PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 3 

Public Law 114–1 

114th Congress 

An Act 

To extend the termination date of the Terrorism Insurance Program established 

under the Terrorism Risk Insurance Act of 2002, 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 AND TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Terrorism 

Risk Insurance Program Reauthorization Act of 2015’’. 

(b) TABLE OF CONTENTS.—The table of contents for this Act 

is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—EXTENSION OF TERRORISM INSURANCE PROGRAM 

Sec. 101. Extension of Terrorism Insurance Program. 

Sec. 102. Federal share. 

Sec. 103. Program trigger. 

Sec. 104. Recoupment of Federal share of compensation under the program. 

Sec. 105. Certification of acts of terrorism; consultation with Secretary of Homeland 

Security. 

Sec. 106. Technical amendments. 

Sec. 107. Improving the certification process. 

Sec. 108. GAO study. 

Sec. 109. Membership of Board of Governors of the Federal Reserve System. 

Sec. 110. Advisory Committee on Risk-Sharing Mechanisms. 

Sec. 111. Reporting of terrorism insurance data. 

Sec. 112. Annual study of small insurer market competitiveness. 

TITLE II—NATIONAL ASSOCIATION OF REGISTERED AGENTS AND 

BROKERS REFORM 

Sec. 201. Short title. 

Sec. 202. Reestablishment of the National Association of Registered Agents and 

Brokers. 

TITLE III—BUSINESS RISK MITIGATION AND PRICE STABILIZATION 

Sec. 301. Short title. 

Sec. 302. Margin requirements. 

Sec. 303. Implementation. 

TITLE I—EXTENSION OF TERRORISM 

INSURANCE PROGRAM 

SEC. 101. EXTENSION OF TERRORISM INSURANCE PROGRAM. 

Section 108(a) of the Terrorism Risk Insurance Act of 2002 

(15 U.S.C. 6701 note) is amended by striking ‘‘December 31, 2014’’ 

and inserting ‘‘December 31, 2020’’. 

Terrorism Risk 

Insurance 

Program 

Reauthorization 

Act of 2015. 

15 USC 6701 

note. 

Jan. 12, 2015 

[H.R. 26] 


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129 STAT. 4 PUBLIC LAW 114–1—JAN. 12, 2015 

SEC. 102. FEDERAL SHARE. 

Section 103(e)(1)(A) of the Terrorism Risk Insurance Act of 

2002 (15 U.S.C. 6701 note) is amended by inserting ‘‘and beginning 

on January 1, 2016, shall decrease by 1 percentage point per calendar year until equal to 80 percent’’ after ‘‘85 percent’’. 

SEC. 103. PROGRAM TRIGGER. 

Subparagraph (B) of section 103(e)(1) (15 U.S.C. 6701 note) 

is amended in the matter preceding clause (i)— 

(1) by striking ‘‘a certified act’’ and inserting ‘‘certified 

acts’’; 

(2) by striking ‘‘such certified act’’ and inserting ‘‘such 

certified acts’’; and 

(3) by striking ‘‘exceed’’ and all that follows through clause 

(ii) and inserting the following: ‘‘exceed— ‘‘(i) $100,000,000, with respect to such insured 

losses occurring in calendar year 2015; ‘‘(ii) $120,000,000, with respect to such insured 

losses occurring in calendar year 2016; ‘‘(iii) $140,000,000, with respect to such insured 

losses occurring in calendar year 2017; ‘‘(iv) $160,000,000, with respect to such insured 

losses occurring in calendar year 2018; ‘‘(v) $180,000,000, with respect to such insured 

losses occurring in calendar year 2019; and ‘‘(vi) $200,000,000, with respect to such insured 

losses occurring in calendar year 2020 and any calendar year thereafter.’’. 

SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COMPENSATION 

UNDER THE PROGRAM. 

Section 103(e) of the Terrorism Risk Insurance Act of 2002 

(15 U.S.C. 6701 note) is amended— 

(1) by amending paragraph (6) to read as follows: 

‘‘(6) INSURANCE MARKETPLACE AGGREGATE RETENTION

AMOUNT.— 

‘‘(A) IN GENERAL.—For purposes of paragraph (7), the 

insurance marketplace aggregate retention amount shall 

be the lesser of— 

‘‘(i) $27,500,000,000, as such amount is revised 

pursuant to this paragraph; and 

‘‘(ii) the aggregate amount, for all insurers, of 

insured losses during such calendar year. 

‘‘(B) REVISION OF INSURANCE MARKETPLACE AGGREGATE

RETENTION AMOUNT.— 

‘‘(i) PHASE-IN.—Beginning in the calendar year of 

enactment of the Terrorism Risk Insurance Program 

Reauthorization Act of 2015, the amount set forth 

under subparagraph (A)(i) shall increase by 

$2,000,000,000 per calendar year until equal to 

$37,500,000,000. 

‘‘(ii) FURTHER REVISION.—Beginning in the calendar year that follows the calendar year in which 

the amount set forth under subparagraph (A)(i) is equal 

to $37,500,000,000, the amount under subparagraph 

(A)(i) shall be revised to be the amount equal to the 

annual average of the sum of insurer deductibles for 

Effective dates. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 5 

all insurers participating in the Program for the prior 

3 calendar years, as such sum is determined by the 

Secretary under subparagraph (C). 

‘‘(C) RULEMAKING.—Not later than 3 years after the 

date of enactment of the Terrorism Risk Insurance Program 

Reauthorization Act of 2015, the Secretary shall— 

‘‘(i) issue final rules for determining the amount 

of the sum described under subparagraph (B)(ii); and 

‘‘(ii) provide a timeline for public notification of 

such determination.’’; and 

(2) in paragraph (7)— 

(A) in subparagraph (A)— 

(i) in the matter preceding clause (i), by striking 

‘‘for each of the periods referred to in subparagraphs 

(A) through (E) of paragraph (6)’’; and 

(ii) in clause (i), by striking ‘‘for such period’’; 

(B) by striking subparagraph (B) and inserting the 

following: 

‘‘(B) [Reserved.]’’; 

(C) in subparagraph (C)— 

(i) by striking ‘‘occurring during any of the periods 

referred to in any of subparagraphs (A) through (E) 

of paragraph (6), terrorism loss risk-spreading premiums in an amount equal to 133 percent’’ and 

inserting ‘‘, terrorism loss risk-spreading premiums in 

an amount equal to 140 percent’’; and 

(ii) by inserting ‘‘as calculated under subparagraph 

(A)’’ after ‘‘mandatory recoupment amount’’; and 

(D) in subparagraph (E)(i)— 

(i) in subclause (I)— 

(I) by striking ‘‘2010’’ and inserting ‘‘2017’’; 

and 

(II) by striking ‘‘2012’’ and inserting ‘‘2019’’; 

(ii) in subclause (II)— 

(I) by striking ‘‘2011’’ and inserting ‘‘2018’’; 

(II) by striking ‘‘2012’’ and inserting ‘‘2019’’; 

and 

(III) by striking ‘‘2017’’ and inserting ‘‘2024’’; 

and 

(iii) in subclause (III)— 

(I) by striking ‘‘2012’’ and inserting ‘‘2019’’; 

and 

(II) by striking ‘‘2017’’ and inserting ‘‘2024’’. 

SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CONSULTATION 

WITH SECRETARY OF HOMELAND SECURITY. 

Paragraph (1)(A) of section 102 (15 U.S.C. 6701 note) is 

amended in the matter preceding clause (i), by striking ‘‘concurrence 

with the Secretary of State’’ and inserting ‘‘consultation with the 

Secretary of Homeland Security’’. 

SEC. 106. TECHNICAL AMENDMENTS. 

The Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 

note) is amended— 

(1) in section 102— 

(A) in paragraph (3)— 

(i) by redesignating subparagraphs (A), (B), and 

(C) as clauses (i), (ii), and (iii), respectively; 

15 USC 6701 

note. 

Timeline. 

Public 

information. 

Determination. 

Deadline. 


