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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7130 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7130
To eliminate the Federal Insurance Office of the Department of the
Treasury and to establish a United States Insurance Representative
within the Department of the Treasury, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2026
Mr. Downing (for himself, Mr. Fitzgerald, and Mr. Ogles) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To eliminate the Federal Insurance Office of the Department of the
Treasury and to establish a United States Insurance Representative
within the Department of the Treasury, 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 ``McCarran-Ferguson Restoration Act''.
SEC. 2. ELIMINATION OF FEDERAL INSURANCE OFFICE.
(a) In General.--The Federal Insurance Office of the Department of
the Treasury, and the position of the Director of the Federal Insurance
Office, are hereby eliminated.
(b) Treasury Authority.--This section may not be construed to
repeal or otherwise limit any authority of the Secretary of the
Treasury with respect matters relating to insurance.
SEC. 3. ESTABLISHMENT OF UNITED STATES INSURANCE REPRESENTATIVE.
Title 31, United States Code, is amended--
(1) in the table of sections for subchapter I of chapter 3,
by striking ``Federal Insurance Office'' and inserting ``United
States Insurance Representative''; and
(2) by amending section 313 to read as follows:
``Sec. 313. United States Insurance Representative
``(a) In General.--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--
``(1) appoint an United States Insurance Representative;
and
``(2) hire and retain individuals with expertise in matters
related to insurance.
``(b) Duties.--The United States Insurance Representative shall--
``(1) coordinate Federal efforts and develop Federal policy
on prudential aspects of international insurance matters;
``(2) represent the United States Department of the
Treasury, as appropriate, in the International Association of
Insurance Supervisors (or a successor entity);
``(3) assist the Secretary in negotiating covered
agreements;
``(4) determine whether State insurance measures are
preempted by covered agreements;
``(5) 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);
``(6) consult with the States (including State insurance
regulators) with respect to insurance matters of national
importance and prudential insurance matters of international
importance; and
``(7) advise the Secretary on prudential international
insurance policy issues.
``(c) Scope.--The authority of the United States Insurance
Representative shall extend to prudential aspects of all lines of
insurance offered in the United States, except--
``(1) 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);
``(2) 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
``(3) crop insurance, as established by the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq).
``(d) Preemption of State Insurance Measures.--
``(1) Standard.--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--
``(A) 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
``(B) is inconsistent with a covered agreement.
``(2) Determination.--
``(A) Notice of potential inconsistency.--Before
making any determination under paragraph (1), the
United States Insurance Representative shall--
``(i) notify and consult with the
appropriate State regarding any potential
inconsistency or preemption;
``(ii) notify and consult with the United
States Trade Representative regarding any
potential inconsistency or preemption;
``(iii) 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;
``(iv) provide interested parties a
reasonable opportunity to submit written
comments to the United States Insurance
Representative; and
``(v) consider any comments received.
``(B) Scope of review.--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.
``(C) Notice of determination of inconsistency.--
Upon making any determination under paragraph (1), the
United States Insurance Representative shall--
``(i) notify the appropriate State of the
determination and the extent of the
inconsistency;
``(ii) establish a reasonable period of
time, which shall not be less than 30 days,
before the determination shall become
effective; and
``(iii) 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.
``(3) Notice of effectiveness.--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--
``(A) publish a notice in the Federal Register that
the preemption has become effective, as well as the
effective date; and
``(B) notify the appropriate State of the
preemption of the State measure.
``(4) Limitation.--No State may enforce a State insurance
measure that has been preempted under this subparagraph.
``(e) Applicability of Administrative Procedures Act.--
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.
``(f) Regulations, Policies, and Procedures.--The Secretary may
issue orders, regulations, policies, and procedures to implement this
paragraph.
``(g) Consultation.--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.
``(h) Rules of Construction.--Nothing in this paragraph or section
314 shall be construed to--
``(1) alter, amend, or limit any provision of the Consumer
Financial Protection Agency Act of 2010;
``(2) affect the preemption of any State insurance measure
otherwise inconsistent with and preempted by Federal law;
``(3) preempt--
``(A) any State insurance measure that governs any
insurer's rates, premiums, underwriting, or sales
practices;
``(B) any State coverage requirements for
insurance;
``(C) the application of the antitrust laws of any
State to the business of insurance; or
``(D) 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;
``(4) provide the United States Insurance Representative or
the Department of the Treasury with general supervisory or
regulatory authority over the business of insurance;
``(5) 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
``(6) 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.
``(i) Annual Report to Congress.--
``(1) Preemption reports.--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).
``(2) International insurance reports.--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--
``(A) any international coordination of insurance
regulation; and
``(B) the international competitiveness of United
States insurers.
``(j) Use of Existing Resources.--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.
``(k) Definitions.--In this paragraph and section 314, the
following definitions shall apply:
``(1) Covered agreement.--The term `covered agreement'
means a written bilateral or multilateral agreement regarding
prudential measures with respect to the business of insurance
or reinsurance that--
``(A) is entered into between the United States and
one or more foreign governments, authorities, or
regulatory entities; and
``(B) 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.
``(2) Insurer.--The term `insurer' means any person engaged
in the business of insurance, including reinsurance.
``(3) Federal financial regulatory agency.--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.
``(4) Non-united states insurer.--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.
``(5) State insurance measure.--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.
