 1145. Suspension, removal, and prohibition authority. Sec. 1146. Suspension or prohibition based on criminal activity. Sec. 1147. Ancillary provisions. Sec. 1148. Hearings and judicial review of suspension, removal, or prohibition order. Sec. 1149. Civil and criminal penalties. Sec. 1150. Public disclosures of final orders and agreements. Sec. 1151. Foreign investigations. Sec. 1152. Action or proceeding against non-United States insurers. Sec. 1153. Cooperation between Commissioner and State commissioners. Subtitle D—Insurance Fraud Sec. 1161. Investigation of insurance fraud. Sec. 1162. Penalties. Sec. 1163. Civil remedy. TITLE II—National Insurance Companies And National Insurance Agencies Subtitle A—Organization, Licensing, and Operations Sec. 1201. Organization, operation, and regulation of national insurance companies and national insurance agencies. Sec. 1202. United States branches of non-United States insurers. Sec. 1203. Federal licensing of national insurers. Sec. 1204. Corporate governance. Sec. 1205. Participating policy procedures. Sec. 1206. Conversion of State insurer to national insurer or State insurance agency to national agency. Sec. 1207. Conversion of national insurer to State insurer or national agency to State agency. Sec. 1208. Powers. Sec. 1209. Separate accounts of national life insurer. Sec. 1210. Protected cells. Sec. 1211. Chartering and licensing commencement date. Subtitle B—Financial, Product, and Market Regulations Sec. 1212. Transitional financial regulations. Sec. 1213. Other financial regulations. Sec. 1214. Product regulation for national life insurers. Sec. 1215. Product regulation for national property/casualty insurers. Sec. 1216. Regulation of sales and marketing. Sec. 1217. Prompt corrective action. Subtitle C—Reinsurance Sec. 1221. Federal licensing of reinsurers. Sec. 1222. Credit for insurance ceded by a national insurer or federally licensed reinsurer. Sec. 1223. Relationship to State law. Sec. 1224. Freedom of commercial contract. Sec. 1225. Review by the Commissioner. Subtitle D—Acquisitions of Control; Mergers; Bulk Transfers; Domestication Sec. 1231. Acquisition of control of national insurers. Sec. 1232. Mergers, consolidations, and acquisitions of national insurers. Sec. 1233. Bulk transfers. Sec. 1234. Domestication of United States branch of a non-United States insurer. Sec. 1235. Mergers, consolidations, and acquisitions of national agencies. Subtitle E—Conversions Sec. 1241. Definitions. Sec. 1242. Conversion of stock life insurer to national life insurer in mutual form. Sec. 1243. Conversion of mutual insurer to national insurer in stock form. Subtitle F—State Taxation Sec. 1251. State taxation of national insurers. Sec. 1252. State taxation of national agencies. Sec. 1253. State taxation of non-admitted and surplus lines insurance. TITLE III—Insurance Producers And Other Insurance Servicing Persons Sec. 1301. Federal licensing of insurance producers. Sec. 1302. Producer database. Sec. 1303. Supervision and oversight of federally licensed insurance producers. Sec. 1304. Relationship to State law. Sec. 1305. Licensing commencement date. TITLE IV—Holding Companies Sec. 1401. Definitions. Sec. 1402. Registration. Sec. 1403. Standards and management of a national insurer within an insurance holding company system. Sec. 1404. Relationship to State law. Sec. 1405. Conflict with other Federal laws. Sec. 1406. No delegation permitted. TITLE V—Receivership Sec. 1501. Appointment of Office as receiver. Sec. 1502. Effect of receivership proceeding. Sec. 1503. Powers and duties. Sec. 1504. Rulemaking. Sec. 1505. Judicial review. TITLE VI—Insolvency Protection Sec. 1601. Participation in guaranty associations. Sec. 1602. Qualified and nonqualified associations. Sec. 1603. Establishment of the National Insurance Guaranty Corporation. Sec. 1604. Benefits for policyholders of national life insurers. Sec. 1605. Claims covered for policyholders of national property/casualty insurers. Sec. 1606. Powers and duties of the Corporation. Sec. 1607. Subrogation. Sec. 1608. Assessments. Sec. 1609. Regulations. Sec. 1610. State taxation. Sec. 1611. Examination of the Corporation; annual report. Sec. 1612. Immunity. TITLE VII—Conforming Amendments and Miscellaneous Provisions Sec. 1701. Nondiscrimination. Sec. 1702. Application of the Federal antitrust laws to national insurers, national agencies, and federally licensed insurance producers. Sec. 1703. Application of State law and regulation to national insurers, national agencies, and federally licensed insurance producers. Sec. 1704. Federal court jurisdiction. Sec. 1705. Federal court venue. Sec. 1706. Judicial review. Sec. 1707. Amendment to the Freedom of Information Act. Sec. 1708. Amendments to the Federal securities laws. Sec. 1709. Amendments to the Employee Retirement Income Security Act of 1974. Sec. 1710. Amendments to the Gramm-Leach-Bliley Act. Sec. 1711. Amendments to the Federal Deposit Insurance Act. Sec. 1712. Amendments to the Bank Holding Company Act of 1956. Sec. 1713. Amendments to title 18 (crimes and criminal procedure). Sec. 1714. Amendments to the Americans with Disabilities Act of 1990. Sec. 1715. Amendment to the Age Discrimination in Employment Act. Sec. 1716. Amendments to the Fair Credit Reporting Act.

