Insurance Industry Modernization and Consumer Protection Act

Insurance Industry Modernization and Consumer Protection Act - Establishes the Office of National Insurers (Office), headed by a Director subject to the general oversight of the Secretary of the Treasury. Requires the Director to establish a Division of Consumer Affairs within the Office.

Prescribes guidelines for the supervision of national insurers, including: (1) annual on-site financial examination and onsite market conduct examination of each national insurer; (2) Federal license revocation, suspension, or restriction; (3) insurance fraud investigation; and (4) cooperative efforts with State and international insurance authorities.

Prohibits a national insurer from underwriting or selling any line of insurance for which it does not hold a Federal license.

Prescribes guidelines for establishment, subject to the Director's regulatory oversight, of a "protected cell" mechanism (identified pool of assets and liabilities of a national insurer segregated and insulated from the remainder of the insurer's assets and liabilities).

Requires the Director to establish standards for financial regulation of national insurers.

Places the following within the Director's regulatory purview: (1) insurance policy products; (2) life insurance underwriting; (3) group, blanket and franchise insurance; (4) insurance market conduct; (5) minimum national insurance standards; and (6) acquisitions of control, mergers, bulk transfers, and domestication of insurance companies.

Instructs the Director to submit recommendations to Congress whether national insurers should be authorized to underwrite health insurance.

Exempts specified activities of insurers from U.S. antitrust law.

Sets forth a regulatory scheme governing national insurers who are members of an insurance holding company system.

Preempts State insurance laws with respect to regulation of national insurers.

Sets forth a bankruptcy scheme for insolvent national insurers in receivership, including: (1) non-U.S. insurers; and (2) the business of life, property and casualty insurance.