[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2503 Introduced in House (IH)]
1st Session
H. R. 2503
To clarify the authority of States to regulate national bank insurance
activity, to limit the authority of the Comptroller of the Currency to
authorize national banks to engage in new insurance activities, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 18, 1995
Mr. Solomon (for himself, Mr. Burton, and Mr. McInnis) introduced the
following bill; which was referred to the Committee on Banking and
Financial Services
_______________________________________________________________________
A BILL
To clarify the authority of States to regulate national bank insurance
activity, to limit the authority of the Comptroller of the Currency to
authorize national banks to engage in new insurance activities, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bank Insurance Regulation Act of
1995''.
SEC. 2. AUTHORITY OF THE COMPTROLLER OF THE CURRENCY.
(a) State Supervision.--Chapter 1 of Title LXII of the Revised
Statutes of the United States (12 U.S.C. 21 et seq.) is amended--
(1) by redesignating section 5136A as section 5136B; and
(2) by inserting after section 5136 (12 U.S.C. 24) the
following new section:
``SEC. 5136A. STATE SUPERVISION OF INSURANCE.
``(a) State Licensing of Insurance Activities.--
``(1) In general.--Subject to paragraph (2), no provision
of section 5136, any other section of this title, or section 13
of the Federal Reserve Act may be construed as limiting or
otherwise impairing the authority of any State to regulate--
``(A) the extent to which, and the manner in which,
a national bank may engage within the State in
insurance activities pursuant to section 13 of the
Federal Reserve Act;
``(B) the manner in which a national bank may
engage within the State in insurance activities
pursuant to section 5136(b)(2)(B) of the Revised
Statutes of the United States; or
``(C) the manner in which a national bank may
engage within the State in insurance activities
pursuant to section 5136(b)(2)(A) of the Revised
Statutes of the United States through, and limited to,
consumer disclosure requirements or licensing
requirements, procedures, and qualifications as
described in paragraph (2)(C).
``(2) Prohibition on state discrimination against national
banks.--Notwithstanding paragraph (1)--
``(A) Providing insurance as agent or broker.--No
State may impose any insurance regulatory requirement
relating to providing insurance as an agent or broker
that treats a national bank differently than all other
persons who are authorized to provide insurance as
agents or brokers in such State, unless there is a
legitimate and reasonable State regulatory purpose for
the requirement for which there is no less restrictive
alternative.
``(B) Providing insurance as principal, agent, or
broker.--
``(i) No State may impose on a national
bank any insurance regulatory requirement
relating to providing insurance as principal,
agent, or broker that treats the national bank
more restrictively than any other depository
institution (as defined in section 3(c)(1) of
the Federal Deposit Insurance Act) operating in
the State.
``(ii) Nothing in this subparagraph shall
affect the validity of a State law that--
``(I) prevents a national bank from
engaging in insurance activities within
the State to as great an extent as a
savings association (as defined in
section 3(b)(1) of the Federal Deposit
Insurance Act) may engage in such
activities within the State; and
``(II) was in effect on June 1,
1995.
``(C) Licensing qualifications and procedures.--No
State may discriminate against a national bank with
respect to the following requirements, procedures, and
qualifications as such requirements, procedures, and
qualifications relate to the authority of the national
bank to provide insurance in such State as an agent or
broker:
``(i) License application and processing
procedures.
``(ii) Character, experience, and
educational qualifications for licenses.
``(iii) Testing and examination
requirements for licenses.
``(iv) Fee requirements for licenses.
``(v) Continuing education requirements.
``(vi) Types of licenses required.
``(vii) Standards and requirements for
renewal of licenses.
``(b) Authority of the Comptroller of the Currency.--A national
bank may not provide insurance as a principal, agent, or broker except
as specifically provided in this section, the paragraph designated as
the `Seventh' of section 5136(a) of this chapter, or section 5136(b) of
this chapter, or section 13 of the Federal Reserve Act.
``(c) Preservation of Federally Authorized Bank Activities in
Permissive States.--No provision of this section may be construed as
affecting the authority, pursuant to section 13 of the Federal Reserve
Act, of a national bank to act as insurance agent or broker consistent
with State law.
