Section 1 Short title
This Act may be cited as the “Policyholder Protection Act of 2015”.
Policyholder Protection Act of 2015
A BILL
To provide for notice to, and input by, State insurance commissioners when requiring an insurance company to serve as a source of financial strength or when the Federal Deposit Insurance Corporation places a lien against an insurance company’s assets, and for other purposes.
Sec. 2 Source of strength
Section 38A of the Federal Deposit Insurance Act (12 U.S.C. 1831o–1) is amended—
by redesignating subsections (c), (d), and (e) as subsections (d), (e), and (f), respectively; and
by inserting after subsection (b) the following:
“(c) Authority of State Insurance Regulator
“(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.
“(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
The Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301 et seq.) is amended—
in section 203(e)(3), by inserting “or rehabilitation” after “orderly liquidation” each place such term appears; and
in section 204(d)(4), by inserting before the semicolon the following:
“(A) shall promptly notify the State insurance authority for the insurance company of the intention to take such lien; and
“(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”