McCarran-Ferguson Restoration Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7130 Introduced in House (IH)]

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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''.
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