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Bill114th CongressFiled Mar 19, 2015Finance and Financial Sector
H.R. 1478

Policyholder Protection Act of 2015

Bill journey · stage 2 of 5

Under committee review

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What it doesSummary passed house amended (Nov 16, 2015)

Policyholder Protection Act of 2015

(Sec. 2) This bill amends the Federal Deposit Insurance Act to declare that any action of the Federal Deposit Insurance Corporation (FDIC) that requires a bank holding company to provide funds or other assets to a subsidiary depository institution is neither effective nor enforceable with respect to a savings and loan holding company that is also 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 directly or indirectly controls an insured depository institution (entities) if:

  • such funds or assets are to be provided by the entity, and
  • the relevant state insurance authority determines that such an action would have a materially adverse effect on the entity's financial condition.

The bill declares that requiring a bank holding company that is an insurance company to serve as a source of financial strength shall be deemed the kind of action of the Board of Governors of the Federal Reserve System that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for specified purposes of the Bank Holding Company Act of 1956.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended, with respect to systemic risk determination and the treatment of insurance companies and their subsidiaries, to authorize the FDIC to stand in the place of the appropriate regulatory agency and file a judicial action to place such companies into orderly rehabilitation under state law if the appropriate regulatory agency has not done so.

The FDIC, when funding the orderly liquidation of an insurance company or its subsidiary, shall notify the relevant state insurance authority promptly of its intention to take a lien on the company's assets.

The FDIC may take such a lien only:

  • to secure repayment of funds made available to such covered financial company or covered subsidiary; and
  • if it determines that the lien will neither unduly impede nor delay the liquidation or rehabilitation of the insurance company, or the recovery by its policyholders.

What just happenedNov 17, 2015

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Who’s behind it

Rep. Posey, Bill [R-FL-8](R-FL)Sponsor
35 cosponsors4 D31 R
Read on Congress.gov
35cosponsors2committees16actions4related bills7subjects
  1. Nov 17, 2015IntroReferral

    Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

    Banking, Housing, and Urban Affairs Committee
  2. Nov 16, 2015FloorH38310

    Motion to reconsider laid on the table Agreed to without objection.

  3. Nov 16, 2015FloorH37300

    On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H8217)

  4. Nov 16, 2015Floor8000

    Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H8217)

  5. Nov 16, 2015FloorH8D000

    DEBATE - The House proceeded with forty minutes of debate on H.R. 1478.

  6. Nov 16, 2015FloorH30000

    Considered under suspension of the rules. (consideration: CR H8217-8219)

  7. Nov 16, 2015FloorH30300

    Mr. Posey moved to suspend the rules and pass the bill, as amended.

  8. Nov 16, 2015CalendarsH12410

    Placed on the Union Calendar, Calendar No. 260.

  9. Nov 16, 2015CommitteeH12200

    Reported (Amended) by the Committee on Financial Services. H. Rept. 114-338.

    Financial Services Committee
  10. Nov 16, 2015Committee5000

    Reported (Amended) by the Committee on Financial Services. H. Rept. 114-338.

    Financial Services Committee
  11. Nov 4, 2015Committee

    Ordered to be Reported (Amended) by the Yeas and Nays: 57 - 0.

    Financial Services Committee
  12. Nov 4, 2015Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  13. Nov 3, 2015Committee

    Committee Consideration and Mark-up Session Held.

    Financial Services Committee
  14. Mar 19, 2015IntroReferralH11100

    Referred to the House Committee on Financial Services.

    Financial Services Committee
  15. Mar 19, 2015IntroReferralIntro-H

    Introduced in House

  16. Mar 19, 2015IntroReferral1000

    Introduced in House

Passed House amendedNov 16, 201536

Policyholder Protection Act of 2015

(Sec. 2) This bill amends the Federal Deposit Insurance Act to declare that any action of the Federal Deposit Insurance Corporation (FDIC) that requires a bank holding company to provide funds or other assets to a subsidiary depository institution is neither effective nor enforceable with respect to a savings and loan holding company that is also 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 directly or indirectly controls an insured depository institution (entities) if:

  • such funds or assets are to be provided by the entity, and
  • the relevant state insurance authority determines that such an action would have a materially adverse effect on the entity's financial condition.

The bill declares that requiring a bank holding company that is an insurance company to serve as a source of financial strength shall be deemed the kind of action of the Board of Governors of the Federal Reserve System that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for specified purposes of the Bank Holding Company Act of 1956.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended, with respect to systemic risk determination and the treatment of insurance companies and their subsidiaries, to authorize the FDIC to stand in the place of the appropriate regulatory agency and file a judicial action to place such companies into orderly rehabilitation under state law if the appropriate regulatory agency has not done so.

The FDIC, when funding the orderly liquidation of an insurance company or its subsidiary, shall notify the relevant state insurance authority promptly of its intention to take a lien on the company's assets.

The FDIC may take such a lien only:

  • to secure repayment of funds made available to such covered financial company or covered subsidiary; and
  • if it determines that the lien will neither unduly impede nor delay the liquidation or rehabilitation of the insurance company, or the recovery by its policyholders.
Introduced in HouseMar 19, 2015

Policyholder Protection Act of 2015

This bill amends the Federal Deposit Insurance Act to declare that any action of the Federal Deposit Insurance Corporation (FDIC) that requires a bank holding company to provide funds or other assets to a subsidiary depository institution is neither effective nor enforceable with respect to a savings and loan holding company that is also 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 directly or indirectly controls an insured depository institution (entities) if:

  • such funds or assets are to be provided by the entity, and
  • the relevant state insurance authority determines that such an action would have a materially adverse effect on the entity's financial condition.

The bill declares that requiring a bank holding company that is an insurance company to serve as a source of financial strength shall be deemed the kind of action of the Board of Governors of the Federal Reserve System that requires a bank holding company to provide funds or other assets to a subsidiary depository institution for specified purposes of the Bank Holding Company Act of 1956.

The Dodd-Frank Wall Street Reform and Consumer Protection Act is amended, with respect to systemic risk determination and the treatment of insurance companies and their subsidiaries, to authorize the FDIC to stand in the place of the appropriate regulatory agency and file a judicial action to place such companies into orderly rehabilitation under state law if the appropriate regulatory agency has not done so.

The FDIC, when funding the orderly liquidation of an insurance company or its subsidiary, shall notify the relevant state insurance authority promptly of its intention to take a lien on the company's assets.

The FDIC may not take such a lien, however, if the state insurance authority informs it that doing so would have a materially adverse effect upon the insurance company's policyholders.

Policyholder Protection Act of 2015 — Informed