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129 STAT. 6 PUBLIC LAW 114–1—JAN. 12, 2015 

(ii) in the matter preceding clause (i) (as so redesignated), by striking ‘‘An entity has’’ and inserting the 

following: 

‘‘(A) IN GENERAL.—An entity has’’; and 

(iii) by adding at the end the following new 

subparagraph: 

‘‘(B) RULE OF CONSTRUCTION.—An entity, including any 

affiliate thereof, does not have ‘control’ over another entity, 

if, as of the date of enactment of the Terrorism Risk Insurance Program Reauthorization Act of 2015, the entity is 

acting as an attorney-in-fact, as defined by the Secretary, 

for the other entity and such other entity is a reciprocal 

insurer, provided that the entity is not, for reasons other 

than the attorney-in-fact relationship, defined as having 

‘control’ under subparagraph (A).’’; 

(B) in paragraph (7)— 

(i) by striking subparagraphs (A) through (F) and 

inserting the following: 

‘‘(A) the value of an insurer’s direct earned premiums 

during the immediately preceding calendar year, multiplied 

by 20 percent; and’’; 

(ii) by redesignating subparagraph (G) as subparagraph (B); and 

(iii) in subparagraph (B), as so redesignated by 

clause (ii)— 

(I) by striking ‘‘notwithstanding subparagraphs (A) through (F), for the Transition Period 

or any Program Year’’ and inserting ‘‘notwithstanding subparagraph (A), for any calendar year’’; 

and 

(II) by striking ‘‘Period or Program Year’’ and 

inserting ‘‘calendar year’’; 

(C) by striking paragraph (11); and 

(D) by redesignating paragraphs (12) through (16) as 

paragraphs (11) through (15), respectively; and 

(2) in section 103— 

(A) in subsection (b)(2)— 

(i) in subparagraph (B), by striking ‘‘, purchase,’’; 

and 

(ii) in subparagraph (C), by striking ‘‘, purchase,’’; 

(B) in subsection (c), by striking ‘‘Program Year’’ and 

inserting ‘‘calendar year’’; 

(C) in subsection (e)— 

(i) in paragraph (1)(A), as previously amended by 

section 102— 

(I) by striking ‘‘the Transition Period and each 

Program Year through Program Year 4 shall be 

equal to 90 percent, and during Program Year 

5 and each Program Year thereafter’’ and inserting 

‘‘each calendar year’’; 

(II) by striking the comma after ‘‘80 percent’’; 

and 

(III) by striking ‘‘such Transition Period or 

such Program Year’’ and inserting ‘‘such calendar 

year’’; 

(ii) in paragraph (2)(A), by striking ‘‘the period 

beginning on the first day of the Transition Period 

15 USC 6701 

note. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 7 

and ending on the last day of Program Year 1, or 

during any Program Year thereafter’’ and inserting 

‘‘a calendar year’’; and 

(iii) in paragraph (3), by striking ‘‘the period beginning on the first day of the Transition Period and 

ending on the last day of Program Year 1, or during 

any other Program Year’’ and inserting ‘‘any calendar 

year’’; and 

(D) in subsection (g)(2)— 

(i) by striking ‘‘the Transition Period or a Program 

Year’’ each place that term appears and inserting ‘‘the 

calendar year’’; 

(ii) by striking ‘‘such period’’ and inserting ‘‘the 

calendar year’’; and 

(iii) by striking ‘‘that period’’ and inserting ‘‘the 

calendar year’’. 

SEC. 107. IMPROVING THE CERTIFICATION PROCESS. 

(a) DEFINITIONS.—As used in this section— 

(1) the term ‘‘act of terrorism’’ has the same meaning 

as in section 102(1) of the Terrorism Risk Insurance Act of 

2002 (15 U.S.C. 6701 note); 

(2) the term ‘‘certification process’’ means the process by 

which the Secretary determines whether to certify an act as 

an act of terrorism under section 102(1) of the Terrorism Risk 

Insurance Act of 2002 (15 U.S.C. 6701 note); and 

(3) the term ‘‘Secretary’’ means the Secretary of the 

Treasury. 

(b) STUDY.—Not later than 9 months after the date of enactment 

of this Act, the Secretary shall conduct and complete a study on 

the certification process. 

(c) REQUIRED CONTENT.—The study required under subsection 

(a) shall include an examination and analysis of— 

(1) the establishment of a reasonable timeline by which 

the Secretary must make an accurate determination on whether 

to certify an act as an act of terrorism; 

(2) the impact that the length of any timeline proposed 

to be established under paragraph (1) may have on the insurance industry, policyholders, consumers, and taxpayers as a 

whole; 

(3) the factors the Secretary would evaluate and monitor 

during the certification process, including the ability of the 

Secretary to obtain the required information regarding the 

amount of projected and incurred losses resulting from an act 

which the Secretary would need in determining whether to 

certify the act as an act of terrorism; 

(4) the appropriateness, efficiency, and effectiveness of the 

consultation process required under section 102(1)(A) of the 

Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 

and any recommendations on changes to the consultation 

process; and 

(5) the ability of the Secretary to provide guidance and 

updates to the public regarding any act that may reasonably 

be certified as an act of terrorism. 

(d) REPORT.—Upon completion of the study required under 

subsection (a), the Secretary shall submit a report on the results 

of such study to the Committee on Banking, Housing, and Urban 


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129 STAT. 8 PUBLIC LAW 114–1—JAN. 12, 2015 

Affairs of the Senate and the Committee on Financial Services 

of the House of Representatives. 

(e) RULEMAKING.—Section 102(1) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is amended— 

(1) by redesignating subparagraph (D) as subparagraph 

(E); and 

(2) by inserting after subparagraph (C) the following: 

‘‘(D) TIMING OF CERTIFICATION.—Not later than 9 

months after the report required under section 107 of the 

Terrorism Risk Insurance Program Reauthorization Act of 

2015 is submitted to the appropriate committees of Congress, the Secretary shall issue final rules governing the 

certification process, including establishing a timeline for 

which an act is eligible for certification by the Secretary 

on whether an act is an act of terrorism under this paragraph.’’. 

SEC. 108. GAO STUDY. 

(a) STUDY.—Not later than 2 years after the date of enactment 

of this Act, the Comptroller General of the United States shall 

complete a study on the viability and effects of the Federal Government— 

(1) assessing and collecting upfront premiums on insurers 

that participate in the Terrorism Insurance Program established under the Terrorism Risk Insurance Act of 2002 (15 

U.S.C. 6701 note) (hereafter in this section referred to as the 

‘‘Program’’), which shall include a comparison of practices in 

international markets to assess and collect premiums either 

before or after terrorism losses are incurred; and 

(2) creating a capital reserve fund under the Program and 

requiring insurers participating in the Program to dedicate 

capital specifically for terrorism losses before such losses are 

incurred, which shall include a comparison of practices in international markets to establish reserve funds. 

(b) REQUIRED CONTENT.—The study required under subsection 

(a) shall examine, but shall not be limited to, the following issues: 

(1) UPFRONT PREMIUMS.—With respect to upfront premiums 

described in subsection (a)(1)— 

(A) how the Federal Government could determine the 

price of such upfront premiums on insurers that participate 

in the Program; 

(B) how the Federal Government could collect and 

manage such upfront premiums; 

(C) how the Federal Government could ensure that 

such upfront premiums are not spent for purposes other 

than claims through the Program; 

(D) how the assessment and collection of such upfront 

premiums could affect take-up rates for terrorism risk coverage in different regions and industries and how it could 

impact small businesses and consumers in both metropolitan and non-metropolitan areas; 

(E) the effect of collecting such upfront premiums on 

insurers both large and small; 

(F) the effect of collecting such upfront premiums on 

the private market for terrorism risk reinsurance; and 

(G) the size of any Federal Government subsidy 

insurers may receive through their participation in the 

Assessment. 

Deadline. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 9 

Program, taking into account the Program’s current postevent recoupment structure. 

(2) CAPITAL RESERVE FUND.—With respect to the capital 

reserve fund described in subsection (a)(2)— 

(A) how the creation of a capital reserve fund would 

affect the Federal Government’s fiscal exposure under the 

Terrorism Risk Insurance Program and the ability of the 

Program to meet its statutory purposes; 

(B) how a capital reserve fund would impact insurers 

and reinsurers, including liquidity, insurance pricing, and 

capacity to provide terrorism risk coverage; 

(C) the feasibility of segregating funds attributable 

to terrorism risk from funds attributable to other insurance 

lines; 

(D) how a capital reserve fund would be viewed and 

treated under current Financial Accounting Standards 

Board accounting rules and the tax laws; and 

(E) how a capital reserve fund would affect the States’ 

ability to regulate insurers participating in the Program. 

(3) INTERNATIONAL PRACTICES.—With respect to international markets referred to in paragraphs (1) and (2) of subsection (a), how other countries, if any— 

(A) have established terrorism insurance structures; 

(B) charge premiums or otherwise collect funds to pay 

for the costs of terrorism insurance structures, including 

risk and administrative costs; and 

(C) have established capital reserve funds to pay for 

the costs of terrorism insurance structures. 

(c) REPORT.—Upon completion of the study required under subsection (a), the Comptroller General shall submit a report on the 

results of such study to the Committee on Banking, Housing, and 

Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. 

(d) PUBLIC AVAILABILITY.—The study and report required under 

this section shall be made available to the public in electronic 

form and shall be published on the website of the Government 

Accountability Office. 

SEC. 109. MEMBERSHIP OF BOARD OF GOVERNORS OF THE FEDERAL 

RESERVE SYSTEM. 