2.

Purposes

The purposes of this Act are— (1)to establish a comprehensive system of Federal chartering, licensing, regulation, and supervision for insurers and insurance producers that is independent of the State system of insurance licensing, regulation, and supervision, yet that requires federally chartered and licensed insurers and producers to comply with certain State laws, including State tax laws; (2)to provide for the creation of an Office of National Insurance within the Department of the Treasury that is funded by assessments imposed upon federally chartered and licensed insurers and insurance producers; and (3)to provide for the appointment of a Commissioner of National Insurance, who, among other duties, is authorized— (A)to issue Federal charters and licenses to insurers and insurance producers; (B)to exclusively regulate and supervise the operations and solvency of federally chartered or licensed insurers and producers on a uniform, nationwide basis, including the conduct of such insurers and producers with policyholders; and (C)to protect the interests of policyholders by establishing a comprehensive scheme for the receivership for federally chartered insurers that requires federally chartered insurers to participate in qualified State guaranty funds.

3.

Definitions

In this Act, the following definitions shall apply: (1)

Affiliate

The term affiliate means any person that controls, is controlled by, or is under common control with another person. (2)

Business entity

The term business entity means a corporation, association, partnership, trust, limited liability company, limited liability partnership, or other legal entity. (3)

Business of insurance

The term business of insurance has the meaning given to such term in section 1033(f) of title 18, United States Code. (4)

Commissioner

The term Commissioner means the Commissioner of National Insurance. (5)

Control

(A)

In general

The term control, including the terms controlling, controlled by, and under common control with means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract or otherwise, unless the power is the result of an official position with or corporate office held by a person. (B)

Special rule

For purposes of sections 1204(c), 1231, 1243(g), and title IV, control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing, 10 percent or more of the voting securities of any other person. (6)

Corporate governance procedures

The term corporate governance procedures includes rules governing— (A)corporate finance; (B)shareholders, members, policyholders, directors, and officers and meetings, elections, voting, and notice relating to such persons; (C)indemnification of directors and officers and insurance for indemnification of directors and officers; and (D)the duties of shareholders, directors, and officers (including any duty of care or duty of fair dealing and any business judgment rule). (7)

Corporation

The term Corporation means the National Insurance Guaranty Corporation established under section 1603. (8)

Federal banking agencies

The term Federal banking agencies means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision. (9)

Federally licensed insurance producer

The term federally licensed insurance producer means a person, including a national agency and a natural person acting on behalf of a national agency, that is an insurance producer licensed pursuant to section 1301. (10)

