113TH CONGRESS 

2D SESSION S. 1926 

AN ACT 

To delay the implementation of certain provisions of the 

Biggert-Waters Flood Insurance Reform Act of 2012 

and to reform the National Association of Registered 

Agents and Brokers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

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1 SECTION 1. TABLE OF CONTENTS. 

2 The table of contents for this Act is as follows: 

Sec. 1. Table of contents. 

TITLE I—HOMEOWNER FLOOD INSURANCE AFFORDABILITY ACT 

Sec. 101. Short title. 

Sec. 102. Definitions. 

Sec. 103. Delayed implementation of flood insurance rate increases; draft affordability framework. 

Sec. 104. Affordability study and report. 

Sec. 105. Affordability study funding. 

Sec. 106. Funds to reimburse homeowners for successful map appeals. 

Sec. 107. Flood protection systems. 

Sec. 108. Treatment of floodproofed residential basements. 

Sec. 109. Designation of flood insurance advocate. 

Sec. 110. Exceptions to escrow requirement for flood insurance payments. 

Sec. 111. Monthly installment payments for premiums. 

Sec. 112. Accounting for flood mitigation activities in estimates of premium 

rates. 

Sec. 113. Home improvement fairness. 

Sec. 114. Study of voluntary community-based flood insurance options. 

Sec. 115. Exemption from fees for certain map change requests. 

Sec. 116. Flood mitigation methods for urban buildings. 

TITLE II—NATIONAL ASSOCIATION OF REGISTERED AGENTS AND 

BROKERS 

Sec. 201. Short Title. 

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

and Brokers. 

3 TITLE I—HOMEOWNER FLOOD 

4 INSURANCE AFFORDABILITY 

5 ACT 

6 SEC. 101. SHORT TITLE. 

7 This title may be cited as the ‘‘Homeowner Flood In8 surance Affordability Act of 2014’’. 

9 SEC. 102. DEFINITIONS. 

10 As used in this title, the following definitions shall 

11 apply: 
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1 (1) ADJUSTED BASE FLOOD ELEVATION.—For 

2 purposes of rating a floodproofed covered structure, 

3 the term ‘‘adjusted base flood elevation’’ means the 

4 base flood elevation for a covered structure on the 

5 applicable effective flood insurance rate map, plus 1 

6 foot. 

7 (2) ADMINISTRATOR.—The term ‘‘Adminis8 trator’’ means the Administrator of the Federal 

9 Emergency Management Agency. 

10 (3) AFFORDABILITY STUDY.—The term ‘‘af11 fordability study’’ means the study required under 

12 section 100236 of the Biggert-Waters Flood Insur13 ance Reform Act of 2012 (Public Law 112–141; 126 

14 Stat. 957). 

15 (4) APPLICABLE FLOOD PLAIN MANAGEMENT

16 MEASURES.—The term ‘‘applicable flood plain man17 agement measures’’ means flood plain management 

18 measures adopted by a community under section 

19 60.3(c) of title 44, Code of Federal Regulations. 

20 (5) COVERED STRUCTURE.—The term ‘‘covered 

21 structure’’ means a residential structure— 

22 (A) that is located in a community that 

23 has adopted flood plain management measures 

24 that are approved by the Federal Emergency 

25 Management Agency and that satisfy the re-
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1 quirements for an exception for floodproofed 

2 residential basements under section 60.6(c) of 

3 title 44, Code of Federal Regulations; and 

4 (B) that was built in compliance with the 

5 applicable flood plain management measures. 

6 (6) DRAFT AFFORDABILITY FRAMEWORK.—The 

7 term ‘‘draft affordability framework’’ means the 

8 draft programmatic and regulatory framework re9 quired to be prepared by the Administrator and sub10 mitted to Congress under section 103(d) addressing 

11 the issues of affordability of flood insurance sold 

12 under the National Flood Insurance Program, in13 cluding issues identified in the affordability study. 

14 (7) FLOODPROOFED ELEVATION.—The term 

15 ‘‘floodproofed elevation’’ means the height of 

16 floodproofing on a covered structure, as identified on 

17 the Residential Basement Floodproofing Certificate 

18 for the covered structure. 

19 (8) NATIONAL FLOOD INSURANCE PROGRAM.— 

20 The term ‘‘National Flood Insurance Program’’ 

21 means the program established under the National 

22 Flood Insurance Act of 1968 (42 U.S.C. 4001 et 

23 seq.). 
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1 SEC. 103. DELAYED IMPLEMENTATION OF FLOOD INSUR2 ANCE RATE INCREASES; DRAFT AFFORD3 ABILITY FRAMEWORK. 

4 (a) DELAYED IMPLEMENTATION OF FLOOD INSUR5 ANCE RATE INCREASES.— 

6 (1) GRANDFATHERED PROPERTIES.—Beginning 

7 on the date of enactment of this Act, the Adminis8 trator may not implement section 1308(h) of the 

9 National Flood Insurance Act of 1968 (42 U.S.C. 

10 4015(h)). 

11 (2) PRE-FIRM PROPERTIES.—Beginning on the 

12 date of enactment of this Act, the Administrator 

13 may not implement— 

14 (A) section 1307(g)(1) of the National 

15 Flood Insurance Act of 1968 (42 U.S.C. 

16 4014(g)(1)); or 

17 (B) section 1307(g)(3) of the National 

18 Flood Insurance Act of 1968 (42 U.S.C. 

19 4014(g)(3)) with respect to any policy described 

20 in that section, provided that the decision of the 

21 policy holder to permit a lapse in flood insur22 ance coverage was as a result of the property 

23 covered by the policy no longer being required 

24 to retain such coverage. 
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1 (3) EXPIRATION.—The prohibitions set forth 

2 under paragraphs (1) and (2) shall expire 6 months 

3 after the later of— 

4 (A) the date on which the Administrator 

5 proposes the draft affordability framework; or 

6 (B) the date on which the Administrator 

7 certifies in writing to Congress that the Federal 

8 Emergency Management Agency has imple9 mented a flood mapping approach that, when 

10 applied, results in technically credible flood haz11 ard data in all areas where Flood Insurance 

12 Rate Maps are prepared or updated. 

13 (b) PROPERTY SALE TRIGGER.— 

14 (1) IN GENERAL.—Section 1307(g)(2) of the 

15 National Flood Insurance Act of 1968 (42 U.S.C. 

16 4014(g)(2)) is amended to read as follows: 

17 ‘‘(2) any property purchased after the expira18 tion of the 6-month period set forth under section 

19 103(a)(3) of the Homeowner Flood Insurance Af20 fordability Act of 2014;’’. 

21 (2) PROTECTION OF SUBSIDY FOR PROPERTIES

22 PURCHASED ON OR BEFORE EXPIRATION DATE.— 

23 Notwithstanding paragraph (1) or (3) of section 

24 1307(g) of the National Flood Insurance Act of 

25 1968 (42 U.S.C. 4014(g)(1) and (3)), the Adminis-
7 

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1 trator may not reduce the risk premium rate subsidy 

2 for flood insurance for a property purchased on or 

3 before the expiration of the 6-month period set forth 

4 under subsection (a)(3) of this section based on the 

5 fact that— 

6 (A) the property was not insured by the 

7 flood insurance program as of the date of en8 actment of the Biggert-Waters Flood Insurance 

9 Reform Act of 2012 (Public Law 112–141; 126 

10 Stat. 916); or 

11 (B) on or before the expiration of that 6- 

12 month period, the policy for the property had 

13 lapsed in coverage as a result of the deliberate 

14 choice of the policy holder, provided that the 

15 decision of the policy holder to permit a lapse 

16 in coverage was as a result of the property no 

17 longer being required to retain such coverage. 

18 (c) TREATMENT OF PRE-FIRM PROPERTIES.—Be19 ginning on the date of enactment of this Act and ending 

20 upon the expiration of the 6-month period set forth under 

21 subsection (a)(3), the Administrator shall restore the risk 

22 premium rate subsidies for flood insurance estimated 

23 under section 1307(a)(2) of the National Flood Insurance 

24 Act of 1968 (42 U.S.C. 4014(a)(2)) for any property— 
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1 (1) with respect to which the Administrator 

2 may not, under subsection (a)(2)(A) of this section, 

3 implement section 1307(g)(1) of the National Flood 

4 Insurance Act of 1968; 

5 (2) with respect to which the Administrator 

6 may not, under subsection (a)(2)(B) of this section, 

7 implement section 1307(g)(3) of the National Flood 

8 Insurance Act of 1968; or 

9 (3) described in section 1307(g)(2) of the Na10 tional Flood Insurance Act of 1968 (42 U.S.C. 

11 4014(g)(2)), as in effect on the day before the date 

12 of enactment of this Act. 

13 (d) DRAFT AFFORDABILITY FRAMEWORK.— 

14 (1) IN GENERAL.—The Administrator shall pre15 pare a draft affordability framework that proposes 

16 to address, via programmatic and regulatory 

17 changes, the issues of affordability of flood insur18 ance sold under the National Flood Insurance Pro19 gram, including issues identified in the affordability 

20 study. 

