H.R. 7130

[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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