Fraudulent insurance act

The term fraudulent insurance act has the meaning given to such term in section 1037A(d)(3) of title 18, United States Code. (11)

Functional regulator

The term functional regulator means— (A)in the case of a broker-dealer, investment advisor or investment company, the Securities and Exchange Commission; (B)in the case of a State insurer or State insurance producer, the appropriate State insurance regulator of a State that has jurisdiction over such insurer or insurance producer; (C)in the case of a bank holding company or financial holding company, the Federal Reserve Board; (D)in the case of a savings and loan holding company, the Office of Thrift Supervision; (E)in the case of a national bank, the Office of the Comptroller of the Currency; (F)in the case of a Federal savings bank or Federal savings association, the Office of Thrift Supervision; (G)in the case of a State bank, the appropriate State banking authority for the State in which the bank is chartered or the Federal Deposit Insurance Corporation, in the case of a State bank that is not a member of the Federal Reserve System, or the Federal Reserve Board, in the case of a State bank that is a member of the Federal Reserve System; (H)in the case of a State savings bank or State savings association, the appropriate banking authority for the State in which the thrift is chartered; and (I)in the case of a commodities company, the Commodities Exchange Commission. (12)

Functionally regulated affiliate

The term functionally regulated affiliate means— (A)a broker or dealer that is registered under the Securities Exchange Act of 1934; (B)a registered investment adviser, registered by or on behalf of either the Securities and Exchange Commission or any State; (C)an investment company that is registered under the Investment Company Act of 1940; (D)a State insurer or State insurance producer that is subject to supervision by a State insurance regulator; (E)a bank holding company or financial holding company registered with or certified by the Federal Reserve Board; (F)a national bank subject to the supervision of the Office of the Comptroller of the Currency; (G)a State bank subject to the supervision of a State banking regulator; (H)a Federal savings bank or Federal savings association subject to the supervision of the Office of Thrift Supervision; (I)a State savings bank or State savings association subject to the supervision of a State banking regulator; and (J)a business entity that is subject to regulation by the Commodity Futures Trading Commission, with respect to commodities activities of such entity and activities incidental to such commodities activities. (13)

Insolvency; insolvent

(A)

In general

The term insolvency or insolvent means the inability of an insurer to pay its obligations when they are due or when the assets do not exceed liabilities plus the greater of— (i)any capital and surplus required by law for its organization; or (ii)the total par or stated value of its authorized and issued capital stock. (B)

Liabilities

In this paragraph, the term liabilities shall include reserves required by statute or by rule or specific requirements imposed by the Commissioner upon an insurer. (14)

Insurance operations

The term insurance operations includes— (A)the business of insurance; (B)all acts and transactions relating to the sale, solicitation, negotiation, and underwriting of insurance; (C)all acts and transactions relating to claims adjustment and settlement; (D)all acts and transactions relating to the establishment of rates, rules, risk classifications, rating classifications, rating territories, and forms (including, endorsements, addendums, and policy language) for insurance; (E)all acts and transactions relating to marketing and sales practices; (F)financial condition and solvency; (G)holding company transactions; and (H)corporate governance. (15)

Insurance person

The term insurance person has the same meaning as in section 1037A(d)(4) of title 18, United States Code. (16)