21 (2) CRITERIA.—In carrying out the require22 ments under paragraph (1), the Administrator shall 

23 consider the following criteria: 

24 (A) Accurate communication to consumers 

25 of the flood risk associated with their property. 
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1 (B) Targeted assistance to flood insurance 

2 policy holders based on their financial ability to 

3 continue to participate in the National Flood 

4 Insurance Program. 

5 (C) Individual or community actions to 

6 mitigate the risk of flood or lower the cost of 

7 flood insurance. 

8 (D) The impact of increases in risk pre9 mium rates on participation in the National 

10 Flood Insurance Program. 

11 (E) The impact flood insurance rate map 

12 updates have on the affordability of flood insur13 ance. 

14 (3) DEADLINE FOR SUBMISSION.—Not later 

15 than 18 months after the date on which the Admin16 istrator submits the affordability study, the Admin17 istrator shall submit to the full Committee on Bank18 ing, Housing, and Urban Affairs and the full Com19 mittee on Appropriations of the Senate and the full 

20 Committee on Financial Services and the full Com21 mittee on Appropriations of the House of Represent22 atives the draft affordability framework. 

23 (e) INTERAGENCY AGREEMENTS.—The Adminis24 trator may enter into an agreement with another Federal 

25 agency to— 
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1 (1) complete the affordability study; or 

2 (2) prepare the draft affordability framework. 

3 (f) CLEAR COMMUNICATIONS.—The Administrator 

4 shall clearly communicate full flood risk determinations to 

5 individual property owners regardless of whether their pre6 mium rates are full actuarial rates. 

7 (g) RULE OF CONSTRUCTION.—Nothing in this sec8 tion shall be construed to provide the Administrator with 

9 the authority to provide assistance to homeowners based 

10 on affordability that was not available prior to the enact11 ment of the Biggert-Waters Flood Insurance Reform Act 

12 of 2012 (Public Law 112–141; 126 Stat. 916). 

13 (h) DISCLOSURE.— 

14 (1) CHANGE IN RATES UNDER BIGGERT15 WATERS.—Not later than the date that is 6 months 

16 before the date on which any change in risk pre17 mium rates for flood insurance coverage under the 

18 National Flood Insurance Program resulting from 

19 the amendment made by section 100207 of the 

20 Biggert-Waters Flood Insurance Reform Act of 

21 2012 (Public Law 112–141; 126 Stat. 919) is imple22 mented, the Administrator shall make publicly avail23 able the rate tables and underwriting guidelines that 

24 provide the basis for the change. 
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1 (2) CHANGE IN RATES UNDER THIS ACT.—Not 

2 later than the date that is 6 months before the date 

3 on which any change in risk premium rates for flood 

4 insurance coverage under the National Flood Insur5 ance Program resulting from this Act or any amend6 ment made by this Act is implemented, the Adminis7 trator shall make publicly available the rate tables 

8 and underwriting guidelines that provide the basis 

9 for the change. 

10 (3) REPORT ON POLICY AND CLAIMS DATA.— 

11 (A) IN GENERAL.—Not later than 90 days 

12 after the date of enactment of this Act, the Ad13 ministrator shall submit to Congress a report 

14 on the feasibility of— 

15 (i) releasing property-level policy and 

16 claims data for flood insurance coverage 

17 under the National Flood Insurance Pro18 gram; and 

19 (ii) establishing guidelines for releas20 ing property-level policy and claims data 

21 for flood insurance coverage under the Na22 tional Flood Insurance Program in accord23 ance with section 552a of title 5, United 

24 States Code (commonly known as the ‘‘Pri25 vacy Act of 1974’’). 
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1 (B) CONTENTS.—The report submitted 

2 under subparagraph (A) shall include— 

3 (i) an analysis and assessment of how 

4 releasing property-level policy and claims 

5 data for flood insurance coverage under 

6 the National Flood Insurance Program will 

7 aid policy holders and insurers to under8 stand how the Administration determines 

9 actuarial premium rates and assesses flood 

10 risks; and 

11 (ii) recommendations for protecting 

12 personal information in accordance with 

13 section 552a of title 5, United States Code 

14 (commonly known as the ‘‘Privacy Act of 

15 1974’’). 

16 SEC. 104. AFFORDABILITY STUDY AND REPORT. 

17 Notwithstanding the deadline under section 

18 100236(c) of the Biggert-Waters Flood Insurance Reform 

19 Act of 2012 (Public Law 112–141; 126 Stat. 957), not 

20 later than 2 years after the date of enactment of this Act, 

21 the Administrator shall submit to the full Committee on 

22 Banking, Housing, and Urban Affairs and the full Com23 mittee on Appropriations of the Senate and the full Com24 mittee on Financial Services and the full Committee on 
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1 Appropriations of the House of Representatives the af2 fordability study and report required under such section. 

3 SEC. 105. AFFORDABILITY STUDY FUNDING. 

4 Section 100236(d) of the Biggert-Waters Flood In5 surance Reform Act of 2012 (Public Law 112–141; 126 

6 Stat. 957) is amended by striking ‘‘not more than 

7 $750,000’’ and inserting ‘‘such amounts as may be nec8 essary’’. 

9 SEC. 106. FUNDS TO REIMBURSE HOMEOWNERS FOR SUC10 CESSFUL MAP APPEALS. 

11 (a) IN GENERAL.—Section 1363(f) of the National 

12 Flood Insurance Act of 1968 (42 U.S.C. 4104(f)) is 

13 amended— 

14 (1) in the first sentence, by inserting after ‘‘as 

15 the case may be,’’ the following: ‘‘or, in the case of 

16 an appeal that is resolved by submission of con17 flicting data to the Scientific Resolution Panel pro18 vided for in section 1363A, the community,’’; and 

19 (2) by striking the second sentence and insert20 ing the following: ‘‘The Administrator may use such 

21 amounts from the National Flood Insurance Fund 

22 established under section 1310 as may be necessary 

23 to carry out this subsection.’’. 
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1 (b) CONFORMING AMENDMENT.—Section 1310(a) of 

2 the National Flood Insurance Act of 1968 (42 U.S.C. 

3 4017(a)) is amended— 

4 (1) in paragraph (6), by striking ‘‘and’’ at the 

5 end; 

6 (2) in paragraph (7), by striking the period at 

7 the end and inserting ‘‘; and’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(8) for carrying out section 1363(f).’’. 

10 SEC. 107. FLOOD PROTECTION SYSTEMS. 

11 (a) ADEQUATE PROGRESS ON CONSTRUCTION OF

12 FLOOD PROTECTION SYSTEMS.—Section 1307(e) of the 

13 National Flood Insurance Act of 1968 (42 U.S.C. 

14 4014(e)) is amended— 

15 (1) in the first sentence, by inserting ‘‘or recon16 struction’’ after ‘‘construction’’; 

17 (2) by striking the second sentence and insert18 ing the following: ‘‘The Administrator shall find that 

19 adequate progress on the construction or reconstruc20 tion of a flood protection system, based on the 

21 present value of the completed flood protection sys22 tem, has been made only if (1) 100 percent of the 

23 cost of the system has been authorized, (2) at least 

24 60 percent of the cost of the system has been appro25 priated, (3) at least 50 percent of the cost of the 
15 

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1 system has been expended, and (4) the system is at 

2 least 50 percent completed.’’; and 

3 (3) by adding at the end the following: ‘‘Not4 withstanding any other provision of law, in deter5 mining whether a community has made adequate 

6 progress on the construction, reconstruction, or im7 provement of a flood protection system, the Adminis8 trator shall consider all sources of funding, including 

9 Federal, State, and local funds.’’. 

10 (b) COMMUNITIES RESTORING DISACCREDITED

11 FLOOD PROTECTION SYSTEMS.—Section 1307(f) of the 

12 National Flood Insurance Act of 1968 (42 U.S.C. 

13 4014(f)) is amended by striking the first sentence and in14 serting the following: ‘‘Notwithstanding any other provi15 sion of law, this subsection shall apply to riverine and 

16 coastal levees that are located in a community which has 

17 been determined by the Administrator of the Federal 

18 Emergency Management Agency to be in the process of 

19 restoring flood protection afforded by a flood protection 

20 system that had been previously accredited on a Flood In21 surance Rate Map as providing 100-year frequency flood 

22 protection but no longer does so, and shall apply without 

23 regard to the level of Federal funding of or participation 

24 in the construction, reconstruction, or improvement of the 

25 flood protection system.’’. 
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1 SEC. 108. TREATMENT OF FLOODPROOFED RESIDENTIAL 

2 BASEMENTS. 

3 In implementing section 1308(h) of the National 

4 Flood Insurance Act of 1968 (42 U.S.C. 4015(h)), the Ad5 ministrator shall rate a covered structure using the ele6 vation difference between the floodproofed elevation of the 

7 covered structure and the adjusted base flood elevation of 

8 the covered structure. 

