article: 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.
summary: Bank Insurance Regulation Act of 1995 - Amends Federal banking law (Revised Statutes) to declare that Federal banking statutes may not be construed as limiting or impairing the authority of any State to regulate the manner in which a national bank may engage in insurance activities pursuant to Federal statute within the State. Proscribes State discrimination against national banks: (1) in their functions of providing insurance as principal, agent or broker; or (2) with respect to licensing qualifications and procedures. Confines the provision of insurance by a national bank acting as principal, agent or broker, to specified Federal statutory parameters. States that Federal banking law may not be construed as affecting the authority of a national bank to act as insurance agent or broker consistent with State law. States that Federal banking law does not enable a State to deny to a national bank the authority to provide a product that a State bank is permitted to provide. Declares that it is not incidental to banking for a national bank to provide insurance as a principal, agent, or broker (thus removing most insurance activities from the supervision of the Comptroller of the Currency). Declares to be incidental to banking (thus subject to the Comptroller's supervision): (1) bank provision, as agent or broker, of any annuity contract whose interest is tax deductible; and (2) bank provision, as a principal, agent, or broker, of any type of insurance (other than annuity or title insurance) specifically determined by the Comptroller, before May 1995, to be incidental to banking with respect to national banks. Preserves the authority of a bank holding company to engage in insurance agency activities.