Insurance producer

The term insurance producer— (A)means any person, including a national agency and a natural person acting on behalf of a national agency, that sells, solicits, or negotiates policies of insurance, non-admitted insurance, and surplus lines of insurance; and (B)does not include— (i)a national insurer; (ii)an officer, director, or employee of a national insurer or of an insurance producer— (I)if the officer, director, or employee does not receive any commission or other compensation on insurance policies written or sold by the national insurer or insurance producer, which commission or other compensation is directly dependent upon the amount of insurance policies written or sold; and (II)if— (aa)the activities of the officer, director, or employee are executive, administrative, managerial, clerical, or a combination thereof, and are only indirectly related to the sale, solicitation, or negotiation of insurance; (bb)the functions of the officer, director, or employee relate to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a policy of insurance; or (cc)the officer, director, or employee is acting in the capacity of a special agent or agency supervisor assisting insurance producers where the person’s activities are limited to providing technical advice and assistance to federally licensed insurance producers, and do not include the sale, solicitation, or negotiation of insurance; (iii)a person who secures and furnishes information for the purpose of group insurance policies, or for the purpose of enrolling individuals under plans, or issuing certificates under plans, or otherwise assisting in administering plans, where no commission or other compensation directly dependent upon the amount of insurance policies written or sold is paid to the person for the service; (iv)an employer or association or its officers, directors, employees, or the trustees of an employee trust plan, to the extent that the employer, association, officer, director, employee, or trustee is engaged in the administration or operation of a program of employee benefits for the employer’s or association’s own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance written by the national insurer, as long as the employer, association, officer, director, employee, or trustee is not in any manner compensated, directly or indirectly, by the national insurer; (v)an employee of a national insurer or an organization employed by a national insurer that is engaging in the inspection, rating, or classification of risks, or in the supervision of the training of insurance producers and that is not individually engaged in the sale, solicitation, or negotiation of insurance; (vi)a person whose activities are limited to advertising without the intent to solicit insurance through communications in printed publications or other forms of electronic mass media, provided that the person does not sell, solicit, or negotiate insurance; (vii)a salaried full-time employee who counsels or advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer provided that the employee does not sell or solicit insurance or receive a commission or other compensation directly dependent upon the amount of insurance policies written or sold; (viii)a person that sells, solicits, or negotiates a funding agreement; or (ix)any other kind of person identified by the Commissioner, by regulation, as not being an insurance producer for purposes of this Act. (17)

Insurance securitization

The term insurance securitization means the issuance of debt instruments by a national insurer, the proceeds from which support the exposures attributed to a protected cell, where repayment of principal or interest, or both, to investors under the transaction terms is contingent upon the occurrence or nonoccurrence of an event with respect to which the national insurer is exposed to loss under insurance policies or reinsurance contracts it has written. (18)

Insurer-affiliated party

The term insurer-affiliated party means— (A)any director, officer, employee, or controlling shareholder of, or agent for, a national insurer or a national agency; (B)any other person who has filed or is required to file a statement with the Commissioner under section 1231; (C)any shareholder, consultant, joint venture partner, and any other person as determined by the Commissioner (by regulation or order) who participates in the conduct of the affairs of a national insurer or a national agency; and (D)any independent contractor (including any attorney, actuary, or accountant) of a national insurer or a national agency who in that capacity knowingly or recklessly participates in any violation of any law or regulation, any breach of fiduciary duty, or any conduct that involves an undue risk of loss to the policyholders of a national insurer as a whole, and which violation, breach, or conduct caused or is likely to cause more than a minimal financial loss to, or a significant adverse effect on, a national insurer or the policyholders as a whole of a national insurer. (19)

Insurer in fraternal form

The term insurer in fraternal form means an incorporated society, order, or supreme lodge, without capital stock (generally known as a fraternal benefit society), that— (A)is conducted solely for the benefit of its members and their beneficiaries and not for profit; (B)is operated on a lodge system with ritualistic form of work; (C)has a representative form of government; (D)provides benefits to members and their dependents; and (E)operates for 1 or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or religious purposes for the benefit of its members, which may also be extended to others. (20)

NAIC

The term NAIC means the National Association of Insurance Commissioners. (21)

National agency

The term national agency means a national insurance agency chartered under section 1201. (22)

National insurer

The term national insurer means a national insurance company chartered under section 1201. (23)

National life insurer

The term national life insurer means a national insurer that holds a Federal license to sell, solicit, negotiate, and underwrite 1 or both of life insurance and annuities, provided that a national life insurer may also sell, solicit, negotiate, and underwrite disability income insurance, long-term care insurance, and funding agreements. (24)