9 SEC. 109. DESIGNATION OF FLOOD INSURANCE ADVOCATE. 

10 (a) IN GENERAL.—The Administrator shall designate 

11 a Flood Insurance Advocate to advocate for the fair treat12 ment of policy holders under the National Flood Insurance 

13 Program and property owners in the mapping of flood 

14 hazards, the identification of risks from flood, and the im15 plementation of measures to minimize the risk of flood. 

16 (b) DUTIES AND RESPONSIBILITIES.—The duties 

17 and responsibilities of the Flood Insurance Advocate des18 ignated under subsection (a) shall be to— 

19 (1) educate property owners and policyholders 

20 under the National Flood Insurance Program on— 

21 (A) individual flood risks; 

22 (B) flood mitigation; 

23 (C) measures to reduce flood insurance 

24 rates through effective mitigation; and 

25 (D) the flood insurance rate map review 

26 and amendment process; 
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1 (2) assist policy holders under the National 

2 Flood Insurance Program and property owners to 

3 understand the procedural requirements related to 

4 appealing preliminary flood insurance rate maps and 

5 implementing measures to mitigate evolving flood 

6 risks; 

7 (3) assist in the development of regional capac8 ity to respond to individual constituent concerns 

9 about flood insurance rate map amendments and re10 visions; 

11 (4) coordinate outreach and education with 

12 local officials and community leaders in areas im13 pacted by proposed flood insurance rate map amend14 ments and revisions; and 

15 (5) aid potential policy holders under the Na16 tional Flood Insurance Program in obtaining and 

17 verifying accurate and reliable flood insurance rate 

18 information when purchasing or renewing a flood in19 surance policy. 

20 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated for each fiscal year such 

22 sums as may be necessary to carry out the duties and re23 sponsibilities of the Flood Insurance Advocate. 
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1 SEC. 110. EXCEPTIONS TO ESCROW REQUIREMENT FOR 

2 FLOOD INSURANCE PAYMENTS. 

3 (a) IN GENERAL.—Section 102(d)(1) of the Flood 

4 Disaster Protection Act of 1973 (42 U.S.C. 4012a(d)(1)) 

5 is amended— 

6 (1) in subparagraph (A), in the second sen7 tence, by striking ‘‘subparagraph (C)’’ and inserting 

8 ‘‘subparagraph (B)’’; and 

9 (2) in subparagraph (B)— 

10 (A) in clause (ii), by redesignating sub11 clauses (I) and (II) as items (aa) and (bb), re12 spectively, and adjusting the margins accord13 ingly; 

14 (B) by redesignating clauses (i) and (ii) as 

15 subclauses (I) and (II), respectively, and adjust16 ing the margins accordingly; 

17 (C) in the matter preceding subclause (I), 

18 as redesignated by subparagraph (B), by strik19 ing ‘‘(A) or (B), if—’’ and inserting the fol20 lowing: ‘‘(A)— 

21 ‘‘(i) if—’’; 

22 (D) by striking the period at the end and 

23 inserting ‘‘; or’’; and 

24 (E) by adding at the end the following 

25 ‘‘(ii) in the case of a loan that— 
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1 ‘‘(I) is in a junior or subordinate 

2 position to a senior lien secured by 

3 the same residential improved real es4 tate or mobile home for which flood 

5 insurance is being provided at the 

6 time of the origination of the loan; 

7 ‘‘(II) is secured by residential im8 proved real estate or a mobile home 

9 that is part of a condominium, cooper10 ative, or other project development, if 

11 the residential improved real estate or 

12 mobile home is covered by a flood in13 surance policy that— 

14 ‘‘(aa) meets the require15 ments that the regulated lending 

16 institution is required to enforce 

17 under subsection (b)(1); 

18 ‘‘(bb) is provided by the con19 dominium association, coopera20 tive, homeowners association, or 

21 other applicable group; and 

22 ‘‘(cc) the premium for which 

23 is paid by the condominium asso24 ciation, cooperative, homeowners 
20 

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1 association, or other applicable 

2 group as a common expense; 

3 ‘‘(III) is secured by residential 

4 improved real estate or a mobile home 

5 that is used as collateral for a busi6 ness purpose; 

7 ‘‘(IV) is a home equity line of 

8 credit; 

9 ‘‘(V) is a nonperforming loan; or 

10 ‘‘(VI) has a term of not longer 

11 than 12 months.’’. 

12 (b) APPLICABILITY.— 

13 (1) IN GENERAL.— 

14 (A) REQUIRED APPLICATION.—The 

15 amendments to section 102(d)(1) of the Flood 

16 Disaster Protection Act of 1973 (42 U.S.C. 

17 4012a(d)(1)) made by section 100209(a) of the 

18 Biggert-Waters Flood Insurance Reform Act of 

19 2012 (Public Law 112–141; 126 Stat. 920) and 

20 by subsection (a) of this section shall apply to 

21 any loan that is originated, refinanced, in22 creased, extended, or renewed on or after Janu23 ary 1, 2016. 

24 (B) OPTIONAL APPLICATION.— 
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1 (i) DEFINITIONS.—In this subpara2 graph— 

3 (I) the terms ‘‘Federal entity for 

4 lending regulation’’, ‘‘improved real 

5 estate’’, ‘‘regulated lending institu6 tion’’, and ‘‘servicer’’ have the mean7 ings given the terms in section 3 of 

8 the Flood Disaster Protection Act of 

9 1973 (42 U.S.C. 4003); 

10 (II) the term ‘‘outstanding loan’’ 

11 means a loan that— 

12 (aa) is outstanding as of 

13 January 1, 2016; 

14 (bb) is not subject to the re15 quirement to escrow premiums 

16 and fees for flood insurance 

17 under section 102(d)(1) of the 

18 Flood Disaster Protection Act of 

19 1973 (42 U.S.C. 4012a(d)(1)) as 

20 in effect on July 5, 2012; and 

21 (cc) would, if the loan had 

22 been originated, refinanced, in23 creased, extended, or renewed on 

24 or after January 1, 2016, be sub25 ject to the requirements under 
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1 section 102(d)(1)(A) of the Flood 

2 Disaster Protection Act of 1973, 

3 as amended; and 

4 (III) the term ‘‘section 

5 102(d)(1)(A) of the Flood Disaster 

6 Protection Act of 1973, as amended’’ 

7 means section 102(d)(1)(A) of the 

8 Flood Disaster Protection Act of 1973 

9 (42 U.S.C. 4012a(d)(1)(A)), as 

10 amended by— 

11 (aa) section 100209(a) of 

12 the Biggert-Waters Flood Insur13 ance Reform Act of 2012 (Public 

14 Law 112–141; 126 Stat. 920); 

15 and 

16 (bb) subsection (a) of this 

17 section. 

18 (ii) OPTION TO ESCROW FLOOD IN19 SURANCE PAYMENTS.—Each Federal enti20 ty for lending regulation (after consulta21 tion and coordination with the Federal Fi22 nancial Institutions Examination Council) 

23 shall, by regulation, direct that each regu24 lated lending institution or servicer of an 

25 outstanding loan shall offer and make 
23 

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1 available to a borrower the option to have 

2 the borrower’s payment of premiums and 

3 fees for flood insurance under the National 

4 Flood Insurance Act of 1968 (42 U.S.C. 

5 4001 et seq.), including the escrow of such 

6 payments, be treated in the same manner 

7 provided under section 102(d)(1)(A) of the 

8 Flood Disaster Protection Act of 1973, as 

9 amended. 

10 (2) REPEAL OF 2-YEAR DELAY ON APPLICA11 BILITY.—Subsection (b) of section 100209 of the 

12 Biggert-Waters Flood Insurance Reform Act of 

13 2012 (Public Law 112–141; 126 Stat. 920) is re14 pealed. 

15 (3) RULE OF CONSTRUCTION.—Nothing in this 

16 section or the amendments made by this section 

17 shall be construed to supersede, during the period 

18 beginning on July 6, 2012 and ending on December 

19 31, 2015, the requirements under section 102(d)(1) 

20 of the Flood Disaster Protection Act of 1973 (42 

21 U.S.C. 4012a(d)(1)), as in effect on July 5, 2012. 

22 SEC. 111. MONTHLY INSTALLMENT PAYMENTS FOR PRE23 MIUMS. 

24 Section 1308(g) of the National Flood Insurance Act 

25 of 1968 (42 U.S.C. 4015(g)) is amended by striking ‘‘ei-
24 

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1 ther annually or in more frequent installments’’ and in2 serting ‘‘annually, monthly, or in other installments that 

3 are more frequent than annually’’. 

4 SEC. 112. ACCOUNTING FOR FLOOD MITIGATION ACTIVI5 TIES IN ESTIMATES OF PREMIUM RATES. 

6 Section 1307(a)(1) of the National Flood Insurance 

7 Act of 1968 (42 U.S.C. 4014(a)(1)) is amended by amend8 ing subparagraph (A) to read as follows: 

9 ‘‘(A) based on consideration of— 

10 ‘‘(i) the risk involved and accepted ac11 tuarial principles; and 

12 ‘‘(ii) the flood mitigation activities 

13 that an owner or lessee has undertaken on 

14 a property, including differences in the risk 

15 involved due to land use measures, 

16 floodproofing, flood forecasting, and simi17 lar measures,’’. 