(a) IN GENERAL.—The first undesignated paragraph of section 

10 of the Federal Reserve Act (12 U.S.C. 241) is amended by 

inserting after the second sentence the following: ‘‘In selecting members of the Board, the President shall appoint at least 1 member 

with demonstrated primary experience working in or supervising 

community banks having less than $10,000,000,000 in total assets.’’. 

(b) EFFECTIVE DATE.—The amendment made by this section 

shall take effect on the date of enactment of this Act and apply 

to appointments made on and after that effective date, excluding 

any nomination pending in the Senate on that date. 

SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS. 

(a) FINDING; RULE OF CONSTRUCTION.— 

(1) FINDING.—Congress finds that it is desirable to encourage the growth of nongovernmental, private market reinsurance 

capacity for protection against losses arising from acts of terrorism. 

15 USC 6701 

note. 

Applicability. 

12 USC 241 note. 

President. 

Appointment. 

Web posting. 


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129 STAT. 10 PUBLIC LAW 114–1—JAN. 12, 2015 

(2) RULE OF CONSTRUCTION.—Nothing in this Act, any 

amendment made by this Act, or the Terrorism Risk Insurance 

Act of 2002 (15 U.S.C. 6701 note) shall prohibit insurers from 

developing risk-sharing mechanisms to voluntarily reinsure terrorism losses between and among themselves. 

(b) ADVISORY COMMITTEE ON RISK-SHARING MECHANISMS.— (1) ESTABLISHMENT.—The Secretary of the Treasury shall 

establish and appoint an advisory committee to be known as 

the ‘‘Advisory Committee on Risk-Sharing Mechanisms’’ 

(referred to in this subsection as the ‘‘Advisory Committee’’). 

(2) DUTIES.—The Advisory Committee shall provide advice, 

recommendations, and encouragement with respect to the creation and development of the nongovernmental risk-sharing 

mechanisms described under subsection (a). 

(3) MEMBERSHIP.—The Advisory Committee shall be composed of 9 members who are directors, officers, or other 

employees of insurers, reinsurers, or capital market participants that are participating or that desire to participate in 

the nongovernmental risk-sharing mechanisms described under 

subsection (a), and who are representative of the affected sectors of the insurance industry, including commercial property 

insurance, commercial casualty insurance, reinsurance, and 

alternative risk transfer industries. 

SEC. 111. REPORTING OF TERRORISM INSURANCE DATA. 

Section 104 (15 U.S.C. 6701 note) is amended by adding at 

the end the following new subsection: 

‘‘(h) REPORTING OF TERRORISM INSURANCE DATA.— 

‘‘(1) AUTHORITY.—During the calendar year beginning on 

January 1, 2016, and in each calendar year thereafter, the 

Secretary shall require insurers participating in the Program 

to submit to the Secretary such information regarding insurance 

coverage for terrorism losses of such insurers as the Secretary 

considers appropriate to analyze the effectiveness of the Program, which shall include information regarding— 

‘‘(A) lines of insurance with exposure to such losses; 

‘‘(B) premiums earned on such coverage; 

‘‘(C) geographical location of exposures; 

‘‘(D) pricing of such coverage; 

‘‘(E) the take-up rate for such coverage; 

‘‘(F) the amount of private reinsurance for acts of terrorism purchased; and 

‘‘(G) such other matters as the Secretary considers 

appropriate. 

‘‘(2) REPORTS.—Not later than June 30, 2016, and every 

other June 30 thereafter, the Secretary shall submit a report 

to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and 

Urban Affairs of the Senate that includes— 

‘‘(A) an analysis of the overall effectiveness of the Program; 

‘‘(B) an evaluation of any changes or trends in the 

data collected under paragraph (1); 

‘‘(C) an evaluation of whether any aspects of the Program have the effect of discouraging or impeding insurers 

from providing commercial property casualty insurance coverage or coverage for acts of terrorism; 

Time period. 

Effective date. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 11 

‘‘(D) an evaluation of the impact of the Program on 

workers’ compensation insurers; and 

‘‘(E) in the case of the data reported in paragraph 

(1)(B), an updated estimate of the total amount earned 

since January 1, 2003. 

‘‘(3) PROTECTION OF DATA.—To the extent possible, the Secretary shall contract with an insurance statistical aggregator 

to collect the information described in paragraph (1), which 

shall keep any nonpublic information confidential and provide 

it to the Secretary in an aggregate form or in such other 

form or manner that does not permit identification of the 

insurer submitting such information. 

‘‘(4) ADVANCE COORDINATION.—Before collecting any data 

or information under paragraph (1) from an insurer, or affiliate 

of an insurer, the Secretary shall coordinate with the appropriate State insurance regulatory authorities and any relevant 

government agency or publicly available sources to determine 

if the information to be collected is available from, and may 

be obtained in a timely manner by, individually or collectively, 

such entities. If the Secretary determines that such data or 

information is available, and may be obtained in a timely 

matter, from such entities, the Secretary shall obtain the data 

or information from such entities. If the Secretary determines 

that such data or information is not so available, the Secretary 

may collect such data or information from an insurer and 

affiliates. 

‘‘(5) CONFIDENTIALITY.— 

‘‘(A) RETENTION OF PRIVILEGE.—The submission of any 

non-publicly available data and information to the Secretary and the sharing of any non-publicly available data 

with or by the Secretary among other Federal agencies, 

the State insurance regulatory authorities, or any other 

entities under this subsection shall not constitute a waiver 

of, or otherwise affect, any privilege arising under Federal 

or State law (including the rules of any Federal or State 

court) to which the data or information is otherwise subject. 

‘‘(B) CONTINUED APPLICATION OF PRIOR CONFIDENTIALITY AGREEMENTS.—Any requirement under Federal or 

State law to the extent otherwise applicable, or any requirement pursuant to a written agreement in effect between 

the original source of any non-publicly available data or 

information and the source of such data or information 

to the Secretary, regarding the privacy or confidentiality 

of any data or information in the possession of the source 

to the Secretary, shall continue to apply to such data 

or information after the data or information has been provided pursuant to this subsection. 

‘‘(C) INFORMATION-SHARING AGREEMENT.—Any data or 

information obtained by the Secretary under this subsection 

may be made available to State insurance regulatory 

authorities, individually or collectively through an information-sharing agreement that— 

‘‘(i) shall comply with applicable Federal law; and 

‘‘(ii) shall not constitute a waiver of, or otherwise 

affect, any privilege under Federal or State law 

(including any privilege referred to in subparagraph 

Compliance. 

Determinations. 

Contracts. 

Confidentiality. 


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129 STAT. 12 PUBLIC LAW 114–1—JAN. 12, 2015 

(A) and the rules of any Federal or State court) to 

which the data or information is otherwise subject. 

‘‘(D) AGENCY DISCLOSURE REQUIREMENTS.—Section 552 

of title 5, United States Code, including any exceptions 

thereunder, shall apply to any data or information submitted under this subsection to the Secretary by an insurer 

or affiliate of an insurer.’’. 

SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET COMPETITIVENESS. 

Section 108 (15 U.S.C. 6701 note) is amended by adding at 

the end the following new subsection: 

‘‘(h) STUDY OF SMALL INSURER MARKET COMPETITIVENESS.— 

‘‘(1) IN GENERAL.—Not later than June 30, 2017, and every 

other June 30 thereafter, the Secretary shall conduct a study 

of small insurers (as such term is defined by regulation by 

the Secretary) participating in the Program, and identify any 

competitive challenges small insurers face in the terrorism 

risk insurance marketplace, including— 

‘‘(A) changes to the market share, premium volume, 

and policyholder surplus of small insurers relative to large 

insurers; 

‘‘(B) how the property and casualty insurance market 

for terrorism risk differs between small and large insurers, 

and whether such a difference exists within other perils; 

‘‘(C) the impact of the Program’s mandatory availability 

requirement under section 103(c) on small insurers; 

‘‘(D) the effect of increasing the trigger amount for 

the Program under section 103(e)(1)(B) on small insurers; 

‘‘(E) the availability and cost of private reinsurance 

for small insurers; and 

‘‘(F) the impact that State workers compensation laws 

have on small insurers and workers compensation carriers 

in the terrorism risk insurance marketplace. 

‘‘(2) REPORT.—The Secretary shall submit a report to the 

Congress setting forth the findings and conclusions of each 

study required under paragraph (1).’’. 

TITLE II—NATIONAL ASSOCIATION OF 

REGISTERED AGENTS AND BROKERS 

REFORM 

SEC. 201. SHORT TITLE. 

This title may be cited as the ‘‘National Association of Registered Agents and Brokers Reform Act of 2015’’. 

SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF 

REGISTERED AGENTS AND BROKERS. 