``(d) Preservation of National Bank Authority Consistent With State
Bank Authority.--Except as provided in subsection (a)(2)(B), no
provision of this section or section 5136(b)(1) shall have the effect
of enabling a State to deny a national bank authority that the bank
otherwise possesses to provide a product in a State, including as
agent, broker, or principal, where the bank is not providing the
product in the State other than to an extent and in a manner that a
State bank (as defined in section 3(a)(2) of the Federal Deposit
Insurance Act) is permitted by the law of the State to provide such
product, except that nothing in this subsection shall be construed as
granting any new authority to a national bank to provide any product
because the law of the State has authorized State banks to provide such
product.
``(e) Definitions.--For purposes of this section, section 5136, and
section 13 of the Federal Reserve Act, the following definitions shall
apply:
``(1) Insurance.--The term `insurance' means any product
defined or regulated as insurance, consistent with the relevant
State insurance law, by the insurance regulatory authority of
the State in which such product is sold, solicited, or
underwritten, including any annuity contract the income on
which is tax deferred under section 72 of the Internal Revenue
Code of 1986.
``(2) State.--The term `State' has the same meaning as in
section 3(a)(3) of the Federal Deposit Insurance Act.
``(f) Grandfather Provision.--
``(1) In general.--Any national bank which, before January
1, 1995, was providing insurance as agent or broker under
section 13 of the Federal Reserve Act may provide insurance as
an agent or broker under such section, to no less extent and in
a no more restrictive manner as such bank was providing
insurance as agent or broker under such section on January 1,
1995, notwithstanding contrary State law, subject to final,
controlling judgment in a pending action.
``(2) Termination.--This subsection shall cease to apply
with respect to any national bank described in paragraph (1)
if--
``(A) the bank is subject to an acquisition,
merger, consolidation, or change in control, other than
a transaction to which section 18(c)(12) of the Federal
Deposit Insurance Act applies; or
``(B) any bank holding company which directly or
indirectly controls such bank is subject to an
acquisition, merger, consolidation, or change in
control, other than a transaction in which the
beneficial ownership of such bank holding company or of
a bank holding company which controls such company does
not change as a result of the transaction.''.
(b) Interpretive Authority of the Comptroller of the Currency.--
Section 5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended--
(1) by striking ``Upon duly making and filing articles of
association'' and inserting ``(a) In General.--Upon duly making
and filing articles of association''; and
(2) by adding at the end the following new subsection:
``(b) Interpretive Authority of the Comptroller of the Currency.--
``(1) In general.--Subject to paragraph (2), it shall not
be incidental to banking for a national bank to provide
insurance as a principal, agent, or broker.
``(2) Scope of application.--Notwithstanding paragraph (1),
it shall be incidental to banking for a national bank to engage
in the following activities:
``(A) Providing, as an agent or broker, any annuity
contract the income on which is tax deferred under
section 72 of the Internal Revenue Code of 1986.
``(B) Providing, as a principal, agent, or broker,
any type of insurance, other than an annuity or title
insurance, which the Comptroller of the Currency
specifically determined, before May 1, 1995, to be
incidental to banking with respect to national
banks.''.
(c) Technical and Conforming Amendments.--
(1) The 11th undesignated paragraph of section 13 of the
Federal Reserve Act (12 U.S.C. 92) is amended by inserting ``,
and subject to section 5136A of the Revised Statutes of the
United States,'' after ``the laws of the United States''.
(2) The paragraph designated the ``Seventh'' of section
5136 of the Revised Statutes of the United States (12 U.S.C.
24) is amended by striking ``subject to law,'' and inserting
``subject to subsection (b), section 5136A, and any other
provision of law,''.
(3) Section 1306 of title 18, United States Code, is
amended by striking ``5136A'' and inserting ``5136B''.
(d) Clerical Amendment.--The table of sections for chapter 1 of
title LXII of the Revised Statutes of the United States is amended--
(1) by redesignating the item relating to section 5136A as
section 5136B; and
(2) by inserting after the item relating to section 5136
the following new item:
``5136A. State supervision of insurance.''.
(e) Preservation of Bank Holding Company Insurance Authority.--No
provision of this section, and no amendment made by this section to any
other provision of law, may be construed as affecting the authority of
a bank holding company to engage in insurance agency activity pursuant
to section 4(c) of the Bank Holding Company Act of 1956.
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