[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2609 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2609

 To establish an Office of Insurance Information in the Department of 
                             the Treasury.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 21, 2009

  Mr. Kanjorski (for himself, Mrs. Biggert, Mr. Moore of Kansas, Mr. 
Capuano, Ms. Bean, Mr. Royce, and Mr. Scott of Georgia) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To establish an Office of Insurance Information in the Department of 
                             the Treasury.

    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 Information Act of 2009''.

SEC. 2. OFFICE OF INSURANCE INFORMATION.

    (a) Duties of Secretary.--Section 321(a) of title 31, United States 
Code, is amended--
            (1) in paragraph (7), by striking ``and'' at the end;
            (2) in paragraph (8)(C), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new paragraph:
            ``(9) serve as the principal advisor to the President and 
        the Congress on domestic and international policy issues in 
        connection with all lines of insurance except health 
        insurance.''.
    (b) Establishment of Office.--Subchapter I of chapter 3 of title 
31, United States Code, is amended--
            (1) by transferring and inserting section 312 after section 
        313;
            (2) by redesignating sections 313 and 312 (as so 
        transferred) as sections 312 and 314, respectively; and
            (3) by inserting after section 312 (as so redesignated) the 
        following new section:

``SEC. 313. OFFICE OF INSURANCE INFORMATION.