National property/casualty insurer

The term national property/casualty insurer means a national insurer that holds a Federal license to sell, solicit, negotiate, and underwrite any combination of lines of property/casualty insurance. (25)

Negotiate

The term negotiate, in the context of negotiating insurance, means the act of conferring directly with or offering advice directly to a purchaser or prospective purchaser of a particular policy of insurance concerning any of the substantive benefits, terms, or conditions of the contract, provided that the person engaged in that act either sells insurance to or obtains insurance coverage for purchasers. (26)

Non-admitted insurance

The term non-admitted insurance means any property/casualty insurance permitted to be placed directly or through an insurance producer with a non-admitted insurer eligible to accept such insurance. (27)

Non-admitted insurer

The term non-admitted insurer means an insurer that is not licensed to engage in the business of insurance in a State and that— (A)satisfies the eligibility requirements of the State in which an insured maintains its principal place of business, or, in the case of an individual, maintains a principal residence; and (B)is not a national insurer. (28)

Non-United States insurer

The term non-United States insurer means a business entity that is organized under the law of a foreign country to sell, solicit, negotiate, and underwrite insurance, but is not so organized under the laws of a State, and is not a national insurer. (29)

Office

The term Office means the Office of National Insurance. (30)

Participating policy procedures

The term participating policy procedures— (A)means the rules applicable to a life insurer in mutual form, by which the insurer ascertains divisible surplus and apportions an amount of divisible surplus to participating insurance policies; and (B)does not include any limitation on the amount of surplus that may be retained by a life insurer in mutual form. (31)

Person

The term person means any natural person, business entity, governmental body or entity, voluntary organization, or similar organization. (32)

Policy of insurance; insurance policy

The term policy of insurance or insurance policy means a policy, contract, certificate, or other evidence of insurance. Policy of insurance or insurance policy includes an annuity contract and a funding agreement, but does not include a reinsurance contract. (33)

Policyholder

The term policyholder of an insurance policy means the person who is identified as the legal owner under the terms of the insurance policy or who is otherwise vested with legal title to the insurance policy. An assignment, absolute on its face, completed in accordance with the terms of the insurance policy and properly recording the assignee as the policyholder on the books of the insurer vests legal title in the name of the assignee. The term policyholder does not include a person with a mere beneficial interest in an insurance policy or a person to whom an insurance policy is assigned for collateral security purposes. (34)

Property/casualty insurance

The term property/casualty insurance— (A)means a product that insures, guarantees, or indemnifies against liability, loss of life, loss of health, or loss through damage to or destruction of property, including surety bonds, private passenger or commercial automobile, homeowners, mortgage guaranty, financial guaranty, commercial multiperil, general liability, professional liability, workers’ compensation, fire and allied lines, farm or ranch owners multiperil, aircraft, fidelity, surety, medical malpractice, ocean marine, inland marine, and boiler and machinery insurance; and (B)does not include life insurance, disability income insurance, long-term care insurance, health insurance, annuities, a funding agreement, or title insurance. (35)

Protected cell

The term protected cell means an identified pool of assets and liabilities of a national insurer segregated and insulated from the remainder of the national insurer’s assets and liabilities. The remainder of the national insurer’s assets and liabilities includes general account assets and liabilities, separate account assets and liabilities, and assets and liabilities of other protected cells. (36)

Protected cell account

The term protected cell account means a specifically identified bank or custodial account established by a national insurer for the purpose of segregating the protected cell assets of 1 protected cell from the protected cell assets of other protected cells and from the assets of the national insurer’s general account and separate accounts. (37)

Sell

The term sell, in the context of selling a policy of insurance, includes exchanging a policy of insurance by any means, for money or any other valuable consideration, on behalf of an insurer. (38)

Separate account

The term separate account means an account established and maintained by a national life insurer under which income, gains, and losses, whether or not realized, from assets allocated to such account, are, in accordance with the applicable contract, credited to or charged against such account without regard to other income, gains, or losses of the national life insurer. (39)