(a) IN GENERAL.—Subtitle C of title III of the Gramm-LeachBliley Act (15 U.S.C. 6751 et seq.) is amended to read as follows: 

15 USC 6701 

note. 

National 

Association of 

Registered 

Agents and 

Brokers Reform 

Act of 2015. 

Applicability. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 13 

‘‘Subtitle C—National Association of 

Registered Agents and Brokers 

‘‘SEC. 321. NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS. 

‘‘(a) ESTABLISHMENT.—There is established the National 

Association of Registered Agents and Brokers (referred to in this 

subtitle as the ‘Association’). 

‘‘(b) STATUS.—The Association shall— 

‘‘(1) be a nonprofit corporation; 

‘‘(2) not be an agent or instrumentality of the Federal 

Government; 

‘‘(3) be an independent organization that may not be 

merged with or into any other private or public entity; and 

‘‘(4) except as otherwise provided in this subtitle, be subject 

to, and have all the powers conferred upon, a nonprofit corporation by the District of Columbia Nonprofit Corporation Act 

(D.C. Code, sec. 29–301.01 et seq.) or any successor thereto. 

‘‘SEC. 322. PURPOSE. 

‘‘The purpose of the Association shall be to provide a mechanism 

through which licensing, continuing education, and other nonresident insurance producer qualification requirements and conditions may be adopted and applied on a multi-state basis without 

affecting the laws, rules, and regulations, and preserving the rights 

of a State, pertaining to— 

‘‘(1) licensing, continuing education, and other qualification 

requirements of insurance producers that are not members 

of the Association; 

‘‘(2) resident or nonresident insurance producer appointment requirements; 

‘‘(3) supervising and disciplining resident and nonresident 

insurance producers; 

‘‘(4) establishing licensing fees for resident and nonresident 

insurance producers so that there is no loss of insurance producer licensing revenue to the State; and 

‘‘(5) prescribing and enforcing laws and regulations regulating the conduct of resident and nonresident insurance producers. 

‘‘SEC. 323. MEMBERSHIP. 

‘‘(a) ELIGIBILITY.— 

‘‘(1) IN GENERAL.—Any insurance producer licensed in its 

home State shall, subject to paragraphs (2) and (4), be eligible 

to become a member of the Association. 

‘‘(2) INELIGIBILITY FOR SUSPENSION OR REVOCATION OF

LICENSE.—Subject to paragraph (3), an insurance producer is 

not eligible to become a member of the Association if a State 

insurance regulator has suspended or revoked the insurance 

license of the insurance producer in that State. 

‘‘(3) RESUMPTION OF ELIGIBILITY.—Paragraph (2) shall cease 

to apply to any insurance producer if— 

‘‘(A) the State insurance regulator reissues or renews 

the license of the insurance producer in the State in which 

the license was suspended or revoked, or otherwise terminates or vacates the suspension or revocation; or 

15 USC 6753. 

15 USC 6752. 

15 USC 6751. 


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129 STAT. 14 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(B) the suspension or revocation expires or is subsequently overturned by a court of competent jurisdiction. 

‘‘(4) CRIMINAL HISTORY RECORD CHECK REQUIRED.— 

‘‘(A) IN GENERAL.—An insurance producer who is an 

individual shall not be eligible to become a member of 

the Association unless the insurance producer has undergone a criminal history record check that complies with 

regulations prescribed by the Attorney General of the 

United States under subparagraph (K). 

‘‘(B) CRIMINAL HISTORY RECORD CHECK REQUESTED BY

HOME STATE.—An insurance producer who is licensed in 

a State and who has undergone a criminal history record 

check during the 2-year period preceding the date of 

submission of an application to become a member of the 

Association, in compliance with a requirement to undergo 

such criminal history record check as a condition for such 

licensure in the State, shall be deemed to have undergone 

a criminal history record check for purposes of subparagraph (A). 

‘‘(C) CRIMINAL HISTORY RECORD CHECK REQUESTED BY

ASSOCIATION.— 

‘‘(i) IN GENERAL.—The Association shall, upon 

request by an insurance producer licensed in a State, 

submit fingerprints or other identification information 

obtained from the insurance producer, and a request 

for a criminal history record check of the insurance 

producer, to the Federal Bureau of Investigation. 

‘‘(ii) PROCEDURES.—The board of directors of the 

Association (referred to in this subtitle as the ‘Board’) 

shall prescribe procedures for obtaining and utilizing 

fingerprints or other identification information and 

criminal history record information, including the 

establishment of reasonable fees to defray the expenses 

of the Association in connection with the performance 

of a criminal history record check and appropriate 

safeguards for maintaining confidentiality and security 

of the information. Any fees charged pursuant to this 

clause shall be separate and distinct from those 

charged by the Attorney General pursuant to subparagraph (I). 

‘‘(D) FORM OF REQUEST.—A submission under subparagraph (C)(i) shall include such fingerprints or other identification information as is required by the Attorney General 

concerning the person about whom the criminal history 

record check is requested, and a statement signed by the 

person authorizing the Attorney General to provide the 

information to the Association and for the Association to 

receive the information. 

‘‘(E) PROVISION OF INFORMATION BY ATTORNEY GENERAL.—Upon receiving a submission under subparagraph 

(C)(i) from the Association, the Attorney General shall 

search all criminal history records of the Federal Bureau 

of Investigation, including records of the Criminal Justice 

Information Services Division of the Federal Bureau of 

Investigation, that the Attorney General determines appropriate for criminal history records corresponding to the 

fingerprints or other identification information provided 

Time period. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 15 

under subparagraph (D) and provide all criminal history 

record information included in the request to the Association. 

‘‘(F) LIMITATION ON PERMISSIBLE USES OF INFORMA- TION.—Any information provided to the Association under 

subparagraph (E) may only— 

‘‘(i) be used for purposes of determining compliance 

with membership criteria established by the Association; 

‘‘(ii) be disclosed to State insurance regulators, 

or Federal or State law enforcement agencies, in 

conformance with applicable law; or 

‘‘(iii) be disclosed, upon request, to the insurance 

producer to whom the criminal history record information relates. 

‘‘(G) PENALTY FOR IMPROPER USE OR DISCLOSURE.— Whoever knowingly uses any information provided under 

subparagraph (E) for a purpose not authorized in subparagraph (F), or discloses any such information to anyone 

not authorized to receive it, shall be fined not more than 

$50,000 per violation as determined by a court of competent 

jurisdiction. 

‘‘(H) RELIANCE ON INFORMATION.—Neither the Association nor any of its Board members, officers, or employees 

shall be liable in any action for using information provided 

under subparagraph (E) as permitted under subparagraph 

(F) in good faith and in reasonable reliance on its accuracy. 

‘‘(I) FEES.—The Attorney General may charge a reasonable fee for conducting the search and providing the 

information under subparagraph (E), and any such fee 

shall be collected and remitted by the Association to the 

Attorney General. 

‘‘(J) RULE OF CONSTRUCTION.—Nothing in this paragraph shall be construed as— 

‘‘(i) requiring a State insurance regulator to perform criminal history record checks under this section; 

or 

‘‘(ii) limiting any other authority that allows access 

to criminal history records. 

‘‘(K) REGULATIONS.—The Attorney General shall prescribe regulations to carry out this paragraph, which shall 

include— 

‘‘(i) appropriate protections for ensuring the confidentiality of information provided under subparagraph (E); and 

‘‘(ii) procedures providing a reasonable opportunity 

for an insurance producer to contest the accuracy of 

information regarding the insurance producer provided 

under subparagraph (E). 

‘‘(L) INELIGIBILITY FOR MEMBERSHIP.— 

‘‘(i) IN GENERAL.—The Association may, under 

reasonably consistently applied standards, deny membership to an insurance producer on the basis of 

criminal history record information provided under 

subparagraph (E), or where the insurance producer 

has been subject to disciplinary action, as described 

in paragraph (2). 

Procedures. 


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129 STAT. 16 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(ii) RIGHTS OF APPLICANTS DENIED MEMBERSHIP.— The Association shall notify any insurance producer 

who is denied membership on the basis of criminal 

history record information provided under subparagraph (E) of the right of the insurance producer to— 

‘‘(I) obtain a copy of all criminal history record 

information provided to the Association under 

subparagraph (E) with respect to the insurance 

producer; and 

‘‘(II) challenge the denial of membership based 

on the accuracy and completeness of the information. 

‘‘(M) DEFINITION.—For purposes of this paragraph, the 

term ‘criminal history record check’ means a national background check of criminal history records of the Federal 

Bureau of Investigation. 

‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRITERIA.—The 

Association may establish membership criteria that bear a reasonable relationship to the purposes for which the Association was 

established. 

‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES OF MEMBERSHIP.— 

‘‘(1) CLASSES OF MEMBERSHIP.—The Association may establish separate classes of membership, with separate criteria, 

if the Association reasonably determines that performance of 

different duties requires different levels of education, training, 

experience, or other qualifications. 

‘‘(2) BUSINESS ENTITIES.—The Association shall establish 

a class of membership and membership criteria for business 

entities. A business entity that applies for membership shall 

be required to designate an individual Association member 

responsible for the compliance of the business entity with 

Association standards and the insurance laws, standards, and 

regulations of any State in which the business entity seeks 

to do business on the basis of Association membership. 

‘‘(3) CATEGORIES.— 

‘‘(A) SEPARATE CATEGORIES FOR INSURANCE PRODUCERS

PERMITTED.—The Association may establish separate categories of membership for insurance producers and for 

other persons or entities within each class, based on the 

types of licensing categories that exist under State laws. 

‘‘(B) SEPARATE TREATMENT FOR DEPOSITORY INSTITUTIONS PROHIBITED.—No special categories of membership, 

and no distinct membership criteria, shall be established 

for members that are depository institutions or for 

employees, agents, or affiliates of depository institutions. 

‘‘(d) MEMBERSHIP CRITERIA.— 

‘‘(1) IN GENERAL.—The Association may establish criteria 

for membership which shall include standards for personal 

qualifications, education, training, and experience. The Association shall not establish criteria that unfairly limit the ability 

of a small insurance producer to become a member of the 

Association, including imposing discriminatory membership 

fees. 

‘‘(2) QUALIFICATIONS.—In establishing criteria under paragraph (1), the Association shall not adopt any qualification 

less protective to the public than that contained in the National 

Notification. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 17 

Association of Insurance Commissioners (referred to in this 

subtitle as the ‘NAIC’) Producer Licensing Model Act in effect 

as of the date of enactment of the National Association of 

Registered Agents and Brokers Reform Act of 2015, and shall 

consider the highest levels of insurance producer qualifications 

established under the licensing laws of the States. 

‘‘(3) ASSISTANCE FROM STATES.— ‘‘(A) IN GENERAL.—The Association may request a State 

to provide assistance in investigating and evaluating the 

eligibility of a prospective member for membership in the 

Association. 

‘‘(B) AUTHORIZATION OF INFORMATION SHARING.—A 

submission under subsection (a)(4)(C)(i) made by an insurance producer licensed in a State shall include a statement 

signed by the person about whom the assistance is 

requested authorizing— 

‘‘(i) the State to share information with the 

Association; and 

‘‘(ii) the Association to receive the information. 

‘‘(C) RULE OF CONSTRUCTION.—Subparagraph (A) shall 

not be construed as requiring or authorizing any State 

to adopt new or additional requirements concerning the 

licensing or evaluation of insurance producers. 

‘‘(4) DENIAL OF MEMBERSHIP.—The Association may, based 

on reasonably consistently applied standards, deny membership 

to any State-licensed insurance producer for failure to meet 

the membership criteria established by the Association. 

‘‘(e) EFFECT OF MEMBERSHIP.— 

‘‘(1) AUTHORITY OF ASSOCIATION MEMBERS.—Membership 

in the Association shall— 

‘‘(A) authorize an insurance producer to sell, solicit, 

or negotiate insurance in any State for which the member 

pays the licensing fee set by the State for any line or 

lines of insurance specified in the home State license of 

the insurance producer, and exercise all such incidental 

powers as shall be necessary to carry out such activities, 

including claims adjustments and settlement to the extent 

permissible under the laws of the State, risk management, 

employee benefits advice, retirement planning, and any 

other insurance-related consulting activities; 

‘‘(B) be the equivalent of a nonresident insurance producer license for purposes of authorizing the insurance 

producer to engage in the activities described in subparagraph (A) in any State where the member pays the licensing 

fee; and 

‘‘(C) be the equivalent of a nonresident insurance producer license for the purpose of subjecting an insurance 

producer to all laws, regulations, provisions or other action 

of any State concerning revocation, suspension, or other 

enforcement action related to the ability of a member to 

engage in any activity within the scope of authority granted 

under this subsection and to all State laws, regulations, 

provisions, and actions preserved under paragraph (5). 

‘‘(2) VIOLENT CRIME CONTROL AND LAW ENFORCEMENT ACT

OF 1994.—Nothing in this subtitle shall be construed to alter, 

modify, or supercede any requirement established by section 

1033 of title 18, United States Code. 


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129 STAT. 18 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(3) AGENT FOR REMITTING FEES.—The Association shall 

act as an agent for any member for purposes of remitting 

licensing fees to any State pursuant to paragraph (1). 

‘‘(4) NOTIFICATION OF ACTION.— 

‘‘(A) IN GENERAL.—The Association shall notify the 

States (including State insurance regulators) and the NAIC 

when an insurance producer has satisfied the membership 

criteria of this section. The States (including State insurance regulators) shall have 10 business days after the 

date of the notification in order to provide the Association 

with evidence that the insurance producer does not satisfy 

the criteria for membership in the Association. 

‘‘(B) ONGOING DISCLOSURES REQUIRED.—On an ongoing 

basis, the Association shall disclose to the States (including 

State insurance regulators) and the NAIC a list of the 

States in which each member is authorized to operate. 

The Association shall immediately notify the States 

(including State insurance regulators) and the NAIC when 

a member is newly authorized to operate in one or more 

States, or is no longer authorized to operate in one or 

more States on the basis of Association membership. 

‘‘(5) PRESERVATION OF CONSUMER PROTECTION AND MARKET

CONDUCT REGULATION.— 

‘‘(A) IN GENERAL.—No provision of this section shall 

be construed as altering or affecting the applicability or 

continuing effectiveness of any law, regulation, provision, 

or other action of any State, including those described 

in subparagraph (B), to the extent that the State law, 

regulation, provision, or other action is not inconsistent 

with the provisions of this subtitle related to market entry 

for nonresident insurance producers, and then only to the 

extent of the inconsistency. 

‘‘(B) PRESERVED REGULATIONS.—The laws, regulations, 

provisions, or other actions of any State referred to in 

subparagraph (A) include laws, regulations, provisions, or 

other actions that— 

‘‘(i) regulate market conduct, insurance producer 

conduct, or unfair trade practices; 

‘‘(ii) establish consumer protections; or 

‘‘(iii) require insurance producers to be appointed 

by a licensed or authorized insurer. 

‘‘(f) BIENNIAL RENEWAL.—Membership in the Association shall 

be renewed on a biennial basis. 

‘‘(g) CONTINUING EDUCATION.— 

‘‘(1) IN GENERAL.—The Association shall establish, as a 

condition of membership, continuing education requirements 

which shall be comparable to the continuing education requirements under the licensing laws of a majority of the States. 

‘‘(2) STATE CONTINUING EDUCATION REQUIREMENTS.—A 

member may not be required to satisfy continuing education 

requirements imposed under the laws, regulations, provisions, 

or actions of any State other than the home State of the 

member. 

‘‘(3) RECIPROCITY.—The Association shall not require a 

member to satisfy continuing education requirements that are 

equivalent to any continuing education requirements of the 

State and local 

governments. 

Deadline. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 19 

home State of the member that have been satisfied by the 

member during the applicable licensing period. 

‘‘(4) LIMITATION ON THE ASSOCIATION.—The Association 

shall not directly or indirectly offer any continuing education 

courses for insurance producers. 

‘‘(h) PROBATION, SUSPENSION AND REVOCATION.— 

‘‘(1) DISCIPLINARY ACTION.—The Association may place an 

insurance producer that is a member of the Association on 

probation or suspend or revoke the membership of the insurance 

producer in the Association, or assess monetary fines or penalties, as the Association determines to be appropriate, if— 

‘‘(A) the insurance producer fails to meet the applicable 

membership criteria or other standards established by the 

Association; 

‘‘(B) the insurance producer has been subject to disciplinary action pursuant to a final adjudicatory proceeding 

under the jurisdiction of a State insurance regulator; 

‘‘(C) an insurance license held by the insurance producer has been suspended or revoked by a State insurance 

regulator; or 

‘‘(D) the insurance producer has been convicted of a 

crime that would have resulted in the denial of membership 

pursuant to subsection (a)(4)(L)(i) at the time of application, 

and the Association has received a copy of the final disposition from a court of competent jurisdiction. 

‘‘(2) VIOLATIONS OF ASSOCIATION STANDARDS.—The Association shall have the power to investigate alleged violations of 

Association standards. 

‘‘(3) REPORTING.—The Association shall immediately notify 

the States (including State insurance regulators) and the NAIC 

when the membership of an insurance producer has been placed 

on probation or has been suspended, revoked, or otherwise 

terminated, or when the Association has assessed monetary 

fines or penalties. 