    ``(a) Establishment.--There is established within the Department of 
the Treasury the Office of Insurance Information.
    ``(b) Leadership.--The Office shall be headed by a Director, who 
shall be appointed by the Secretary of the Treasury. The position of 
such Director shall be a career reserved position in the Senior 
Executive Service.
    ``(c) Functions.--
            ``(1) Authority pursuant to direction of secretary.--The 
        Office shall have the authority, pursuant to the direction of 
        the Secretary, as follows:
                    ``(A) To receive and collect (directly from the 
                States and from other sources), and to analyze and 
                disseminate, data and information, and to issue 
                reports, regarding all lines of insurance except health 
                insurance, except that--
                            ``(i) the submission of any non-publicly 
                        available data and information to the Office 
                        shall be voluntary and such submission shall 
                        not constitute a waiver of, or otherwise 
                        affect, any privilege or confidentiality 
                        protection to which the data or information is 
                        otherwise subject;
                            ``(ii) to the extent that any such data and 
                        information has already been received or 
                        collected by, or can efficiently be received or 
                        collected by, the States (including the 
                        insurance commissioners of the States), the 
                        National Association of Insurance 
                        Commissioners, or any other appropriate source, 
                        the Office may enter into an information-
                        sharing agreement with such source to provide 
                        for the receipt of such data by the Office;
                            ``(iii) any requirement under Federal or 
                        State law to the extent otherwise applicable, 
                        or any requirement pursuant to a written 
                        agreement in effect between the original source 
                        of any non-publicly available data or 
                        information and the source of such data or 
                        information to the Office, regarding the 
                        privacy or confidentiality of any data or 
                        information in the possession of the source to 
                        the Office, and any privilege arising under 
                        Federal or State law (including the rules of 
                        any Federal or State court) with respect to 
                        such data or information, shall continue to 
                        apply to such data or information after the 
                        data or information has been provided pursuant 
                        to this subparagraph to the Office;
                            ``(iv) the Office shall treat as 
                        confidential and privileged any data or 
                        information obtained from any source that is 
                        entitled to confidential treatment under 
                        applicable State or Federal law or regulations, 
                        or under any agreement to which the source is a 
                        party and shall take all reasonable steps to 
                        oppose any effort to secure disclosure of the 
                        data or information by the Office;
                            ``(v) the Office may not in any case 
                        disclose to any party any personally 
                        identifiable information received or collected 
                        by the Office pursuant to this subparagraph; 
                        and
                            ``(vi) any non-publicly available data and 
                        information received or collected by the Office 
                        pursuant to this subparagraph shall be 
                        considered trade secrets and commercial or 
                        financial information that is privileged and 
                        confidential pursuant to section 552(b)(4) of 
                        title 5, United States Code, and may not be 
                        disclosed to the Advisory Group established 
                        under subsection (l).
                    ``(B) To coordinate Federal efforts and establish 
                Federal policy on international insurance matters, 
                including working with the International Association of 
                Insurance Supervisors.
                    ``(C) To determine, in accordance with subsection 
                (e), whether State insurance measures are inconsistent 
                with such policy, as included in covered agreements (as 
                such term is defined in subsection (m)).
                    ``(D) To serve as a liaison between the Federal 
                Government and the individual and several States 
                regarding insurance matters of national importance and 
                international importance.
                    ``(E) To serve as a primary advisor, regarding the 
                export promotion of United States insurance products 
                and services, to the Treasury representative to the 
                Trade Promotion Coordinating Committee.
            ``(2) Advisory functions.--To advise the Secretary on major 
        domestic and international insurance policy issues, including 
        matters that affect consumers and insurers, such as, and 
        including, financial guarantee insurance, catastrophe 
        insurance, and reinsurance requirements.
    ``(d) Scope.--The authority of the Office and the Director with 
respect to insurance shall extend to all lines of insurance except 
health insurance, as determined by the Secretary based on section 2791 
of the Public Health Service Act (42 U.S.C. 300gg-91).
    ``(e) Preemption of State Insurance Measures.--
            ``(1) Standard.--Subject to paragraph (3), a State 
        insurance measure shall be preempted if, and only to the extent 
        that, the measure--
                    ``(A) treats a non-United States insurer more or 
                less favorably than a United States insurer domiciled 
                in such State; and
                    ``(B) is determined, in accordance with this 
                subsection, to be inconsistent with Federal policy on 
                international insurance matters as--
                            ``(i) established by the Office; and
                            ``(ii) included in a covered agreement.
            ``(2) Determination.--
                    ``(A) Authority of director.--Pursuant to the 
                subsection (c)(1)(C), the Director may determine 
                whether inconsistencies referred to in paragraph (1)(B) 
                of this subsection exist.
                    ``(B) Notice of potential inconsistency.--Before 
                making any determination regarding whether an 
                inconsistency referred to in paragraph (1)(B) exists, 
                the Director shall--
                            ``(i) cause to be published in the Federal 
                        Register notice of the issue regarding the 
                        potential inconsistency or preemption, 
                        including a description of each State insurance 
                        measure at issue and the Federal policy on 
                        international insurance matters embodied in a 
