[Congressional Record (Bound Edition), Volume 160 (2014), Part 7]
[Senate]
[Pages 9436-9437]
[From the U.S. Government Publishing Office, www.gpo.gov]




         INSURANCE CAPITAL STANDARDS CLARIFICATION ACT OF 2014

  Ms. STABENOW. I ask unanimous consent that the committee on banking 
be discharged from further consideration of S. 2270 and the Senate 
proceed to its immediate consideration.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 2270) to clarify the application of certain 
     leverage and risk-based requirements under the Dodd-Frank 
     Wall Street Reform and Consumer Protection Act.

  There being no objection, the Senate proceeded to consider the bill.
  Ms. STABENOW. Madam President, I ask unanimous consent that the 
Collins substitute amendment be agreed to; the bill, as amended, be 
read a third time and passed; and the motion to reconsider be 
considered made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 3229), in the nature of a substitute, was agreed 
to, as follows:

                (Purpose: In the nature of a substitute)

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Insurance Capital Standards 
     Clarification Act of 2014''.

     SEC. 2. 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--
       (1) in subsection (a), by adding at the end the following:
       ``(4) Business of insurance.--The term `business of 
     insurance' has the same meaning as in section 1002(3).
       ``(5) 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).
       ``(6) 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

[[Page 9437]]

     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--
       ``(A) such person acts in its capacity as a regulated 
     insurance entity; and
       ``(B) the Board of Governors does not determine that the 
     capital requirements in a specific foreign jurisdiction are 
     inadequate.
       ``(7) Capacity as a regulated insurance entity.--The term 
     `capacity as a regulated insurance entity'--
       ``(A) 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
       ``(B) 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
       (2) by adding at the end the following new subsection:
       ``(c) Clarification.--
       ``(1) 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.
       ``(2) 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.
       ``(3) Rule of construction on accounting principles.--
       ``(A) In general.--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 that is engaged in 
     the business of insurance that files financial statements 
     with a State insurance regulator or the National Association 
     of Insurance Commissioners utilizing only Statutory 
     Accounting Principles in accordance with State law, shall not 
     be required by the Board under the authority of this section 
     or the authority of the Home Owners' Loan Act to prepare such 
     financial statements in accordance with Generally Accepted 
     Accounting Principles.
       ``(B) Preservation of authority.--Nothing in subparagraph 
     (A) shall limit the authority of the Board under any other 
     applicable provision of law to conduct any regulatory or 
     supervisory activity of a depository institution holding 
     company or non-bank financial company supervised by the Board 
     of Governors, including the collection or reporting of any 
     information on an entity or group-wide basis. Nothing in this 
     paragraph shall excuse the Board from its obligations to 
     comply with section 161(a) of the Dodd-Frank Wall Street 
     Reform and Consumer Protection Act (12 U.S.C. 5361(a)) and 
     section 10(b)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(b)(2)), as appropriate.''.

  The bill (S. 2270), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed.

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