International Insurance Standards Act of 2019

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4592 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 4592

To preserve the State-based system of insurance regulation and provide 
   greater oversight of and transparency on international insurance 
          standards setting processes, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2019

  Mr. Heck (for himself and Mr. Budd) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To preserve the State-based system of insurance regulation and provide 
   greater oversight of and transparency on international insurance 
          standards setting processes, 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 ``International Insurance Standards 
Act of 2019''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds the following:
            (1) The State-based system for insurance regulation in the 
        United States has served American consumers well for more than 
        150 years and has fostered an open and competitive marketplace 
        with a diversity of insurance products to the benefit of 
        policyholders and consumers.
            (2) Protecting policyholders by regulating to ensure an 
        insurer's ability to pay claims has been the hallmark of the 
        successful United States system and should be the paramount 
        objective of domestic prudential regulation and emerging 
        international standards.
            (3) The Dodd-Frank Wall Street Reform and Consumer 
        Protection Act (Public Law 111-203) reaffirmed the State-based 
        insurance regulatory system.

SEC. 3. REQUIREMENT THAT INSURANCE STANDARDS REFLECT UNITED STATES 
              POLICY.

    (a) Requirement.--
            (1) In general.--Parties representing the Federal 
        Government in any international regulatory, standard-setting, 
        or supervisory forum or in any negotiations of any 
        international agreements relating to the prudential aspects of 
        insurance shall not agree to, accede to, accept, or establish 
        any proposed agreement or standard if such parties determine 
        that the United States system of insurance regulation would not 
        satisfy such proposals.
            (2) Inapplicability.--Paragraph (1) shall not apply to any 
        forum or negotiations relating to a covered agreement (as such 
        term is defined in section 313(r) of title 31, United States 
        Code).
    (b) Federal Insurance Office Functions.--Subparagraph (E) of 
section 313(c)(1) of title 31, United States Code, is amended by 
inserting ``Federal Government'' after ``United States''.
    (c) Negotiations; Regulatory Dialogues.--
            (1) Negotiations.--Nothing in this section shall be 
        construed to prevent participation in negotiations of any 
        proposed agreement or standard.
            (2) Regulatory dialogues.--Nothing in this section shall 
        apply to regulatory dialogues not intended to create standards 
        or result in an agreement not creating standards relating to 
        the prudential aspects of insurance.

SEC. 4. STATE INSURANCE REGULATOR INVOLVEMENT IN INTERNATIONAL STANDARD 
              SETTING.

    In developing international insurance standards or agreements 
pursuant to section 3, and throughout the negotiations of such 
standards or agreements, and in regulatory dialogues, parties 
representing the Federal Government shall, on matters related to 
insurance, closely consult, coordinate with, and seek to include in 
such meetings State insurance commissioners or, at the option of the 
State insurance commissioners, designees of the insurance commissioners 
acting at their direction.

SEC. 5. CONSULTATION WITH CONGRESS.

    (a) Requirement.--Parties representing the Federal Government with 
respect to any agreement under section 3 shall provide written notice 
to and consult with the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, and any other relevant committees of 
jurisdiction--
            (1) before initiating negotiations to enter into the 
        agreement, regarding--
                    (A) the intention of the United States to 
                participate in or enter into such negotiations; and
                    (B) the nature and objectives of the negotiations; 
                and
            (2) during negotiations to enter into the agreement, 
        regarding--
                    (A) the nature and objectives of the negotiations;
                    (B) the implementation of the agreement, including 
                how it is consistent with and does not materially 
                differ from or otherwise affect Federal or State laws 
                or regulations;
                    (C) the impact on the competitiveness of United 
                States insurers; and
                    (D) the impact on United States consumers.
    (b) Consultation With Federal Advisory Committee on Insurance.--
Before entering into an agreement under section 3, the Secretary of the 
Treasury shall seek to consult with the Federal Advisory Committee on 
Insurance formed pursuant to section 313(h) of title 31, United States 
Code.

SEC. 6. REPORT TO CONGRESS ON INTERNATIONAL INSURANCE AGREEMENTS.

    Before entering into an agreement under section 3, parties 
representing the Federal Government shall submit to the appropriate 
congressional committees and leadership a report that describes--
            (1) the implementation of the agreement, including how it 
        is consistent with and does not materially differ from or 
        otherwise affect Federal or State laws or regulations;
            (2) the impact on the competitiveness of United States 
        insurers; and
            (3) the impact on United States consumers.

SEC. 7. INAPPLICABILITY TO TRADE AGREEMENTS.

    This Act shall not apply to any forum or negotiations related to a 
trade agreement.
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