                        covered agreement at issue;
                            ``(ii) provide interested parties a period 
                        of not less than 30 days during which to submit 
                        written comments to the Office; and
                            ``(iii) in making the determination, 
                        consider any comments received.
                    ``(C) Initial determination.--Upon making any 
                determination regarding whether an inconsistency 
                referred to in paragraph (1)(B) exists, the Director 
                shall--
                            ``(i) cause to be published in the Federal 
                        Register notice of such determination;
                            ``(ii) notify the appropriate State of such 
                        determination; and
                            ``(iii) in the case of determination that 
                        such an inconsistency exists, establish a 
                        reasonable period of time before a final 
                        determination under subparagraph (D) is made.
                    ``(D) Final determination.--In the case of an 
                initial determination that an inconsistency referred to 
                in paragraph (1)(B) exists, upon the conclusion of the 
                period referred to in subparagraph (C)(iii) of this 
                paragraph with respect to such determination, the 
                Director shall make a final determination of whether 
                such inconsistency still exists. If the Director 
                determines that such inconsistency still exists, the 
                Director shall cause to be published in the Federal 
                Register notice of such final determination and notify 
                the State and the Secretary of such final 
                determination.
                    ``(E) Consideration of stay by secretary; effective 
                date of preemption.--In the case of a final 
                determination under subparagraph (D) that an 
                inconsistency referred to in paragraph (1)(B) exists, 
                the Secretary, after consultation with the Director, 
                shall determine whether to stay preemption under 
                paragraph (3). Immediately upon such determination, the 
                Secretary shall cause to be published in the Federal 
                Register notice of whether the State insurance measure 
                is preempted pursuant to paragraph (1), to the extent 
                of the inconsistency, or whether preemption is stayed 
                pursuant to paragraph (3), and shall submit to the 
                Congress a copy of such notice. Any such preemption 
                shall be effective upon the expiration of the 90-day 
                period beginning upon the publication of notice under 
                this subparagraph unless the Congress by its action 
                prevents such effectiveness.
            ``(3) Stay.--Notwithstanding any determination by the 
        Director that an inconsistency referred to in paragraph (1)(B) 
        exists, the Secretary shall stay preemption under this 
        subsection, before publication of notice of preemption under 
        paragraph (2)(E), if the Secretary determines that--
                    ``(A) maintaining the State insurance measure is 
                necessary for prudential reasons, including for--
                            ``(i) the protection of policyholders and 
                        policy claimants;
                            ``(ii) the maintenance of the safety, 
                        soundness, integrity or financial 
                        responsibility of any entity involved in the 
                        business of insurance or insurance operations; 
                        or
                            ``(iii) ensuring the integrity and 
                        stability of the United States financial 
                        system;
                    ``(B) preemption will result in any need to 
                establish a supervisory or regulatory authority of the 
                Office or the Secretary over any entity involved in the 
                business of insurance or insurance operations in the 
                United States; or
                    ``(C) preemption will result in a gap or void in 
                financial or market conduct regulation of any entity 
                involved in the business of insurance or insurance 
                operations in the United States.
            ``(4) Administrative review.--Any State having an insurance 
        measure for which a final determination is made pursuant to 
        paragraph (2)(D) that an inconsistency referred to in paragraph 
        (1)(B) exists, and any other person aggrieved by such final 
        determination, shall have the right to appeal such final 
        determination of inconsistency to the Secretary, but only if 
        the Secretary receives notice of such appeal before publication 
        of notice of preemption under paragraph (2)(E). The Secretary 
        shall issue a decision concerning any such appeal before 
        considering whether to stay preemption under paragraph (3).
            ``(5) Applicability of administrative procedures act.--
        Determinations of inconsistency pursuant to paragraph (2)(D) 
        and of preemption pursuant to paragraph (2)(E) shall be subject 
        to the applicable provisions of subchapter II of chapter 5 of 
        title 5, United States Code (relating to administrative 
        procedure), and chapter 7 of such title (relating to judicial 
        review).
            ``(6) Limitation.--No State may enforce a State insurance 
        measure to the extent that it has been preempted pursuant to 
        this subsection.
            ``(7) Policies and procedures.--The Secretary may, by 
        publication in the Federal Register, issue policies and 
        procedures to implement this subsection and subsection 
        (c)(1)(C).
    ``(f) Savings Provisions.--Nothing in this section shall--
            ``(1) preempt any State insurance measure because of 
        inconsistency with any agreement that is not a covered 
        agreement (as such term in defined in subsection (m));
            ``(2) preempt any State insurance measure that relates to 
        an insurer's rates, premiums, underwriting practices, or 
        coverage requirements for insurance within that State, or to 
        the application of the antitrust laws of any State to the 
        business of insurance; or
            ``(3) affect the preemption of any State insurance measure 
        otherwise inconsistent with and preempted by Federal law.
    ``(g) Consultation.--
            ``(1) Director.--The Director shall consult with the 
        Advisory Group established under subsection (l) regarding--
                    ``(A) any agreement described in subsection 
                (e)(1)(B), before such agreement is entered into; and
                    ``(B) any initial or final determination under 
                subsection (e)(2) of whether an inconsistency referred 
                to in subsection (e)(1)(B) exists.
            ``(2) Secretary.--The Secretary shall consult with the 
        Advisory Group established under subsection (l) regarding 
        whether or not to stay preemption under subsection (e)(3).
    ``(h) Coordination Regarding Covered Agreements.--Before entering 
into any covered agreement, the United States or its representative 
shall coordinate with State insurance regulators as designated by the 
National Association of Insurance Commissioners to identify provisions 
in the covered agreement that provide for the recognition of prudential 