‘‘(i) CONSUMER COMPLAINTS.— 

‘‘(1) IN GENERAL.—The Association shall— 

‘‘(A) refer any complaint against a member of the 

Association from a consumer relating to alleged misconduct 

or violations of State insurance laws to the State insurance 

regulator where the consumer resides and, when appropriate, to any additional State insurance regulator, as 

determined by standards adopted by the Association; and 

‘‘(B) make any related records and information available to each State insurance regulator to whom the complaint is forwarded. 

‘‘(2) TELEPHONE AND OTHER ACCESS.—The Association shall 

maintain a toll-free number for purposes of this subsection 

and, as practicable, other alternative means of communication 

with consumers, such as an Internet webpage. 

‘‘(3) FINAL DISPOSITION OF INVESTIGATION.—State insurance 

regulators shall provide the Association with information 

regarding the final disposition of a complaint referred pursuant 

to paragraph (1)(A), but nothing shall be construed to compel 

a State to release confidential investigation reports or other 

information protected by State law to the Association. 

‘‘(j) INFORMATION SHARING.—The Association may— 

Notification. 


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129 STAT. 20 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(1) share documents, materials, or other information, 

including confidential and privileged documents, with a State, 

Federal, or international governmental entity or with the NAIC 

or other appropriate entity referred to paragraphs (3) and (4), 

provided that the recipient has the authority and agrees to 

maintain the confidentiality or privileged status of the document, material, or other information; 

‘‘(2) limit the sharing of information as required under 

this subtitle with the NAIC or any other non-governmental 

entity, in circumstances under which the Association determines that the sharing of such information is unnecessary 

to further the purposes of this subtitle; 

‘‘(3) establish a central clearinghouse, or utilize the NAIC 

or another appropriate entity, as determined by the Association, 

as a central clearinghouse, for use by the Association and 

the States (including State insurance regulators), through 

which members of the Association may disclose their intent 

to operate in 1 or more States and pay the licensing fees 

to the appropriate States; and 

‘‘(4) establish a database, or utilize the NAIC or another 

appropriate entity, as determined by the Association, as a database, for use by the Association and the States (including 

State insurance regulators) for the collection of regulatory 

information concerning the activities of insurance producers. 

‘‘(k) EFFECTIVE DATE.—The provisions of this section shall take 

effect on the later of— 

‘‘(1) the expiration of the 2-year period beginning on the 

date of enactment of the National Association of Registered 

Agents and Brokers Reform Act of 2015; and 

‘‘(2) the date of incorporation of the Association. 

‘‘SEC. 324. BOARD OF DIRECTORS. 

‘‘(a) ESTABLISHMENT.—There is established a board of directors 

of the Association, which shall have authority to govern and supervise all activities of the Association. 

‘‘(b) POWERS.—The Board shall have such of the powers and 

authority of the Association as may be specified in the bylaws 

of the Association. 

‘‘(c) COMPOSITION.— 

‘‘(1) IN GENERAL.—The Board shall consist of 13 members 

who shall be appointed by the President, by and with the 

advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th 

Congress, of whom— 

‘‘(A) 8 shall be State insurance commissioners 

appointed in the manner provided in paragraph (2), 1 of 

whom shall be designated by the President to serve as 

the chairperson of the Board until the Board elects one 

such State insurance commissioner Board member to serve 

as the chairperson of the Board; 

‘‘(B) 3 shall have demonstrated expertise and experience with property and casualty insurance producer 

licensing; and 

‘‘(C) 2 shall have demonstrated expertise and experience with life or health insurance producer licensing. 

‘‘(2) STATE INSURANCE REGULATOR REPRESENTATIVES.— 

President. 

Appointments. 

15 USC 6754. 

Time period. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 21 

‘‘(A) RECOMMENDATIONS.—Before making any appointments pursuant to paragraph (1)(A), the President shall 

request a list of recommended candidates from the States 

through the NAIC, which shall not be binding on the President. If the NAIC 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 appointments without considering the views of the NAIC. 

‘‘(B) POLITICAL AFFILIATION.—Not more than 4 Board 

members appointed under paragraph (1)(A) shall belong 

to the same political party. 

‘‘(C) FORMER STATE INSURANCE COMMISSIONERS.— 

‘‘(i) IN GENERAL.—If, after offering each currently 

serving State insurance commissioner an appointment 

to the Board, fewer than 8 State insurance commissioners have accepted appointment to the Board, the 

President may appoint the remaining State insurance 

commissioner Board members, as required under paragraph (1)(A), of the appropriate political party as 

required under subparagraph (B), from among individuals who are former State insurance commissioners. 

‘‘(ii) LIMITATION.—A former State insurance 

commissioner appointed as described in clause (i) may 

not be employed by or have any present direct or 

indirect financial interest in any insurer, insurance 

producer, or other entity in the insurance industry, 

other than direct or indirect ownership of, or beneficial 

interest in, an insurance policy or annuity contract 

written or sold by an insurer. 

‘‘(D) SERVICE THROUGH TERM.—If a Board member 

appointed under paragraph (1)(A) ceases to be a State 

insurance commissioner during the term of the Board 

member, the Board member shall cease to be a Board 

member. 

‘‘(3) PRIVATE SECTOR REPRESENTATIVES.—In making any 

appointment pursuant to subparagraph (B) or (C) of paragraph 

(1), the President may seek recommendations for candidates 

from groups representing the category of individuals described, 

which shall not be binding on the President. 

‘‘(4) STATE INSURANCE COMMISSIONER DEFINED.—For purposes of this subsection, the term ‘State insurance commissioner’ means a person who serves in the position in State 

government, or on the board, commission, or other body that 

is the primary insurance regulatory authority for the State. 

‘‘(d) TERMS.— 

‘‘(1) IN GENERAL.—Except as provided under paragraph 

(2), the term of service for each Board member shall be 2 

years. 

‘‘(2) EXCEPTIONS.— 

‘‘(A) 1-YEAR TERMS.—The term of service shall be 1 

year, as designated by the President at the time of the 

nomination of the subject Board members for— 

‘‘(i) 4 of the State insurance commissioner Board 

members initially appointed under paragraph (1)(A), 

of whom not more than 2 shall belong to the same 

political party; 

President. 

Deadline. 

President. 


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129 STAT. 22 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(ii) 1 of the Board members initially appointed 

under paragraph (1)(B); and 

‘‘(iii) 1 of the Board members initially appointed 

under paragraph (1)(C). 

‘‘(B) EXPIRATION OF TERM.—A Board member may continue to serve after the expiration of the term to which 

the Board member was appointed for the earlier of 2 years 

or until a successor is appointed. 

‘‘(C) MID-TERM APPOINTMENTS.—A Board member 

appointed to fill a vacancy occurring before the expiration 

of the term for which the predecessor of the Board member 

was appointed shall be appointed only for the remainder 

of that term. 

‘‘(3) SUCCESSIVE TERMS.—Board members may be reappointed to successive terms. 

‘‘(e) INITIAL APPOINTMENTS.—The appointment of initial Board 

members shall be made no later than 90 days after the date of 

enactment of the National Association of Registered Agents and 

Brokers Reform Act of 2015. 

‘‘(f) MEETINGS.— 

‘‘(1) IN GENERAL.—The Board shall meet— 

‘‘(A) at the call of the chairperson; 

‘‘(B) as requested in writing to the chairperson by 

not fewer than 5 Board members; or 

‘‘(C) as otherwise provided by the bylaws of the Association. 

‘‘(2) QUORUM REQUIRED.—A majority of all Board members 

shall constitute a quorum. 

‘‘(3) VOTING.—Decisions of the Board shall require the 

approval of a majority of all Board members present at a 

meeting, a quorum being present. 

‘‘(4) INITIAL MEETING.—The Board shall hold its first 

meeting not later than 45 days after the date on which all 

initial Board members have been appointed. 

‘‘(g) RESTRICTION ON CONFIDENTIAL INFORMATION.—Board 

members appointed pursuant to subparagraphs (B) and (C) of subsection (c)(1) shall not have access to confidential information 

received by the Association in connection with complaints, investigations, or disciplinary proceedings involving insurance producers. 

‘‘(h) ETHICS AND CONFLICTS OF INTEREST.—The Board shall 

issue and enforce an ethical conduct code to address permissible 

and prohibited activities of Board members and Association officers, 

employees, agents, or consultants. The code shall, at a minimum, 

include provisions that prohibit any Board member or Association 

officer, employee, agent or consultant from— 

‘‘(1) engaging in unethical conduct in the course of performing Association duties; 

‘‘(2) participating in the making or influencing the making 

of any Association decision, the outcome of which the Board 

member, officer, employee, agent, or consultant knows or had 

reason to know would have a reasonably foreseeable material 

financial effect, distinguishable from its effect on the public 

generally, on the person or a member of the immediate family 

of the person; 

‘‘(3) accepting any gift from any person or entity other 

than the Association that is given because of the position held 

by the person in the Association; 

Deadline. 

