Sec. 3. Establishment of United States Insurance Representative
1,533 words·~7 min read·
/bill/119/hr/7130/ih/section-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Title 31, United States Code, is amended— in the table of sections for subchapter I of chapter 3, by striking Federal Insurance Office and inserting United States Insurance Representative ; and by amending section 313 to read as follows: Not later than 1 year after the date of the enactment of this section, the Secretary shall, for the purpose of carrying out this section— appoint an United States Insurance Representative; and hire and retain individuals with expertise in matters related to insurance.
The United States Insurance Representative shall— coordinate Federal efforts and develop Federal policy on prudential aspects of international insurance matters; represent the United States Department of the Treasury, as appropriate, in the International Association of Insurance Supervisors (or a successor entity); assist the Secretary in negotiating covered agreements; determine whether State insurance measures are preempted by covered agreements; assist the Secretary in administering the Terrorism Insurance Program established in the Department of the Treasury under the Terrorism Risk Insurance Act of 2002 ( 15 U.S.C. 6701 note); consult with the States (including State insurance regulators) with respect to insurance matters of national importance and prudential insurance matters of international importance; and advise the Secretary on prudential international insurance policy issues.
The authority of the United States Insurance Representative shall extend to prudential aspects of all lines of insurance offered in the United States, except— health insurance, as determined by the Secretary in coordination with the Secretary of Health and Human Services based on section 2791 of the Public Health Service Act ( 42 U.S.C. 300gg–91 ); long-term care insurance, except long-term care insurance that is included with life or annuity insurance components, as determined by the Secretary in coordination with the Secretary of Health and Human Services, and in the case of long-term care insurance that is included with such components, the Secretary shall coordinate with the Secretary of Health and Human Services in performing the functions under this paragraph; and crop insurance, as established by the Federal Crop Insurance Act (7 U.S.C. 1501 et seq).
A State insurance measure shall be preempted pursuant to this paragraph or section 314 if, and only to the extent that the United States Insurance Representative determines, in accordance with this paragraph, that the measure— results in less favorable treatment of a non-United States insurer domiciled in a foreign jurisdiction that is subject to a covered agreement than a United States insurer domiciled, licensed, or otherwise admitted in that State; and is inconsistent with a covered agreement.
Before making any determination under paragraph (1), the United States Insurance Representative shall— notify and consult with the appropriate State regarding any potential inconsistency or preemption; notify and consult with the United States Trade Representative regarding any potential inconsistency or preemption; publish in the Federal Register a notice of the potential inconsistency or preemption, including a description of each State insurance measure at issue and any applicable covered agreement; provide interested parties a reasonable opportunity to submit written comments to the United States Insurance Representative; and consider any comments received.
For purposes of this subsection, any determination of the United States Insurance Representative regarding State insurance measures, and any preemption under clause
(i)as a result of such determination, shall be limited to the subject matter contained within the covered agreement involved and shall achieve a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under State insurance or reinsurance regulation. Upon making any determination under paragraph (1), the United States Insurance Representative shall— notify the appropriate State of the determination and the extent of the inconsistency; establish a reasonable period of time, which shall not be less than 30 days, before the determination shall become effective; and notify the Committees on Financial Services and Ways and Means of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Finance of the Senate. Upon the conclusion of the period referred to in paragraph (2)(C)(ii), if the basis for such determination still exists, the determination shall become effective and the United States Insurance Representative shall— publish a notice in the Federal Register that the preemption has become effective, as well as the effective date; and notify the appropriate State of the preemption of the State measure. No State may enforce a State insurance measure that has been preempted under this subparagraph. Determinations of under subsection
(d)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), except that in any action for judicial review of a determination of inconsistency, the court shall determine the matter de novo. The Secretary may issue orders, regulations, policies, and procedures to implement this paragraph. The United States Insurance Representative shall consult with State insurance regulators, individually or collectively, to the extent the United States Insurance Representative determines appropriate, in carrying out this paragraph. Nothing in this paragraph or section 314 shall be construed to— alter, amend, or limit any provision of the Consumer Financial Protection Agency Act of 2010; affect the preemption of any State insurance measure otherwise inconsistent with and preempted by Federal law; preempt— any State insurance measure that governs any insurer’s rates, premiums, underwriting, or sales practices; any State coverage requirements for insurance; the application of the antitrust laws of any State to the business of insurance; or any State insurance measure governing the capital or solvency of an insurer, except to the extent that such State insurance measure results in less favorable treatment of a non-United States insurer than a United States insurer; provide the United States Insurance Representative or the Department of the Treasury with general supervisory or regulatory authority over the business of insurance; limit the authority of any Federal financial regulatory agency, including the authority to develop and coordinate policy, negotiate, and enter into agreements with foreign governments, authorities, regulators, and multinational regulatory committees and to preempt State measures to affect uniformity with international regulatory agreements; or affect the authority of the Office of the United States Trade Representative pursuant to section 141 of the Trade Act of 1974 ( 19 U.S.C. 2171 ) or any other provision of law, including authority over the development and coordination of United States international trade policy and the administration of the United States trade agreements program. Beginning on the date that is 2 years after the date of the enactment of this paragraph, and annually thereafter, the United States Insurance Representative shall submit a report to the President and to the Committees on Financial Services and Ways and Means of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Finance of the Senate on any actions taken during the preceding 1-year period by the Representative pursuant to subsection (d). Not later than 2 years after the date of the enactment of this paragraph, the United States Insurance Representative shall conduct a study and submit a report to the Congress that describes— any international coordination of insurance regulation; and the international competitiveness of United States insurers. To carry out this paragraph, the United States Insurance Representative may use personnel, facilities, and any other resource of the Department of the Treasury that are available to the Secretary. In this paragraph and section 314, the following definitions shall apply: The term covered agreement means a written bilateral or multilateral agreement regarding prudential measures with respect to the business of insurance or reinsurance that— is entered into between the United States and one or more foreign governments, authorities, or regulatory entities; and relates to the recognition of prudential measures with respect to the business of insurance or reinsurance that achieves a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under State insurance or reinsurance regulation. The term insurer means any person engaged in the business of insurance, including reinsurance. The term Federal financial regulatory agency means the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, or the National Credit Union Administration. The term non-United States insurer means an insurer 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. The term State insurance measure means any State law, regulation, administrative ruling, bulletin, guideline, or practice relating to or affecting prudential measures applicable to insurance or reinsurance. The term State insurance regulator means any State regulatory authority responsible for the supervision of insurers. The term substantially equivalent to the level of protection achieved means the prudential measures of a foreign government, authority, or regulatory entity achieve a similar outcome in consumer protection as the outcome achieved under State insurance or reinsurance regulation. The term United States insurer means— an insurer that is organized under the laws of a State; or a United States branch of a non-United States insurer. .
Connectionstraces to 3
1 reference not yet in our index
- 42 USC 300gg–91
Citation graph
cites case law
Sec. 3
Establishment of United States Insurance Representative
Cite42 USC 300gg–91
Cites 4Cited by 0 across 0 sources