18 SEC. 113. HOME IMPROVEMENT FAIRNESS. 

19 Section 1307(a)(2)(E)(ii) of the National Flood In20 surance Act of 1968 (42 U.S.C. 4014(a)(2)(E)(ii)) is 

21 amended by striking ‘‘30 percent’’ and inserting ‘‘50 per22 cent’’. 

23 SEC. 114. STUDY OF VOLUNTARY COMMUNITY-BASED 

24 FLOOD INSURANCE OPTIONS. 

25 (a) STUDY.— 
25 

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1 (1) STUDY REQUIRED.—The Administrator 

2 shall conduct a study to assess options, methods, 

3 and strategies for making available voluntary com4 munity-based flood insurance policies through the 

5 National Flood Insurance Program. 

6 (2) CONSIDERATIONS.—The study conducted 

7 under paragraph (1) shall— 

8 (A) take into consideration and analyze 

9 how voluntary community-based flood insurance 

10 policies— 

11 (i) would affect communities having 

12 varying economic bases, geographic loca13 tions, flood hazard characteristics or classi14 fications, and flood management ap15 proaches; and 

16 (ii) could satisfy the applicable re17 quirements under section 102 of the Flood 

18 Disaster Protection Act of 1973 (42 

19 U.S.C. 4012a); and 

20 (B) evaluate the advisability of making 

21 available voluntary community-based flood in22 surance policies to communities, subdivisions of 

23 communities, and areas of residual risk. 

24 (3) CONSULTATION.—In conducting the study 

25 required under paragraph (1), the Administrator 
26 

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1 may consult with the Comptroller General of the 

2 United States, as the Administrator determines is 

3 appropriate. 

4 (b) REPORT BY THE ADMINISTRATOR.— 

5 (1) REPORT REQUIRED.—Not later than 18 

6 months after the date of enactment of this Act, the 

7 Administrator shall submit to the Committee on 

8 Banking, Housing, and Urban Affairs of the Senate 

9 and the Committee on Financial Services of the 

10 House of Representatives a report that contains the 

11 results and conclusions of the study conducted under 

12 subsection (a). 

13 (2) CONTENTS.—The report submitted under 

14 paragraph (1) shall include recommendations for— 

15 (A) the best manner to incorporate vol16 untary community-based flood insurance poli17 cies into the National Flood Insurance Pro18 gram; and 

19 (B) a strategy to implement voluntary 

20 community-based flood insurance policies that 

21 would encourage communities to undertake 

22 flood mitigation activities, including the con23 struction, reconstruction, or improvement of 

24 levees, dams, or other flood control structures. 
27 

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1 (c) REPORT BY COMPTROLLER GENERAL.—Not later 

2 than 6 months after the date on which the Administrator 

3 submits the report required under subsection (b), the 

4 Comptroller General of the United States shall— 

5 (1) review the report submitted by the Adminis6 trator; and 

7 (2) submit to the Committee on Banking, 

8 Housing, and Urban Affairs of the Senate and the 

9 Committee on Financial Services of the House of 

10 Representatives a report that contains— 

11 (A) an analysis of the report submitted by 

12 the Administrator; 

13 (B) any comments or recommendations of 

14 the Comptroller General relating to the report 

15 submitted by the Administrator; and 

16 (C) any other recommendations of the 

17 Comptroller General relating to community18 based flood insurance policies. 

19 SEC. 115. EXEMPTION FROM FEES FOR CERTAIN MAP 

20 CHANGE REQUESTS. 

21 Notwithstanding any other provision of law, a re22 quester shall be exempt from submitting a review or proc23 essing fee for a request for a flood insurance rate map 

24 change based on a habitat restoration project that is fund25 ed in whole or in part with Federal or State funds, includ-
28 

†S 1926 ES

1 ing dam removal, culvert redesign or installation, or the 

2 installation of fish passage. 

3 SEC. 116. FLOOD MITIGATION METHODS FOR URBAN 

4 BUILDINGS. 

5 (a) IN GENERAL.—Not later than 1 year after the 

6 date of enactment of this Act, the Administrator shall 

7 issue guidelines for property owners that— 

8 (1) provide alternative methods of mitigation, 

9 other than building elevation, to reduce flood risk to 

10 urban residential buildings that cannot be elevated 

11 due to their structural characteristics, including— 

12 (A) types of building materials; and 

13 (B) types of floodproofing; and 

14 (2) inform property owners about how the im15 plementation of mitigation methods described in 

16 paragraph (1) may affect risk premium rates for 

17 flood insurance coverage under the National Flood 

18 Insurance Program. 

19 (b) CALCULATION OF RISK PREMIUM RATES.—In 

20 calculating the risk premium rate charged for flood insur21 ance for a property under section 1308 of the National 

22 Flood Insurance Act of 1968 (42 U.S.C. 4015), the Ad23 ministrator shall take into account the implementation of 

24 any mitigation method identified by the Administrator in 

25 the guidance issued under subsection (a) of this section. 
29 

†S 1926 ES

1 TITLE II—NATIONAL ASSOCIA2 TION OF REGISTERED 

3 AGENTS AND BROKERS 

4 SEC. 201. SHORT TITLE. 

5 This title may be cited as the ‘‘National Association 

6 of Registered Agents and Brokers Reform Act of 2014’’. 

7 SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIA8 TION OF REGISTERED AGENTS AND BRO9 KERS. 

10 (a) IN GENERAL.—Subtitle C of title III of the 

11 Gramm-Leach-Bliley Act (15 U.S.C. 6751 et seq.) is 

12 amended to read as follows: 

13 ‘‘Subtitle C—National Association 

14 of Registered Agents and Brokers 

15 ‘‘SEC. 321. NATIONAL ASSOCIATION OF REGISTERED 

16 AGENTS AND BROKERS. 

17 ‘‘(a) ESTABLISHMENT.—There is established the Na18 tional Association of Registered Agents and Brokers (re19 ferred to in this subtitle as the Association). 

20 ‘‘(b) STATUS.—The Association shall— 

21 ‘‘(1) be a nonprofit corporation; 

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

23 Federal Government; 
30 

†S 1926 ES

1 ‘‘(3) be an independent organization that may 

2 not be merged with or into any other private or pub3 lic entity; and 

4 ‘‘(4) except as otherwise provided in this sub5 title, be subject to, and have all the powers conferred 

6 upon, a nonprofit corporation by the District of Co7 lumbia Nonprofit Corporation Act (D.C. Code, sec. 

8 29–301.01 et seq.) or any successor thereto. 

9 ‘‘SEC. 322. PURPOSE. 

10 ‘‘The purpose of the Association shall be to provide 

11 a mechanism through which licensing, continuing edu12 cation, and other nonresident insurance producer quali13 fication requirements and conditions may be adopted and 

14 applied on a multi-state basis without affecting the laws, 

15 rules, and regulations, and preserving the rights of a 

16 State, pertaining to— 

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

18 qualification requirements of insurance producers 

19 that are not members of the Association; 

20 ‘‘(2) resident or nonresident insurance producer 

21 appointment requirements; 

22 ‘‘(3) supervising and disciplining resident and 

23 nonresident insurance producers; 

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

25 nonresident insurance producers so that there is no 
31 

†S 1926 ES

1 loss of insurance producer licensing revenue to the 

2 State; and 

3 ‘‘(5) prescribing and enforcing laws and regula4 tions regulating the conduct of resident and non5 resident insurance producers. 

6 ‘‘SEC. 323. MEMBERSHIP. 

7 ‘‘(a) ELIGIBILITY.— 

8 ‘‘(1) IN GENERAL.—Any insurance producer li9 censed in its home State shall, subject to paragraphs 

10 (2) and (4), be eligible to become a member of the 

11 Association. 

12 ‘‘(2) INELIGIBILITY FOR SUSPENSION OR REV13 OCATION OF LICENSE.—Subject to paragraph (3), 

14 an insurance producer is not eligible to become a 

15 member of the Association if a State insurance regu16 lator has suspended or revoked the insurance license 

17 of the insurance producer in that State. 

18 ‘‘(3) RESUMPTION OF ELIGIBILITY.—Paragraph 

19 (2) shall cease to apply to any insurance producer 

20 if— 

21 ‘‘(A) the State insurance regulator reissues 

22 or renews the license of the insurance producer 

23 in the State in which the license was suspended 

24 or revoked, or otherwise terminates or vacates 

25 the suspension or revocation; or 
32 

†S 1926 ES

1 ‘‘(B) the suspension or revocation expires 

2 or is subsequently overturned by a court of 

3 competent jurisdiction. 

4 ‘‘(4) CRIMINAL HISTORY RECORD CHECK RE5 QUIRED.— 

6 ‘‘(A) IN GENERAL.—An insurance pro7 ducer who is an individual shall not be eligible 

8 to become a member of the Association unless 

9 the insurance producer has undergone a crimi10 nal history record check that complies with reg11 ulations prescribed by the Attorney General of 

12 the United States under subparagraph (K). 