Notification. 

Deadline. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 23 

‘‘(4) making political contributions to any person or entity 

on behalf of the Association; and 

‘‘(5) lobbying or paying a person to lobby on behalf of 

the Association. 

‘‘(i) COMPENSATION.— ‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 

no Board member may receive any compensation from the 

Association or any other person or entity on account of Board 

membership. 

‘‘(2) TRAVEL EXPENSES AND PER DIEM.—Board members may 

be reimbursed only by the Association for travel expenses, 

including per diem in lieu of subsistence, at rates consistent 

with rates authorized for employees of Federal agencies under 

subchapter I of chapter 57 of title 5, United States Code, 

while away from home or regular places of business in performance of services for the Association. 

‘‘SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY ACTIONS. 

‘‘(a) ADOPTION AND AMENDMENT OF BYLAWS AND STANDARDS.— 

‘‘(1) PROCEDURES.—The Association shall adopt procedures 

for the adoption of bylaws and standards that are similar 

to procedures under subchapter II of chapter 5 of title 5, United 

States Code (commonly known as the ‘Administrative Procedure 

Act’). 

‘‘(2) COPY REQUIRED TO BE FILED.—The Board shall submit 

to the President, through the Department of the Treasury, 

and the States (including State insurance regulators), and shall 

publish on the website of the Association, all proposed bylaws 

and standards of the Association, or any proposed amendment 

to the bylaws or standards of the Association, accompanied 

by a concise general statement of the basis and purpose of 

such proposal. 

‘‘(3) EFFECTIVE DATE.—Any proposed bylaw or standard 

of the Association, and any proposed amendment to the bylaws 

or standards of the Association, shall take effect, after notice 

under paragraph (2) and opportunity for public comment, on 

such date as the Association may designate, unless suspended 

under section 329(c). 

‘‘(4) RULE OF CONSTRUCTION.—Nothing in this section shall 

be construed to subject the Board or the Association to the 

requirements of subchapter II of chapter 5 of title 5, United 

States Code (commonly known as the ‘Administrative Procedure 

Act’). 

‘‘(b) DISCIPLINARY ACTION BY THE ASSOCIATION.— 

‘‘(1) SPECIFICATION OF CHARGES.—In any proceeding to 

determine whether membership shall be denied, suspended, 

revoked, or not renewed, or to determine whether a member 

of the Association should be placed on probation (referred to 

in this section as a ‘disciplinary action’) or whether to assess 

fines or monetary penalties, the Association shall bring specific 

charges, notify the member of the charges, give the member 

an opportunity to defend against the charges, and keep a record. 

‘‘(2) SUPPORTING STATEMENT.—A determination to take disciplinary action shall be supported by a statement setting 

forth— 

‘‘(A) any act or practice in which the member has 

been found to have been engaged; 

Determination. 

Notification. 

Records. 

Web posting. 

15 USC 6755. 


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129 STAT. 24 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(B) the specific provision of this subtitle or standard 

of the Association that any such act or practice is deemed 

to violate; and 

‘‘(C) the sanction imposed and the reason for the sanction. 

‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REPRESENTATIVES.— Board members appointed pursuant to section 324(c)(3) may 

not— 

‘‘(A) participate in any disciplinary action or be counted 

toward establishing a quorum during a disciplinary action; 

and 

‘‘(B) have access to confidential information concerning 

any disciplinary action. 

‘‘SEC. 326. POWERS. 

‘‘In addition to all the powers conferred upon a nonprofit corporation by the District of Columbia Nonprofit Corporation Act, 

the Association shall have the power to— 

‘‘(1) establish and collect such membership fees as the 

Association finds necessary to impose to cover the costs of 

its operations; 

‘‘(2) adopt, amend, and repeal bylaws, procedures, or standards governing the conduct of Association business and performance of its duties; 

‘‘(3) establish procedures for providing notice and opportunity for comment pursuant to section 325(a); 

‘‘(4) enter into and perform such agreements as necessary 

to carry out the duties of the Association; 

‘‘(5) hire employees, professionals, or specialists, and elect 

or appoint officers, and to fix their compensation, define their 

duties and give them appropriate authority to carry out the 

purposes of this subtitle, and determine their qualification; 

‘‘(6) establish personnel policies of the Association and programs relating to, among other things, conflicts of interest, 

rates of compensation, where applicable, and qualifications of 

personnel; 

‘‘(7) borrow money; and 

‘‘(8) secure funding for such amounts as the Association 

determines to be necessary and appropriate to organize and 

begin operations of the Association, which shall be treated 

as loans to be repaid by the Association with interest at market 

rate. 

‘‘SEC. 327. REPORT BY THE ASSOCIATION. 

‘‘(a) IN GENERAL.—As soon as practicable after the close of 

each fiscal year, the Association shall submit to the President, 

through the Department of the Treasury, and the States (including 

State insurance regulators), and shall publish on the website of 

the Association, a written report regarding the conduct of its business, and the exercise of the other rights and powers granted 

by this subtitle, during such fiscal year. 

‘‘(b) FINANCIAL STATEMENTS.—Each report submitted under 

subsection (a) with respect to any fiscal year shall include audited 

financial statements setting forth the financial position of the 

Association at the end of such fiscal year and the results of its 

operations (including the source and application of its funds) for 

such fiscal year. 

Web posting. 

15 USC 6757. 

15 USC 6756. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 25 

‘‘SEC. 328. LIABILITY OF THE ASSOCIATION AND THE BOARD MEMBERS, 

OFFICERS, AND EMPLOYEES OF THE ASSOCIATION. 

‘‘(a) IN GENERAL.—The Association shall not be deemed to 

be an insurer or insurance producer within the meaning of any 

State law, rule, regulation, or order regulating or taxing insurers, 

insurance producers, or other entities engaged in the business of 

insurance, including provisions imposing premium taxes, regulating 

insurer solvency or financial condition, establishing guaranty funds 

and levying assessments, or requiring claims settlement practices. 

‘‘(b) LIABILITY OF BOARD MEMBERS, OFFICERS, AND

EMPLOYEES.—No Board member, officer, or employee of the Association shall be personally liable to any person for any action taken 

or omitted in good faith in any matter within the scope of their 

responsibilities in connection with the Association. 

‘‘SEC. 329. PRESIDENTIAL OVERSIGHT. 

‘‘(a) REMOVAL OF BOARD.—If the President determines that 

the Association is acting in a manner contrary to the interests 

of the public or the purposes of this subtitle or has failed to 

perform its duties under this subtitle, the President may remove 

the entire existing Board for the remainder of the term to which 

the Board members were appointed and appoint, in accordance 

with section 324 and with the advice and consent of the Senate, 

in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, new Board members to fill the 

vacancies on the Board for the remainder of the terms. 

‘‘(b) REMOVAL OF BOARD MEMBER.—The President may remove 

a Board member only for neglect of duty or malfeasance in office. 

‘‘(c) SUSPENSION OF BYLAWS AND STANDARDS AND PROHIBITION

OF ACTIONS.—Following notice to the Board, the President, or a 

person designated by the President for such purpose, may suspend 

the effectiveness of any bylaw or standard, or prohibit any action, 

of the Association that the President or the designee determines 

is contrary to the purposes of this subtitle. 

‘‘SEC. 330. RELATIONSHIP TO STATE LAW. 

‘‘(a) PREEMPTION OF STATE LAWS.—State laws, regulations, 

provisions, or other actions purporting to regulate insurance producers shall be preempted to the extent provided in subsection 

(b). 

‘‘(b) PROHIBITED ACTIONS.— 

‘‘(1) IN GENERAL.—No State shall— 

‘‘(A) impede the activities of, take any action against, 

or apply any provision of law or regulation arbitrarily 

or discriminatorily to, any insurance producer because that 

insurance producer or any affiliate plans to become, has 

applied to become, or is a member of the Association; 

‘‘(B) impose any requirement upon a member of the 

Association that it pay fees different from those required 

to be paid to that State were it not a member of the 

Association; or 

‘‘(C) impose any continuing education requirements on 

any nonresident insurance producer that is a member of 

the Association. 

‘‘(2) STATES OTHER THAN A HOME STATE.—No State, other 

than the home State of a member of the Association, shall— 

15 USC 6760. 

Notification. 

Determination. 

