[Congressional Record Volume 164, Number 30 (Thursday, February 15, 2018)]
[Extensions of Remarks]
[Pages E194-E195]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCTION OF THE STATE INSURANCE REGULATION PRESERVATION ACT

                                 ______
                                 

                         HON. KEITH J. ROTHFUS

                            of pennsylvania

                    in the house of representatives

                      Thursday, February 15, 2018

  Mr. ROTHFUS. Mr. Speaker, together with my colleague Representative 
Beatty, I am pleased to introduce today the State Insurance Regulation 
Preservation Act. This legislation will ensure that the regulation of 
insurance savings and loan holding companies reflects our state system 
of insurance regulation while protecting policyholders and depositors.
  The Dodd-Frank Act brought insurance savings and loan holding 
companies under Federal Reserve Supervision for the first time. As 
such, these insurance companies are currently regulated by both the 
states, and the Federal Reserve. Consistent with the Dodd-Frank Act's 
reaffirmation that insurance should be regulated by the states, our 
legislation remedies the current structural inefficiency by allowing 
the Federal Reserve to ensure that the holding company is well 
capitalized, while leaving the day-to-day regulation to the states.
  The bill accomplishes this providing that insurance savings and loan 
holding companies that meet state and federal capital standards are 
regulated day-to-day by the states. The Federal Reserve would remain 
the backstop regulator for these companies and would retain the ability 
to step in if capital levels were insufficient, and also would retain 
general emergency authority to step as the day-to-day regulator. The 
thrifts in these companies would continue to be regulated by the Office 
of the Comptroller of the Currency, and Federal Reserve would retain 
the ability to examine material subsidiaries.
  This legislation is important and helpful because Dodd-Frank did not 
provide specific instructions on how the Federal Reserve supervision 
should complement state insurance supervision for companies that are 
subject to both. We believe this legislation would create greater 
regulatory efficiency, without constraining the Federal Reserve's 
ability to fulfill its statutory mandate to protect the safety and 
soundness of these institutions.
  As we developed this bill, both members of Congress and regulators 
identified potential improvements to ensure that the objectives of this 
bill are met. In particular, we are committed to preventing gaps in 
regulation, and ensuring that the Federal Reserve has adequate 
information and authority to step in when needed. Our objective is to 
pass a bill that embodies sound public policy and enjoys broad 
bipartisan support. We look forward to continued dialogue and hope our 
colleagues can support this needed legislation.

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