13 ‘‘(B) CRIMINAL HISTORY RECORD CHECK

14 REQUESTED BY HOME STATE.—An insurance 

15 producer who is licensed in a State and who has 

16 undergone a criminal history record check dur17 ing the 2-year period preceding the date of sub18 mission of an application to become a member 

19 of the Association, in compliance with a re20 quirement to undergo such criminal history 

21 record check as a condition for such licensure 

22 in the State, shall be deemed to have undergone 

23 a criminal history record check for purposes of 

24 subparagraph (A). 
33 

†S 1926 ES

1 ‘‘(C) CRIMINAL HISTORY RECORD CHECK

2 REQUESTED BY ASSOCIATION.— 

3 ‘‘(i) IN GENERAL.—The Association 

4 shall, upon request by an insurance pro5 ducer licensed in a State, submit identi6 fication information obtained from the in7 surance producer, and a request for a 

8 criminal history record check of the insur9 ance producer, to the Federal Bureau of 

10 Investigation. 

11 ‘‘(ii) PROCEDURES.—The board of di12 rectors of the Association (referred to in 

13 this subtitle as the Board) shall prescribe 

14 procedures for obtaining and utilizing iden15 tification information and criminal history 

16 record information, including the establish17 ment of reasonable fees required to per18 form a criminal history record check and 

19 appropriate safeguards for maintaining 

20 confidentiality and security of the informa21 tion. 

22 ‘‘(D) FORM OF REQUEST.—A submission 

23 under subparagraph (C)(i) shall include such 

24 identification information as is required by the 

25 Attorney General concerning the person about 
34 

†S 1926 ES

1 whom the criminal history record check is re2 quested, and a statement signed by the person 

3 authorizing the Attorney General to provide the 

4 information to the Association and for the As5 sociation to receive the information. 

6 ‘‘(E) PROVISION OF INFORMATION BY AT7 TORNEY GENERAL.—Upon receiving a submis8 sion under subparagraph (C)(i) from the Asso9 ciation, the Attorney General shall search all 

10 criminal history records of the Federal Bureau 

11 of Investigation, including records of the Crimi12 nal Justice Information Services Division of the 

13 Federal Bureau of Investigation, that the At14 torney General determines appropriate for 

15 criminal history records corresponding to the 

16 identification information provided under sub17 paragraph (D) and provide all criminal history 

18 record information included in the request to 

19 the Association. 

20 ‘‘(F) LIMITATION ON PERMISSIBLE USES

21 OF INFORMATION.—Any information provided 

22 to the Association under subparagraph (E) may 

23 only— 
35 

†S 1926 ES

1 ‘‘(i) be used for purposes of deter2 mining compliance with membership cri3 teria established by the Association; 

4 ‘‘(ii) be disclosed to State insurance 

5 regulators, or Federal or State law en6 forcement agencies, in conformance with 

7 applicable law; or 

8 ‘‘(iii) be disclosed, upon request, to 

9 the insurance producer to whom the crimi10 nal history record information relates. 

11 ‘‘(G) PENALTY FOR IMPROPER USE OR

12 DISCLOSURE.—Whoever knowingly uses any in13 formation provided under subparagraph (E) for 

14 a purpose not authorized in subparagraph (F), 

15 or discloses any such information to anyone not 

16 authorized to receive it, shall be fined under 

17 title 18, United States Code, imprisoned for not 

18 more than 2 years, or both. 

19 ‘‘(H) RELIANCE ON INFORMATION.—Nei20 ther the Association nor any of its Board mem21 bers, officers, or employees shall be liable in 

22 any action for using information provided under 

23 subparagraph (E) as permitted under subpara24 graph (F) in good faith and in reasonable reli25 ance on its accuracy. 
36 

†S 1926 ES

1 ‘‘(I) FEES.—The Attorney General may 

2 charge a reasonable fee for conducting the 

3 search and providing the information under 

4 subparagraph (E), and any such fee shall be 

5 collected and remitted by the Association to the 

6 Attorney General. 

7 ‘‘(J) RULE OF CONSTRUCTION.—Nothing 

8 in this paragraph shall be construed as— 

9 ‘‘(i) requiring a State insurance regu10 lator to perform criminal history record 

11 checks under this section; or 

12 ‘‘(ii) limiting any other authority that 

13 allows access to criminal history records. 

14 ‘‘(K) REGULATIONS.—The Attorney Gen15 eral shall prescribe regulations to carry out this 

16 paragraph, which shall include— 

17 ‘‘(i) appropriate protections for ensur18 ing the confidentiality of information pro19 vided under subparagraph (E); and 

20 ‘‘(ii) procedures providing a reason21 able opportunity for an insurance producer 

22 to contest the accuracy of information re23 garding the insurance producer provided 

24 under subparagraph (E). 

25 ‘‘(L) INELIGIBILITY FOR MEMBERSHIP.— 
37 

†S 1926 ES

1 ‘‘(i) IN GENERAL.—The Association 

2 may, under reasonably consistently applied 

3 standards, deny membership to an insur4 ance producer on the basis of criminal his5 tory record information provided under 

6 subparagraph (E), or where the insurance 

7 producer has been subject to disciplinary 

8 action, as described in paragraph (2). 

9 ‘‘(ii) RIGHTS OF APPLICANTS DENIED

10 MEMBERSHIP.—The Association shall no11 tify any insurance producer who is denied 

12 membership on the basis of criminal his13 tory record information provided under 

14 subparagraph (E) of the right of the insur15 ance producer to— 

16 ‘‘(I) obtain a copy of all criminal 

17 history record information provided to 

18 the Association under subparagraph 

19 (E) with respect to the insurance pro20 ducer; and 

21 ‘‘(II) challenge the denial of 

22 membership based on the accuracy 

23 and completeness of the information. 

24 ‘‘(M) DEFINITION.—For purposes of this 

25 paragraph, the term criminal history record 
38 

†S 1926 ES

1 check means a national background check of 

2 criminal history records of the Federal Bureau 

3 of Investigation. 

4 ‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI5 TERIA.—The Association may establish membership cri6 teria that bear a reasonable relationship to the purposes 

7 for which the Association was established. 

8 ‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES

9 OF MEMBERSHIP.— 

10 ‘‘(1) CLASSES OF MEMBERSHIP.—The Associa11 tion may establish separate classes of membership, 

12 with separate criteria, if the Association reasonably 

13 determines that performance of different duties re14 quires different levels of education, training, experi15 ence, or other qualifications. 

16 ‘‘(2) BUSINESS ENTITIES.—The Association 

17 shall establish a class of membership and member18 ship criteria for business entities. A business entity 

19 that applies for membership shall be required to des20 ignate an individual Association member responsible 

21 for the compliance of the business entity with Asso22 ciation standards and the insurance laws, rules, and 

23 regulations of any State in which the business entity 

24 seeks to do business on the basis of Association 

25 membership. 
39 

†S 1926 ES

1 ‘‘(3) CATEGORIES.— 

2 ‘‘(A) SEPARATE CATEGORIES FOR INSUR3 ANCE PRODUCERS PERMITTED.—The Associa4 tion may establish separate categories of mem5 bership for insurance producers and for other 

6 persons or entities within each class, based on 

7 the types of licensing categories that exist 

8 under State laws. 

9 ‘‘(B) SEPARATE TREATMENT FOR DEPOSI10 TORY INSTITUTIONS PROHIBITED.—No special 

11 categories of membership, and no distinct mem12 bership criteria, shall be established for mem13 bers that are depository institutions or for em14 ployees, agents, or affiliates of depository insti15 tutions. 

16 ‘‘(d) MEMBERSHIP CRITERIA.— 

17 ‘‘(1) IN GENERAL.—The Association may estab18 lish criteria for membership which shall include 

19 standards for personal qualifications, education, 

20 training, and experience. The Association shall not 

21 establish criteria that unfairly limit the ability of a 

22 small insurance producer to become a member of the 

23 Association, including imposing discriminatory mem24 bership fees. 
40 

†S 1926 ES

1 ‘‘(2) QUALIFICATIONS.—In establishing criteria 

2 under paragraph (1), the Association shall not adopt 

3 any qualification less protective to the public than 

4 that contained in the National Association of Insur5 ance Commissioners (referred to in this subtitle as 

6 the NAIC) Producer Licensing Model Act in effect 

7 as of the date of enactment of the National Associa8 tion of Registered Agents and Brokers Reform Act 

9 of 2014, and shall consider the highest levels of in10 surance producer qualifications established under 

11 the licensing laws of the States. 

12 ‘‘(3) ASSISTANCE FROM STATES.— 

13 ‘‘(A) IN GENERAL.—The Association may 

14 request a State to provide assistance in inves15 tigating and evaluating the eligibility of a pro16 spective member for membership in the Associa17 tion. 