measures with respect to the business of insurance that are described 
in subsection (m)(1)(B).
    ``(i) Reports to Congress.--
            ``(1) Biennial reports.--The Director, in consultation with 
        the insurance commissioners or supervisors of the States, shall 
        submit a report during each Congress to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        on the financial state of the insurance industry, meaningful 
        trends in the industry, any actions taken by the Office 
        pursuant to subsection (e) (regarding preemption of 
        inconsistent State insurance measures), and any other 
        information as deemed relevant by the Director or as requested 
        by such Committees.
            ``(2) Reports on state insurance measures not preempted.--
        The Director shall submit a report to each of the Committees 
        referred to in paragraph (1) of this subsection regarding any 
        State insurance measure that would have been preempted but for 
        any stay of preemption under subsection (e)(3).
            ``(3) Other reports.--The Director shall submit such other 
        informal reports as the Director considers necessary or as are 
        requested by the Congress.
    ``(j) Use of Existing Resources.--The Office may employ personnel, 
facilities, and other Department of the Treasury resources available to 
the Secretary on the date of enactment of the Insurance Information Act 
of 2009 in carrying out this section, except as otherwise prohibited by 
law.
    ``(k) Retention of Existing Regulatory Authority.--Nothing in this 
section may be construed to establish a general supervisory or 
regulatory authority of the Office or the Department of the Treasury 
over the business of insurance.
    ``(l) Advisory Group.--
            ``(1) Establishment.--There is hereby established the 
        Advisory Group to the Office of Insurance Information (in this 
        subsection referred to as the `Advisory Group').
            ``(2) Membership.--The Advisory Group shall consist of no 
        more than 13 members who shall be appointed by the Secretary, 
        and shall include--
                    ``(A) State insurance commissioners or supervisors, 
                as nominated by the National Association of Insurance 
                Commissioners;
                    ``(B) a representative each of--
                            ``(i) State legislators, as nominated by 
                        the National Conference of State Legislatures;
                            ``(ii) the Department of Commerce;
                            ``(iii) the Federal Trade Commission;
                            ``(iv) the Office of the United States 
                        Trade Representative;
                            ``(v) the life insurance industry;
                            ``(vi) the property and casualty insurance 
                        industry;
                            ``(vii) the reinsurance industry; and
                            ``(viii) the insurance producer industry; 
                        and
                    ``(C) such other representatives of the insurance 
                industry, consumer groups, and other organizations as 
                the Secretary determines are appropriate.
            ``(3) Duties.--The sole functions of the Advisory Group 
        shall be to make recommendations to the Secretary and the 
        Director regarding the function of the Office under subsection 
        (c)(1)(B) and to consult with the Director and the Secretary 
        pursuant to subsection (g).
    ``(m) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Covered agreement.--The term `covered agreement' 
        means a written bilateral or multilateral recognition agreement 
        that--
                    ``(A) is entered into--
                            ``(i) between the United States and one or 
                        more foreign governments, authorities, or 
                        regulatory entities; and
                            ``(ii) after the date of the enactment of 
                        the Insurance Information Act of 2009; and
                    ``(B) provides for recognition of prudential 
                measures with respect to the business of insurance 
                that--
                            ``(i) adequately protect insurance 
                        consumers in the United States; and
                            ``(ii) are substantially equivalent to the 
                        regulation by the States of the comparable 
                        subject matter.
            ``(2) Non-united states insurer.--The term `non-United 
        States insurer' means an insurer, or reinsurer, that is 
        organized under the laws of a jurisdiction other than a State, 
        but does not include any United States branch of such an 
        insurer.
            ``(3) Office.--The term `Office' means the Office of 
        Insurance Information established by this section.
            ``(4) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.
            ``(5) State.--The term `State' means any of the 50 States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        United States Virgin Islands, Guam, American Samoa, the Trust 
        Territory of the Pacific Islands, the Commonwealth of the 
        Northern Mariana Islands, and any other territory of the United 
        States.
            ``(6) State insurance measure.--The term `State insurance 
        measure' means any State law, regulation, administrative 
        ruling, bulletin, guideline, or practice relating to or 
        affecting the provision of insurance or reinsurance.
            ``(7) United states insurer.--The term `United States 
        insurer' means--
                    ``(A) an insurer, or reinsurer, that is organized 
                under the laws of a State; or
                    ``(B) a United States branch of a non-United States 
                insurer.
    ``(n) Savings Provision.--Nothing in this section shall be 
construed to affect the development and coordination of United States 
international trade policy or the administration of the United States 
trade agreements program.
    ``(o) Authorization of Appropriations.--There are authorized to be 
appropriated for the Office such sums as may be necessary for each 
fiscal year.''.
    (c) Independence in Congressional Testimony and Recommendations.--
Section 111 of Public Law 93-495 (12 U.S.C. 250) is amended by 
inserting ``the Director of the Office of Insurance Information of the 
Department of the Treasury,'' after ``Office of Thrift Supervision,''.
    (d) Clerical Amendment.--The table of sections for subchapter I of 
chapter 3 of title 31, United States Code, is amended by striking the 
item relating to section 312 and inserting the following new items:

``Sec. 312. Terrorism and Financial Intelligence.
``Sec. 313. Office of Insurance Information.
``Sec. 314. Continuing in office.''.

SEC. 3. TREATMENT OF CERTAIN PROVISIONS.

    (a) Non-Severability of Certain Provisions .--If any provision of 
subsection (e) or (h) of section 313 of title 31, United States Code, 
as added by this Act, is declared or held invalid or unenforceable by 
any United States court, all provisions of each such subsection shall 
be treated and deemed invalid and shall have no force or effect of law.
    (b) Severability of Remainder.--Notwithstanding the invalidation of 
subsections (e) and (h) of section 313 of title 31, United States Code, 
as added by this Act, under subsection (a) of this section, the 
validity of the remainder of such section 313, and of the application 
of such provisions to other persons and circumstances, shall not be 
affected thereby.
                                 <all>