15 U.S.C. § 6712 — Insurance underwriting in national banks

Page 2273 TITLE 15—COMMERCE AND TRADE § 6713 ‘‘(E) the availability and cost of private reinsur- ance for small insurers; and ‘‘(F) the impact that State workers compensation laws have on small insurers and workers compensa- tion carriers in the terrorism risk insurance mar- ketplace. ‘‘(2) REPORT.—The Secretary shall submit a report to the Congress setting forth the findings and conclu- sions of each study required under paragraph (1).’’ [Pub. L. 114–1, title I, §§ 103, 105, 111, 112, Jan. 12, 2015, 129 Stat. 4, 5, 10, 12, which directed amendment of ‘‘sub- paragraph (B) of section 103(e)(1)’’, ‘‘paragraph (1)(A) of section 102’’, ‘‘section 104’’, and ‘‘section 108’’, respec- tively, without specifying the name of the Act being amended, were executed to those sections of the Ter- rorism Risk Insurance Act of 2002 (title I of Pub. L. 107–297, set out above), to reflect the probable intent of Congress.] [Pub. L. 110–160, § 4(b)(2), Dec. 26, 2007, 121 Stat. 1840, which directed amendment of section 103(e)(3) of Pub. L. 107–297, set out above, by substituting period for ‘‘ ‘and the Congress shall’ and all that follows through the end of the paragraph’’, was executed by sub- stituting period for ‘‘and the Congress shall’’ and all that followed through end of first sentence, to reflect the probable intent of Congress, in light of insertion of last sentence of par. (3) by Pub. L. 110–160, § 4(b)(1).] Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. SUBCHAPTER I—STATE REGULATION OF INSURANCE § 6711. Functional regulation of insurance The insurance activities of any person (includ- ing a national bank exercising its power to act as agent under section 92 of title 12) shall be functionally regulated by the States, subject to section 6701 of this title. (Pub. L. 106–102, title III, § 301, Nov. 12, 1999, 113 Stat. 1407.) § 6712. Insurance underwriting in national banks (a) In general Except as provided in section 6713 of this title, a national bank and the subsidiaries of a na- tional bank may not provide insurance in a State as principal except that this prohibition shall not apply to authorized products. (b) Authorized products For the purposes of this section, a product is authorized if— (1) as of January 1, 1999, the Comptroller of the Currency had determined in writing that national banks may provide such product as principal, or national banks were in fact law- fully providing such product as principal; (2) no court of relevant jurisdiction had, by final judgment, overturned a determination of the Comptroller of the Currency that national banks may provide such product as principal; and (3) the product is not title insurance, or an annuity contract the income of which is sub- ject to tax treatment under section 72 of title 26. (c) Definition For purposes of this section, the term ‘‘insur- ance’’ means— (1) any product regulated as insurance as of January 1, 1999, in accordance with the rel- evant State insurance law, in the State in which the product is provided; (2) any product first offered after January 1, 1999, which— (A) a State insurance regulator determines shall be regulated as insurance in the State in which the product is provided because the product insures, guarantees, or indemnifies against liability, loss of life, loss of health, or loss through damage to or destruction of property, including, but not limited to, sur- ety bonds, life insurance, health insurance, title insurance, and property and casualty insurance (such as private passenger or com- mercial automobile, homeowners, mortgage, commercial multiperil, general liability, professional liability, workers’ compensa- tion, fire and allied lines, farm owners multiperil, aircraft, fidelity, surety, medical malpractice, ocean marine, inland marine, and boiler and machinery insurance); and (B) is not a product or service of a bank that is— (i) a deposit product; (ii) a loan, discount, letter of credit, or other extension of credit; (iii) a trust or other fiduciary service; (iv) a qualified financial contract (as de- fined in or determined pursuant to section 1821(e)(8)(D)(i) of title 12); or (v) a financial guaranty, except that this subparagraph (B) shall not apply to a prod- uct that includes an insurance component such that if the product is offered or pro- posed to be offered by the bank as prin- cipal— (I) it would be treated as a life insur- ance contract under section 7702 of title 26; or (II) in the event that the product is not a letter of credit or other similar exten- sion of credit, a qualified financial con- tract, or a financial guaranty, it would qualify for treatment for losses incurred with respect to such product under sec- tion 832(b)(5) of title 26, if the bank were subject to tax as an insurance company under section 831 of that title; or (3) any annuity contract, the income on which is subject to tax treatment under sec- tion 72 of title 26. (d) Rule of construction For purposes of this section, providing insur- ance (including reinsurance) outside the United States that insures, guarantees, or indemnifies insurance products provided in a State, or that indemnifies an insurance company with regard to insurance products provided in a State, shall be considered to be providing insurance as prin- cipal in that State. (Pub. L. 106–102, title III, § 302, Nov. 12, 1999, 113 Stat. 1407.) § 6713. Title insurance activities of national banks and their affiliates (a) General prohibition No national bank may engage in any activity involving the underwriting or sale of title insur- ance.