18 ‘‘(B) AUTHORIZATION OF INFORMATION

19 SHARING.—A submission under subsection 

20 (a)(4)(C)(i) made by an insurance producer li21 censed in a State shall include a statement 

22 signed by the person about whom the assistance 

23 is requested authorizing— 

24 ‘‘(i) the State to share information 

25 with the Association; and 
41 

†S 1926 ES

1 ‘‘(ii) the Association to receive the in2 formation. 

3 ‘‘(C) RULE OF CONSTRUCTION.—Subpara4 graph (A) shall not be construed as requiring or 

5 authorizing any State to adopt new or addi6 tional requirements concerning the licensing or 

7 evaluation of insurance producers. 

8 ‘‘(4) DENIAL OF MEMBERSHIP.—The Associa9 tion may, based on reasonably consistently applied 

10 standards, deny membership to any State-licensed 

11 insurance producer for failure to meet the member12 ship criteria established by the Association. 

13 ‘‘(e) EFFECT OF MEMBERSHIP.— 

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

15 Membership in the Association shall— 

16 ‘‘(A) authorize an insurance producer to 

17 sell, solicit, or negotiate insurance in any State 

18 for which the member pays the licensing fee set 

19 by the State for any line or lines of insurance 

20 specified in the home State license of the insur21 ance producer, and exercise all such incidental 

22 powers as shall be necessary to carry out such 

23 activities, including claims adjustments and set24 tlement to the extent permissible under the laws 

25 of the State, risk management, employee bene-
42 

†S 1926 ES

1 fits advice, retirement planning, and any other 

2 insurance-related consulting activities; 

3 ‘‘(B) be the equivalent of a nonresident in4 surance producer license for purposes of author5 izing the insurance producer to engage in the 

6 activities described in subparagraph (A) in any 

7 State where the member pays the licensing fee; 

8 and 

9 ‘‘(C) be the equivalent of a nonresident in10 surance producer license for the purpose of sub11 jecting an insurance producer to all laws, regu12 lations, provisions or other action of any State 

13 concerning revocation, suspension, or other en14 forcement action related to the ability of a 

15 member to engage in any activity within the 

16 scope of authority granted under this subsection 

17 and to all State laws, regulations, provisions, 

18 and actions preserved under paragraph (5). 

19 ‘‘(2) VIOLENT CRIME CONTROL AND LAW EN20 FORCEMENT ACT OF 1994.—Nothing in this subtitle 

21 shall be construed to alter, modify, or supercede any 

22 requirement established by section 1033 of title 18, 

23 United States Code. 

24 ‘‘(3) AGENT FOR REMITTING FEES.—The Asso25 ciation shall act as an agent for any member for 
43 

†S 1926 ES

1 purposes of remitting licensing fees to any State 

2 pursuant to paragraph (1). 

3 ‘‘(4) NOTIFICATION OF ACTION.— 

4 ‘‘(A) IN GENERAL.—The Association shall 

5 notify the States (including State insurance 

6 regulators) and the NAIC when an insurance 

7 producer has satisfied the membership criteria 

8 of this section. The States (including State in9 surance regulators) shall have 10 business days 

10 after the date of the notification in order to 

11 provide the Association with evidence that the 

12 insurance producer does not satisfy the criteria 

13 for membership in the Association. 

14 ‘‘(B) ONGOING DISCLOSURES REQUIRED.— 

15 On an ongoing basis, the Association shall dis16 close to the States (including State insurance 

17 regulators) and the NAIC a list of the States 

18 in which each member is authorized to operate. 

19 The Association shall immediately notify the 

20 States (including State insurance regulators) 

21 and the NAIC when a member is newly author22 ized to operate in one or more States, or is no 

23 longer authorized to operate in one or more 

24 States on the basis of Association membership. 
44 

†S 1926 ES

1 ‘‘(5) PRESERVATION OF CONSUMER PROTEC2 TION AND MARKET CONDUCT REGULATION.— 

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

4 section shall be construed as altering or affect5 ing the applicability or continuing effectiveness 

6 of any law, regulation, provision, or other action 

7 of any State, including those described in sub8 paragraph (B), to the extent that the State law, 

9 regulation, provision, or other action is not in10 consistent with the provisions of this subtitle re11 lated to market entry for nonresident insurance 

12 producers, and then only to the extent of the in13 consistency. 

14 ‘‘(B) PRESERVED REGULATIONS.—The 

15 laws, regulations, provisions, or other actions of 

16 any State referred to in subparagraph (A) in17 clude laws, regulations, provisions, or other ac18 tions that— 

19 ‘‘(i) regulate market conduct, insur20 ance producer conduct, or unfair trade 

21 practices; 

22 ‘‘(ii) establish consumer protections; 

23 or 
45 

†S 1926 ES

1 ‘‘(iii) require insurance producers to 

2 be appointed by a licensed or authorized 

3 insurer. 

4 ‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso5 ciation shall be renewed on a biennial basis. 

6 ‘‘(g) CONTINUING EDUCATION.— 

7 ‘‘(1) IN GENERAL.—The Association shall es8 tablish, as a condition of membership, continuing 

9 education requirements which shall be comparable to 

10 the continuing education requirements under the li11 censing laws of a majority of the States. 

12 ‘‘(2) STATE CONTINUING EDUCATION REQUIRE13 MENTS.—A member may not be required to satisfy 

14 continuing education requirements imposed under 

15 the laws, regulations, provisions, or actions of any 

16 State other than the home State of the member. 

17 ‘‘(3) RECIPROCITY.—The Association shall not 

18 require a member to satisfy continuing education re19 quirements that are equivalent to any continuing 

20 education requirements of the home State of the 

21 member that have been satisfied by the member dur22 ing the applicable licensing period. 

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

24 Association shall not directly or indirectly offer any 
46 

†S 1926 ES

1 continuing education courses for insurance pro2 ducers. 

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

4 ‘‘(1) DISCIPLINARY ACTION.—The Association 

5 may place an insurance producer that is a member 

6 of the Association on probation or suspend or revoke 

7 the membership of the insurance producer in the As8 sociation, or assess monetary fines or penalties, as 

9 the Association determines to be appropriate, if— 

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

11 the applicable membership criteria or other 

12 standards established by the Association; 

13 ‘‘(B) the insurance producer has been sub14 ject to disciplinary action pursuant to a final 

15 adjudicatory proceeding under the jurisdiction 

16 of a State insurance regulator; 

17 ‘‘(C) an insurance license held by the in18 surance producer has been suspended or re19 voked by a State insurance regulator; or 

20 ‘‘(D) the insurance producer has been con21 victed of a crime that would have resulted in 

22 the denial of membership pursuant to sub23 section (a)(4)(L)(i) at the time of application, 

24 and the Association has received a copy of the 
47 

†S 1926 ES

1 final disposition from a court of competent ju2 risdiction. 

3 ‘‘(2) VIOLATIONS OF ASSOCIATION STAND4 ARDS.—The Association shall have the power to in5 vestigate alleged violations of Association standards. 

6 ‘‘(3) REPORTING.—The Association shall imme7 diately notify the States (including State insurance 

8 regulators) and the NAIC when the membership of 

9 an insurance producer has been placed on probation 

10 or has been suspended, revoked, or otherwise termi11 nated, or when the Association has assessed mone12 tary fines or penalties. 

13 ‘‘(i) CONSUMER COMPLAINTS.— 

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

15 ‘‘(A) refer any complaint against a mem16 ber of the Association from a consumer relating 

17 to alleged misconduct or violations of State in18 surance laws to the State insurance regulator 

19 where the consumer resides and, when appro20 priate, to any additional State insurance regu21 lator, as determined by standards adopted by 

22 the Association; and 

23 ‘‘(B) make any related records and infor24 mation available to each State insurance regu25 lator to whom the complaint is forwarded. 
48 

†S 1926 ES

1 ‘‘(2) TELEPHONE AND OTHER ACCESS.—The 

2 Association shall maintain a toll-free number for 

3 purposes of this subsection and, as practicable, other 

4 alternative means of communication with consumers, 

5 such as an Internet webpage. 

6 ‘‘(3) FINAL DISPOSITION OF INVESTIGATION.— 

7 State insurance regulators shall provide the Associa8 tion with information regarding the final disposition 

9 of a complaint referred pursuant to paragraph 

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

11 State to release confidential investigation reports or 

12 other information protected by State law to the As13 sociation. 

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

15 may— 

16 ‘‘(1) share documents, materials, or other infor17 mation, including confidential and privileged docu18 ments, with a State, Federal, or international gov19 ernmental entity or with the NAIC or other appro20 priate entity referenced in paragraphs (3) and (4), 

21 provided that the recipient has the authority and 

22 agrees to maintain the confidentiality or privileged 

23 status of the document, material, or other informa24 tion; 
49 

†S 1926 ES

1 ‘‘(2) limit the sharing of information as re2 quired under this subtitle with the NAIC or any 

3 other non-governmental entity, in circumstances 

4 under which the Association determines that the 

5 sharing of such information is unnecessary to fur6 ther the purposes of this subtitle; 

7 ‘‘(3) establish a central clearinghouse, or utilize 

8 the NAIC or another appropriate entity, as deter9 mined by the Association, as a central clearinghouse, 

10 for use by the Association and the States (including 

11 State insurance regulators), through which members 

12 of the Association may disclose their intent to oper13 ate in 1 or more States and pay the licensing fees 

14 to the appropriate States; and 

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

16 or another appropriate entity, as determined by the 

17 Association, as a database, for use by the Associa18 tion and the States (including State insurance regu19 lators) for the collection of regulatory information 

20 concerning the activities of insurance producers. 

