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Bill
Notes

H.R. 1478 — what changed

Policyholder Protection Act of 2015

From Introduced in House to Reported in House. 1 section amended and 1 removed between Introduced in House and Reported in House.

Sec. 2 Ensuring the protection of insurance policyholders

(a)
added Source of strength— Section 38A of the Federal Deposit Insurance Act (12 U.S.C. 1831o–1) is amended—

removed Section 38A of the Federal Deposit Insurance Act (12 U.S.C. 1831o–1) is amended—

(1)
renumbered was (3) by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and
(2)
renumbered was (4) by inserting after subsection (b) the following:

added “(c) Authority of State insurance regulator

added “(1) In general—The provisions of section 5(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(g)) shall apply to a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, and to any other company that is an insurance company and that directly or indirectly controls an insured depository institution, to the same extent as the provisions of that section apply to a bank holding company that is an insurance company.

added “(2) Rule of construction—Requiring a bank holding company that is an insurance company, a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, or any other company that is an insurance company and that directly or indirectly controls an insured depository institution to serve as a source of financial strength under this section shall be deemed an action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for purposes of section 5(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(g)).”

(b)
added Liquidation authority— The Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended—
(1)
added in section 203(e)(3) (12 U.S.C. 5383(e)(3)), by inserting “or rehabilitation” after “orderly liquidation” each place that term appears; and
(2)
added in section 204(d)(4) (12 U.S.C. 5384(d)(4)), by inserting before the semicolon at the end the following: “, except that, if the covered financial company or covered subsidiary is an insurance company or a subsidiary of an insurance company, the Corporation—

added “(A) shall promptly notify the State insurance authority for the insurance company of the intention to take such lien; and

added “(B) may only take such lien—

added “(i) to secure repayment of funds made available to such covered financial company or covered subsidiary; and

added “(ii) if the Corporation determines, after consultation with the State insurance authority, that such lien will not unduly impede or delay the liquidation or rehabilitation of the insurance company, or the recovery by its policyholders”

removed “(c) Authority of State Insurance Regulator

removed “(1) In general—The provisions of section 5(g) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(g)) shall apply to a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, and to any other company that is an insurance company and that directly or indirectly controls an insured depository institution, to the same extent as such section 5(g) applies to a bank holding company that is an insurance company.

removed “(2) Rule of construction—Requiring a bank holding company that is an insurance company, a savings and loan holding company that is an insurance company, an affiliate of an insured depository institution that is an insurance company, or any other company that is an insurance company and that directly or indirectly controls an insured depository institution to serve as a source of financial strength under this section shall be deemed an “action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary depository institution” for purposes of such section 5(g).”

Sec. 3 Liquidation authority

removed

removed The Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended—

(1)
removed in section 203(e)(3), by inserting “or rehabilitation” after “orderly liquidation” each place such term appears; and
(2)
removed in section 204(d)(4), by inserting before the semicolon the following:

removed “(A) shall promptly notify the State insurance authority for the insurance company of the intention to take such lien; and

removed “(B) may not take such lien if the State insurance authority notified under subparagraph (A) informs the Corporation, in writing, within 15 days of such notice, that the taking of the lien on the assets of such company would have a materially adverse effect on the policyholders of such company”