Sec. 4. Solvency, capital, and accounting requirements for insurance-based savings and loan holding companies
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Section 10(g) of the Home Owners’ Loan Act ( 12 U.S.C. 1467a(g) ) is amended by adding at the end the following: Notwithstanding any other provision of this section, in establishing capital standards required for a savings and loan holding company that is an insurance company or that has one or more subsidiaries that are insurance companies, the Board shall— with respect to the insurance company, adhere to the regulatory accounting practices and procedures applicable to, and the capital structure of, such company; with respect to the insurance company, utilize the governing State law capital requirements for insurers; and not require any insurance company to comply with accounting standards, including generally accepted accounting principles, that are different than those accounting standards the company is required to comply with by the company’s State regulator.
Any insurance company, insurance affiliate, or insurance subsidiary in compliance with applicable risk-based capital standards established under State law shall be presumed to satisfy any capital requirements of this Act. The Board may, on a case-by-case basis on the record, determine that the presumption in clause
(i)should not apply, provided that the Board first establishes through rulemaking the general procedures and standards to be utilized for such proceedings. Where the Board makes a determination under clause
(ii)that the presumption should not apply to a company, the requirements of subparagraphs (A), (C), and
(D)remain applicable in establishing capital rules for such company. No capital requirements under this Act for a company described under subparagraph
(A)shall apply unless the Board— carries out a cost-benefit analysis of the application of those requirements specific to a company described under subparagraph (A), including soliciting and reviewing public comment of the analysis prior to any final rulemaking, and the Board determines that the benefits of applying the requirements outweigh the cost; and carries out a quantitative impact study of the application of those requirements specific to a company described under subparagraph (A), including soliciting and reviewing public comment of the study prior to any final rulemaking, and only apply the requirements if the Board determines that the study shows the requirements are appropriate. Any rulemaking setting capital rules for companies described in subparagraph
(A)shall separately incorporate and reflect the requirements provided for under subparagraphs (A), (B), and (C). .
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Sec. 4
Solvency, capital, and accounting requirements for insurance-based savings and loan holding companies
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