21 ‘‘(k) EFFECTIVE DATE.—The provisions of this sec22 tion shall take effect on the later of— 

23 ‘‘(1) the expiration of the 2-year period begin24 ning on the date of enactment of the National Asso-
50 

†S 1926 ES

1 ciation of Registered Agents and Brokers Reform 

2 Act of 2014; and 

3 ‘‘(2) the date of incorporation of the Associa4 tion. 

5 ‘‘SEC. 324. BOARD OF DIRECTORS. 

6 ‘‘(a) ESTABLISHMENT.—There is established a board 

7 of directors of the Association, which shall have authority 

8 to govern and supervise all activities of the Association. 

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

10 powers and authority of the Association as may be speci11 fied in the bylaws of the Association. 

12 ‘‘(c) COMPOSITION.— 

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

14 13 members who shall be appointed by the Presi15 dent, by and with the advice and consent of the Sen16 ate, in accordance with the procedures established 

17 under Senate Resolution 116 of the 112th Congress, 

18 of whom— 

19 ‘‘(A) 8 shall be State insurance commis20 sioners appointed in the manner provided in 

21 paragraph (2), 1 of whom shall be designated 

22 by the President to serve as the chairperson of 

23 the Board until the Board elects one such State 

24 insurance commissioner Board member to serve 

25 as the chairperson of the Board; 
51 

†S 1926 ES

1 ‘‘(B) 3 shall have demonstrated expertise 

2 and experience with property and casualty in3 surance producer licensing; and 

4 ‘‘(C) 2 shall have demonstrated expertise 

5 and experience with life or health insurance 

6 producer licensing. 

7 ‘‘(2) STATE INSURANCE REGULATOR REP8 RESENTATIVES.— 

9 ‘‘(A) RECOMMENDATIONS.—Before making 

10 any appointments pursuant to paragraph 

11 (1)(A), the President shall request a list of rec12 ommended candidates from the States through 

13 the NAIC, which shall not be binding on the 

14 President. If the NAIC fails to submit a list of 

15 recommendations not later than 15 business 

16 days after the date of the request, the President 

17 may make the requisite appointments without 

18 considering the views of the NAIC. 

19 ‘‘(B) POLITICAL AFFILIATION.—Not more 

20 than 4 Board members appointed under para21 graph (1)(A) shall belong to the same political 

22 party. 

23 ‘‘(C) FORMER STATE INSURANCE COMMIS24 SIONERS.— 
52 

†S 1926 ES

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

2 each currently serving State insurance 

3 commissioner an appointment to the 

4 Board, fewer than 8 State insurance com5 missioners have accepted appointment to 

6 the Board, the President may appoint the 

7 remaining State insurance commissioner 

8 Board members, as required under para9 graph (1)(A), of the appropriate political 

10 party as required under subparagraph (B), 

11 from among individuals who are former 

12 State insurance commissioners. 

13 ‘‘(ii) LIMITATION.—A former State 

14 insurance commissioner appointed as de15 scribed in clause (i) may not be employed 

16 by or have any present direct or indirect fi17 nancial interest in any insurer, insurance 

18 producer, or other entity in the insurance 

19 industry, other than direct or indirect own20 ership of, or beneficial interest in, an in21 surance policy or annuity contract written 

22 or sold by an insurer. 

23 ‘‘(D) SERVICE THROUGH TERM.—If a 

24 Board member appointed under paragraph 

25 (1)(A) ceases to be a State insurance commis-
53 

†S 1926 ES

1 sioner during the term of the Board member, 

2 the Board member shall cease to be a Board 

3 member. 

4 ‘‘(3) PRIVATE SECTOR REPRESENTATIVES.—In 

5 making any appointment pursuant to subparagraphs 

6 (B) and (C) of paragraph (1), the President may 

7 seek recommendations for candidates from groups 

8 representing the category of individuals described, 

9 which shall not be binding on the President. 

10 ‘‘(4) STATE INSURANCE COMMISSIONER DE11 FINED.—For purposes of this subsection, the term 

12 State insurance commissioner means a person who 

13 serves in the position in State government, or on the 

14 board, commission, or other body that is the primary 

15 insurance regulatory authority for the State. 

16 ‘‘(d) TERMS.— 

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

18 paragraph (2), the term of service for each Board 

19 member shall be 2 years. 

20 ‘‘(2) EXCEPTIONS.— 

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

22 shall be 1 year, as designated by the President 

23 at the time of the nomination of the subject 

24 Board members for— 
54 

†S 1926 ES

1 ‘‘(i) 4 of the State insurance commis2 sioner Board members initially appointed 

3 under paragraph (1)(A), of whom not more 

4 than 2 shall belong to the same political 

5 party; 

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

7 appointed under paragraph (1)(B); and 

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

9 appointed under paragraph (1)(C). 

10 ‘‘(B) EXPIRATION OF TERM.—A Board 

11 member may continue to serve after the expira12 tion of the term to which the Board member 

13 was appointed for the earlier of 2 years or until 

14 a successor is appointed. 

15 ‘‘(C) MID-TERM APPOINTMENTS.—A 

16 Board member appointed to fill a vacancy oc17 curring before the expiration of the term for 

18 which the predecessor of the Board member 

19 was appointed shall be appointed only for the 

20 remainder of that term. 

21 ‘‘(3) SUCCESSIVE TERMS.—Board members 

22 may be reappointed to successive terms. 

23 ‘‘(e) INITIAL APPOINTMENTS.—The appointment of 

24 initial Board members shall be made no later than 90 days 
55 

†S 1926 ES

1 after the date of enactment of the National Association 

2 of Registered Agents and Brokers Reform Act of 2014. 

3 ‘‘(f) MEETINGS.— 

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

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

6 ‘‘(B) as requested in writing to the chair7 person by not fewer than 5 Board members; or 

8 ‘‘(C) as otherwise provided by the bylaws 

9 of the Association. 

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

11 Board members shall constitute a quorum. 

12 ‘‘(3) VOTING.—Decisions of the Board shall re13 quire the approval of a majority of all Board mem14 bers present at a meeting, a quorum being present. 

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

16 its first meeting not later than 45 days after the 

17 date on which all initial Board members have been 

18 appointed. 

19 ‘‘(g) RESTRICTION ON CONFIDENTIAL INFORMA20 TION.—Board members appointed pursuant to subpara21 graphs (B) and (C) of subsection (c)(1) shall not have ac22 cess to confidential information received by the Associa23 tion in connection with complaints, investigations, or dis24 ciplinary proceedings involving insurance producers. 
56 

†S 1926 ES

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

2 Board shall issue and enforce an ethical conduct code to 

3 address permissible and prohibited activities of Board 

4 members and Association officers, employees, agents, or 

5 consultants. The code shall, at a minimum, include provi6 sions that prohibit any Board member or Association offi7 cer, employee, agent or consultant from— 

8 ‘‘(1) engaging in unethical conduct in the 

9 course of performing Association duties; 

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

11 the making of any Association decision, the outcome 

12 of which the Board member, officer, employee, 

13 agent, or consultant knows or had reason to know 

14 would have a reasonably foreseeable material finan15 cial effect, distinguishable from its effect on the pub16 lic generally, on the person or a member of the im17 mediate family of the person; 

18 ‘‘(3) accepting any gift from any person or enti19 ty other than the Association that is given because 

20 of the position held by the person in the Association; 

21 ‘‘(4) making political contributions to any per22 son or entity on behalf of the Association; and 

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

24 behalf of the Association. 

25 ‘‘(i) COMPENSATION.— 
57 

†S 1926 ES

1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), no Board member may receive any com3 pensation from the Association or any other person 

4 or entity on account of Board membership. 

5 ‘‘(2) TRAVEL EXPENSES AND PER DIEM.— 

6 Board members may be reimbursed only by the As7 sociation for travel expenses, including per diem in 

8 lieu of subsistence, at rates consistent with rates au9 thorized for employees of Federal agencies under 

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

11 Code, while away from home or regular places of 

12 business in performance of services for the Associa13 tion. 

14 ‘‘SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY AC15 TIONS. 

16 ‘‘(a) ADOPTION AND AMENDMENT OF BYLAWS AND

17 STANDARDS.— 

18 ‘‘(1) PROCEDURES.—The Association shall 

19 adopt procedures for the adoption of bylaws and 

20 standards that are similar to procedures under sub21 chapter II of chapter 5 of title 5, United States 

22 Code (commonly known as the Administrative Proce23 dure Act). 

24 ‘‘(2) COPY REQUIRED TO BE FILED.—The 

25 Board shall submit to the President, through the 
58 

†S 1926 ES

1 Department of the Treasury, and the States (includ2 ing State insurance regulators), and shall publish on 

3 the website of the Association, all proposed bylaws 

4 and standards of the Association, or any proposed 

5 amendment to the bylaws or standards of the Asso6 ciation, accompanied by a concise general statement 

7 of the basis and purpose of such proposal. 