15 USC 6759. 

15 USC 6758. 


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129 STAT. 26 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘(A) impose any licensing, personal or corporate qualifications, education, training, experience, residency, continuing education, or bonding requirement upon a member 

of the Association that is different from the criteria for 

membership in the Association or renewal of such membership; 

‘‘(B) impose any requirement upon a member of the 

Association that it be licensed, registered, or otherwise 

qualified to do business or remain in good standing in 

the State, including any requirement that the insurance 

producer register as a foreign company with the secretary 

of state or equivalent State official; 

‘‘(C) require that a member of the Association submit 

to a criminal history record check as a condition of doing 

business in the State; or 

‘‘(D) impose any licensing, registration, or appointment 

requirements upon a member of the Association, or require 

a member of the Association to be authorized to operate 

as an insurance producer, in order to sell, solicit, or negotiate insurance for commercial property and casualty risks 

to an insured with risks located in more than one State, 

if the member is licensed or otherwise authorized to operate 

in the State where the insured maintains its principal 

place of business and the contract of insurance insures 

risks located in that State. 

‘‘(3) PRESERVATION OF STATE DISCIPLINARY AUTHORITY.— 

Nothing in this section may be construed to prohibit a State 

from investigating and taking appropriate disciplinary action, 

including suspension or revocation of authority of an insurance 

producer to do business in a State, in accordance with State 

law and that is not inconsistent with the provisions of this 

section, against a member of the Association as a result of 

a complaint or for any alleged activity, regardless of whether 

the activity occurred before or after the insurance producer 

commenced doing business in the State pursuant to Association 

membership. 

‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY REGULATORY 

AUTHORITY. 

‘‘The Association shall coordinate with the Financial Industry 

Regulatory Authority in order to ease any administrative burdens 

that fall on members of the Association that are subject to regulation by the Financial Industry Regulatory Authority, consistent 

with the requirements of this subtitle and the Federal securities 

laws. 

‘‘SEC. 332. RIGHT OF ACTION. 

‘‘(a) RIGHT OF ACTION.—Any person aggrieved by a decision 

or action of the Association may, after reasonably exhausting available avenues for resolution within the Association, commence a 

civil action in an appropriate United States district court, and 

obtain all appropriate relief. 

‘‘(b) ASSOCIATION INTERPRETATIONS.—In any action under subsection (a), the court shall give appropriate weight to the interpretation of the Association of its bylaws and standards and this subtitle. 

Courts. 

15 USC 6762. 

15 USC 6761. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 27 

‘‘SEC. 333. FEDERAL FUNDING PROHIBITED. 

‘‘The Association may not receive, accept, or borrow any 

amounts from the Federal Government to pay for, or reimburse, 

the Association for, the costs of establishing or operating the 

Association. 

‘‘SEC. 334. DEFINITIONS. 

‘‘For purposes of this subtitle, the following definitions shall 

apply: 

‘‘(1) BUSINESS ENTITY.—The term ‘business entity’ means 

a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. 

‘‘(2) DEPOSITORY INSTITUTION.—The term ‘depository 

institution’ has the meaning as in section 3 of the Federal 

Deposit Insurance Act (12 U.S.C. 1813). 

‘‘(3) HOME STATE.—The term ‘home State’ means the State 

in which the insurance producer maintains its principal place 

of residence or business and is licensed to act as an insurance 

producer. 

‘‘(4) INSURANCE.—The term ‘insurance’ means any product, 

other than title insurance or bail bonds, defined or regulated 

as insurance by the appropriate State insurance regulatory 

authority. 

‘‘(5) INSURANCE PRODUCER.—The term ‘insurance producer’ 

means any insurance agent or broker, excess or surplus lines 

broker or agent, insurance consultant, limited insurance representative, and any other individual or entity that sells, 

solicits, or negotiates policies of insurance or offers advice, 

counsel, opinions or services related to insurance. 

‘‘(6) INSURER.—The term ‘insurer’ has the meaning as in 

section 313(e)(2)(B) of title 31, United States Code. 

‘‘(7) PRINCIPAL PLACE OF BUSINESS.—The term ‘principal 

place of business’ means the State in which an insurance producer maintains the headquarters of the insurance producer 

and, in the case of a business entity, where high-level officers 

of the entity direct, control, and coordinate the business activities of the business entity. 

‘‘(8) PRINCIPAL PLACE OF RESIDENCE.—The term ‘principal 

place of residence’ means the State in which an insurance 

producer resides for the greatest number of days during a 

calendar year. 

‘‘(9) STATE.—The term ‘State’ includes any State, the District of Columbia, any territory of the United States, and Puerto 

Rico, Guam, American Samoa, the Trust Territory of the Pacific 

Islands, the Virgin Islands, and the Northern Mariana Islands. 

‘‘(10) STATE LAW.— 

‘‘(A) IN GENERAL.—The term ‘State law’ includes all 

laws, decisions, rules, regulations, or other State action 

having the effect of law, of any State. 

‘‘(B) LAWS APPLICABLE IN THE DISTRICT OF COLUMBIA.— 

A law of the United States applicable only to or within 

the District of Columbia shall be treated as a State law 

rather than a law of the United States.’’. 

(b) TECHNICAL AMENDMENT.—The table of contents for the 

Gramm-Leach-Bliley Act is amended by striking the items relating 

to subtitle C of title III and inserting the following new items: 

15 USC 6764. 

15 USC 6763. 


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129 STAT. 28 PUBLIC LAW 114–1—JAN. 12, 2015 

‘‘Subtitle C—National Association of Registered Agents and Brokers 

‘‘Sec. 321. National Association of Registered Agents and Brokers. 

‘‘Sec. 322. Purpose. 

‘‘Sec. 323. Membership. 

‘‘Sec. 324. Board of directors. 

‘‘Sec. 325. Bylaws, standards, and disciplinary actions. 

‘‘Sec. 326. Powers. 

‘‘Sec. 327. Report by the Association. 

‘‘Sec. 328. Liability of the Association and the Board members, officers, and employees of the Association. 

‘‘Sec. 329. Presidential oversight. 

‘‘Sec. 330. Relationship to State law. 

‘‘Sec. 331. Coordination with financial industry regulatory authority. 

‘‘Sec. 332. Right of action. 

‘‘Sec. 333. Federal funding prohibited. 

‘‘Sec. 334. Definitions.’’. 

TITLE III—BUSINESS RISK MITIGATION 

AND PRICE STABILIZATION 

SEC. 301. SHORT TITLE. 

This title may be cited as the ‘‘Business Risk Mitigation and 

Price Stabilization Act of 2015’’. 

SEC. 302. MARGIN REQUIREMENTS. 

(a) COMMODITY EXCHANGE ACT AMENDMENT.—Section 4s(e) of 

the Commodity Exchange Act (7 U.S.C. 6s(e)), as added by section 

731 of the Dodd-Frank Wall Street Reform and Consumer Protection 

Act, is amended by adding at the end the following new paragraph: 

‘‘(4) APPLICABILITY WITH RESPECT TO COUNTERPARTIES.— 

The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), 

including the initial and variation margin requirements 

imposed by rules adopted pursuant to paragraphs (2)(A)(ii) 

and (2)(B)(ii), shall not apply to a swap in which a counterparty 

qualifies for an exception under section 2(h)(7)(A), or an exemption issued under section 4(c)(1) from the requirements of section 2(h)(1)(A) for cooperative entities as defined in such exemption, or satisfies the criteria in section 2(h)(7)(D).’’. 

(b) SECURITIES EXCHANGE ACT AMENDMENT.—Section 15F(e) 

of the Securities Exchange Act of 1934 (15 U.S.C. 78o–10(e)), as 

added by section 764(a) of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act, is amended by adding at the end 

the following new paragraph: 

‘‘(4) APPLICABILITY WITH RESPECT TO COUNTERPARTIES.— The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall 

not apply to a security-based swap in which a counterparty 

qualifies for an exception under section 3C(g)(1) or satisfies 

the criteria in section 3C(g)(4).’’. 

SEC. 303. IMPLEMENTATION. 

The amendments made by this title to the Commodity Exchange 

Act shall be implemented— 

(1) without regard to— 

(A) chapter 35 of title 44, United States Code; and 

(B) the notice and comment provisions of section 553 

of title 5, United States Code; 

(2) through the promulgation of an interim final rule, 

pursuant to which public comment will be sought before a 

final rule is issued; and 

Regulations. 

Public comments. 

7 USC 65 note. 

Business Risk 

Mitigation 

and Price 

Stabilization 

Act of 2015. 

7 USC 1 note. 


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PUBLIC LAW 114–1—JAN. 12, 2015 129 STAT. 29 

LEGISLATIVE HISTORY—H.R. 26: 

CONGRESSIONAL RECORD, Vol. 161 (2015): 

Jan. 7, considered and passed House. 

Jan. 8, considered and passed Senate. 

Æ 

(3) such that paragraph (1) shall apply solely to changes 

to rules and regulations, or proposed rules and regulations, 

that are limited to and directly a consequence of such amendments. 

Approved January 12, 2015. 

Applicability. 


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