``(6) State insurance regulator.--The term `State insurance
regulator' means any State regulatory authority responsible for
the supervision of insurers.
``(7) Substantially equivalent to the level of protection
achieved.--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.
``(8) United states insurer.--The term `United States
insurer' means--
``(A) an insurer that is organized under the laws
of a State; or
``(B) a United States branch of a non-United States
insurer.''.
SEC. 4. RELATED AMENDMENTS TO ELIMINATION OF FEDERAL INSURANCE OFFICE.
(a) Dodd-Frank Wall Street Reform and Consumer Protection Act
Amendments.--The Dodd-Frank Wall Street Reform and Consumer Protection
Act (12 U.S.C. 5301 et seq.) is amended--
(1) in section 165(i) (12 U.S.C. 5365(i))--
(A) in paragraph (1)(A), by striking ``and the
Federal Insurance Office'' and inserting ``and the
Secretary of the Treasury''; and
(B) in paragraph (2)(C), in the matter preceding
clause (i), by striking ``and the Federal Insurance
Office'' and inserting ``and the Secretary of the
Treasury''; and
(2) in section 203(a)(1)(C) (12 U.S.C. 5383(a)(1)(C)), by
striking ``Director of the Federal Insurance Office'' in each
place it appears and inserting ``United States Insurance
Representative''.
(b) Economic Growth, Regulatory Relief, and Consumer Protection Act
Amendments.--Section 211(a) of the Economic Growth, Regulatory Relief,
and Consumer Protection Act (31 U.S.C. 313 note) is amended--
(1) in paragraph (1), by striking ``the Secretary of the
Treasury, Board of Governors of the Federal Reserve System, and
Director of the Federal Insurance Office'' and inserting the
following: ``the Secretary of the Treasury and the Board of
Governors of the Federal Reserve System''; and
(2) in paragraph (2), by striking ``the Secretary of the
Treasury, the Board of Governors of the Federal Reserve System,
and the Director of the Federal Insurance Office'' each place
that term occurs and inserting the following: ``the Secretary
of the Treasury and the Board of Governors of the Federal
Reserve System''.
SEC. 5. FINANCIAL STABILITY OVERSIGHT COUNCIL MEMBERSHIP.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (12
U.S.C. 5301 et seq.) is amended--
(1) in section 111 (12 U.S.C. 5321)--
(A) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (I), by
striking ``and'' at the end;
(II) in subparagraph (J), by
striking the period at the end and
inserting ``; and''; and
(III) by adding at the end the
following:
``(K) a State insurance commissioner appointed by
the President, by and with the advice and consent of
the Senate, as described in paragraph (4).'';
(ii) in paragraph (2)--
(I) in subparagraph (B), to read as
follows:
``(B) the United States Insurance
Representative;'';
(II) by striking subparagraph (C);
and
(III) by redesignating
subparagraphs (D) and (E) as
subparagraphs (C) and (D),
respectively; and
(iii) by adding at the end the following:
``(4) Appointment of state insurance commissioner.--
``(A) In general.--Before making any appointments
pursuant to paragraph (1)(K), the President shall
request a list of recommended candidates from the
States through the National Association of Insurance
Commissioners, which shall not be binding on the
President.
``(B) Failure of list submission.--If the National
Association of Insurance Commissioners fails to submit
a list of recommendations not later than 15 business
days after the date of the request, the President may
make the requisite appointment without considering the
views of the National Association of Insurance
Commissioners.''; and
(B) in subsection (c)--
(i) in paragraph (1)--
(I) by inserting ``, the State
insurance commissioner shall serve a
term of 4 years'' after ``6 years'';
and
(II) by striking ``(C), (D), and
(E)'' and inserting ``(C) and (D)'';
and
(ii) by adding at the end the following:
``(5) Acting state insurance commissioner may serve.--
``(A) In general.--Notwithstanding section 3345 of
title 5, United States Code, in the event of a vacancy
of the State insurance commissioner of the Council or
during the absence or disability of the State insurance
commissioner of the Council, an acting State insurance
commissioner of the Council shall serve as a nonvoting
member of the Council until a successor is appointed
and confirmed.
``(B) Selection of acting state insurance
commissioner.--The acting State insurance commissioner
described in subparagraph (A) shall be selected through
process determined by the National Association of
Insurance Commissioners.
``(6) Term of state insurance commissioner.--
Notwithstanding paragraph (1), if a successor to the State
insurance commissioner of the Council is not appointed and
confirmed by the end of the term of service of the
commissioner, such member may continue to serve until the
earlier of--
``(A) 18 months after the date on which the term of
service ends; or
``(B) the date on which a successor to the
commissioner is appointed and confirmed.'', and
(2) in section 112 (12 U.S.C. 5322)--
(A) in subsection (a)(2)(A), by striking ``member
agencies, other Federal and State financial regulatory
agencies, the Federal Insurance Office'' and inserting
the following: ``member agencies and other Federal and
State financial regulatory agencies''; and
(B) in subsection (d)--
(i) in paragraph (1), in the matter
preceding subparagraph (A), by striking ``the
Office of Financial Research, member agencies,
and the Federal Insurance Office'' and
inserting ``the Office of Financial Research
and member agencies''; and
(ii) in paragraph (2), by striking ``, any
member agency, and the Federal Insurance
Office,'' and inserting ``and any member
agency''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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