Solicit

The term solicit, in the context of soliciting a policy of insurance, means attempting to sell insurance or asking or urging a person to apply for a particular kind of insurance from a particular insurer. (40)

State

The term State means each of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, any territory of the United States, Guam, American Samoa, the Trust Territory of the Pacific Islands, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands. (41)

State insurance agency

The term State insurance agency means an insurance producer that is organized under the laws of a State. (42)

State insurer

The term State insurer means an insurer incorporated or organized under the laws of a State. (43)

Subsidiary

The term subsidiary means a business entity controlled, directly or indirectly, by another business entity. For purposes of this definition— (A)a business entity is conclusively presumed to be controlled by a person that, directly or indirectly, with power to vote, owns, controls, or holds a majority of the outstanding voting securities of such business entity; (B)no presumption, either of control or of absence of control, arises if such ownership, control, or holding of voting securities is less than a majority but more than 5 percent; (C)absence of control is presumed if such ownership, control or holding of voting securities is 5 percent or less; and (D)in determining control, voting securities held in separate accounts of a business entity shall be deemed to be owned by the business entity, but voting securities in an investment advisory account that are not owned by a business entity but are held in an account as to which the business entity is an investment adviser shall not be deemed to be controlled or held by such business entity. (44)

Surplus lines of insurance

The term surplus lines of insurance means insurance on properties, risks, or exposures located or to be performed in a State with a non-admitted insurer that is sold, solicited, or negotiated by a national agency, federally licensed insurance producer, or other insurance producer. (45)

Title insurance

The term title insurance or business of title insurance means any of the following: (A)A contract insuring or indemnifying the owners of real or personal property, or other persons lawfully interested therein, against loss or damage arising from any of the following conditions, or the reinsurance thereof: (i)Defects in or any liens or encumbrances on the insured title. (ii)Unmarketability of the insured title. (iii)Invalidity, lack of priority, or unenforceability of any liens or encumbrances on the stated property. (iv)Lack of legal right of access to the land. (v)Unenforceability of rights in title to the real or personal property. (B)Insuring the correctness of searches and examinations of all instruments, liens, or charges affecting the title to real or personal property. (C)Procuring and furnishing information relative to the title to real or personal property, including abstracting, searching, and examining titles. (D)Handling escrows, settlements, or closings done in conjunction with subparagraph (A), (B), (C), (E), or (F). (E)Any product or service defined by the laws of any State, whether by statute, regulation, or administrative determination, as title insurance. (F)Doing or proposing to do any business substantially equivalent to any of the activities described in this paragraph, in a manner designed to evade the provisions of this Act. (46)

Title insurer

The term title insurer means a company organized under the laws of a State for the purpose of conducting the business of title insurance. (47)

Trusteed assets

The term trusteed assets means, with respect to a United States branch, assets required or permitted by this title to be deposited by a non-United States insurer with a qualified trustee for the security of its policyholders and creditors in the United States. (48)

Trusteed surplus

The term trusteed surplus means, with respect to a United States branch, the value of the insurer’s trusteed assets deposited with a trustee under section 1202(b), plus accrued investment income thereon where such income is collectible by the trustee, less the aggregate net amount of all of its reserves and other liabilities in the United States as determined under section 1202(b). (49)

United States branch

The term United States branch means the business unit through which business is transacted within the United States by a non-United States insurer and the assets and liabilities of the insurer within the United States pertaining to such business. (50)

United States holding company

The term United States holding company means, with respect to a national insurer, a person organized or incorporated in a State that directly or indirectly controls a national insurer. (51)

Violation

The term violation includes any action or inaction (alone or with another or others) for or toward causing, bringing about, participating in, counseling, or aiding or abetting a violation. (52)

Voting securities

The term voting securities means securities of any class or any ownership interest having voting power for the election of directors, trustees, or management of a business entity, other than securities having such power only by reason of the happening of a contingency.