8 ‘‘(3) EFFECTIVE DATE.—Any proposed bylaw 

9 or standard of the Association, and any proposed 

10 amendment to the bylaws or standards of the Asso11 ciation, shall take effect, after notice under para12 graph (2) and opportunity for public comment, on 

13 such date as the Association may designate, unless 

14 suspended under section 329(c). 

15 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

16 this section shall be construed to subject the Board 

17 or the Association to the requirements of subchapter 

18 II of chapter 5 of title 5, United States Code (com19 monly known as the Administrative Procedure Act). 

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

21 ‘‘(1) SPECIFICATION OF CHARGES.—In any pro22 ceeding to determine whether membership shall be 

23 denied, suspended, revoked, or not renewed, or to 

24 determine whether a member of the Association 

25 should be placed on probation (referred to in this 
59 

†S 1926 ES

1 section as a disciplinary action) or whether to assess 

2 fines or monetary penalties, the Association shall 

3 bring specific charges, notify the member of the 

4 charges, give the member an opportunity to defend 

5 against the charges, and keep a record. 

6 ‘‘(2) SUPPORTING STATEMENT.—A determina7 tion to take disciplinary action shall be supported by 

8 a statement setting forth— 

9 ‘‘(A) any act or practice in which the mem10 ber has been found to have been engaged; 

11 ‘‘(B) the specific provision of this subtitle 

12 or standard of the Association that any such 

13 act or practice is deemed to violate; and 

14 ‘‘(C) the sanction imposed and the reason 

15 for the sanction. 

16 ‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REP17 RESENTATIVES.—Board members appointed pursu18 ant to section 324(c)(3) may not— 

19 ‘‘(A) participate in any disciplinary action 

20 or be counted toward establishing a quorum 

21 during a disciplinary action; and 

22 ‘‘(B) have access to confidential informa23 tion concerning any disciplinary action. 
60 

†S 1926 ES

1 ‘‘SEC. 326. POWERS. 

2 ‘‘In addition to all the powers conferred upon a non3 profit corporation by the District of Columbia Nonprofit 

4 Corporation Act, the Association shall have the power to— 

5 ‘‘(1) establish and collect such membership fees 

6 as the Association finds necessary to impose to cover 

7 the costs of its operations; 

8 ‘‘(2) adopt, amend, and repeal bylaws, proce9 dures, or standards governing the conduct of Asso10 ciation business and performance of its duties; 

11 ‘‘(3) establish procedures for providing notice 

12 and opportunity for comment pursuant to section 

13 325(a); 

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

15 necessary to carry out the duties of the Association; 

16 ‘‘(5) hire employees, professionals, or special17 ists, and elect or appoint officers, and to fix their 

18 compensation, define their duties and give them ap19 propriate authority to carry out the purposes of this 

20 subtitle, and determine their qualification; 

21 ‘‘(6) establish personnel policies of the Associa22 tion and programs relating to, among other things, 

23 conflicts of interest, rates of compensation, where 

24 applicable, and qualifications of personnel; 

25 ‘‘(7) borrow money; and 
61 

†S 1926 ES

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

2 Association determines to be necessary and appro3 priate to organize and begin operations of the Asso4 ciation, which shall be treated as loans to be repaid 

5 by the Association with interest at market rate. 

6 ‘‘SEC. 327. REPORT BY THE ASSOCIATION. 

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

8 close of each fiscal year, the Association shall submit to 

9 the President, through the Department of the Treasury, 

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

11 shall publish on the website of the Association, a written 

12 report regarding the conduct of its business, and the exer13 cise of the other rights and powers granted by this sub14 title, during such fiscal year. 

15 ‘‘(b) FINANCIAL STATEMENTS.—Each report sub16 mitted under subsection (a) with respect to any fiscal year 

17 shall include audited financial statements setting forth the 

18 financial position of the Association at the end of such 

19 fiscal year and the results of its operations (including the 

20 source and application of its funds) for such fiscal year. 

21 ‘‘SEC. 328. LIABILITY OF THE ASSOCIATION AND THE 

22 BOARD MEMBERS, OFFICERS, AND EMPLOY23 EES OF THE ASSOCIATION. 

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

25 deemed to be an insurer or insurance producer within the 
62 

†S 1926 ES

1 meaning of any State law, rule, regulation, or order regu2 lating or taxing insurers, insurance producers, or other en3 tities engaged in the business of insurance, including pro4 visions imposing premium taxes, regulating insurer sol5 vency or financial condition, establishing guaranty funds 

6 and levying assessments, or requiring claims settlement 

7 practices. 

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

9 AND EMPLOYEES.—No Board member, officer, or em10 ployee of the Association shall be personally liable to any 

11 person for any action taken or omitted in good faith in 

12 any matter within the scope of their responsibilities in con13 nection with the Association. 

14 ‘‘SEC. 329. PRESIDENTIAL OVERSIGHT. 

15 ‘‘(a) REMOVAL OF BOARD.—If the President deter16 mines that the Association is acting in a manner contrary 

17 to the interests of the public or the purposes of this sub18 title or has failed to perform its duties under this subtitle, 

19 the President may remove the entire existing Board for 

20 the remainder of the term to which the Board members 

21 were appointed and appoint, in accordance with section 

22 324 and with the advice and consent of the Senate, in 

23 accordance with the procedures established under Senate 

24 Resolution 116 of the 112th Congress, new Board mem-
63 

†S 1926 ES

1 bers to fill the vacancies on the Board for the remainder 

2 of the terms. 

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

4 may remove a Board member only for neglect of duty or 

5 malfeasance in office. 

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

7 PROHIBITION OF ACTIONS.—Following notice to the 

8 Board, the President, or a person designated by the Presi9 dent for such purpose, may suspend the effectiveness of 

10 any bylaw or standard, or prohibit any action, of the Asso11 ciation that the President or the designee determines is 

12 contrary to the purposes of this subtitle. 

13 ‘‘SEC. 330. RELATIONSHIP TO STATE LAW. 

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

15 regulations, provisions, or other actions purporting to reg16 ulate insurance producers shall be preempted to the extent 

17 provided in subsection (b). 

18 ‘‘(b) PROHIBITED ACTIONS.— 

19 ‘‘(1) IN GENERAL.—No State shall— 

20 ‘‘(A) impede the activities of, take any ac21 tion against, or apply any provision of law or 

22 regulation arbitrarily or discriminatorily to, any 

23 insurance producer because that insurance pro24 ducer or any affiliate plans to become, has ap-
64 

†S 1926 ES

1 plied to become, or is a member of the Associa2 tion; 

3 ‘‘(B) impose any requirement upon a mem4 ber of the Association that it pay fees different 

5 from those required to be paid to that State 

6 were it not a member of the Association; or 

7 ‘‘(C) impose any continuing education re8 quirements on any nonresident insurance pro9 ducer that is a member of the Association. 

10 ‘‘(2) STATES OTHER THAN A HOME STATE.— 

11 No State, other than the home State of a member 

12 of the Association, shall— 

13 ‘‘(A) impose any licensing, personal or cor14 porate qualifications, education, training, expe15 rience, residency, continuing education, or 

16 bonding requirement upon a member of the As17 sociation that is different from the criteria for 

18 membership in the Association or renewal of 

19 such membership; 

20 ‘‘(B) impose any requirement upon a mem21 ber of the Association that it be licensed, reg22 istered, or otherwise qualified to do business or 

23 remain in good standing in the State, including 

24 any requirement that the insurance producer 
65 

†S 1926 ES

1 register as a foreign company with the sec2 retary of state or equivalent State official; 

3 ‘‘(C) require that a member of the Associa4 tion submit to a criminal history record check 

5 as a condition of doing business in the State; or 

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

7 appointment requirements upon a member of 

8 the Association, or require a member of the As9 sociation to be authorized to operate as an in10 surance producer, in order to sell, solicit, or ne11 gotiate insurance for commercial property and 

12 casualty risks to an insured with risks located 

13 in more than one State, if the member is li14 censed or otherwise authorized to operate in the 

15 State where the insured maintains its principal 

16 place of business and the contract of insurance 

17 insures risks located in that State. 

18 ‘‘(3) PRESERVATION OF STATE DISCIPLINARY

19 AUTHORITY.—Nothing in this section may be con20 strued to prohibit a State from investigating and 

21 taking appropriate disciplinary action, including sus22 pension or revocation of authority of an insurance 

23 producer to do business in a State, in accordance 

24 with State law and that is not inconsistent with the 

25 provisions of this section, against a member of the 
66 

†S 1926 ES

1 Association as a result of a complaint or for any al2 leged activity, regardless of whether the activity oc3 curred before or after the insurance producer com4 menced doing business in the State pursuant to As5 sociation membership. 

6 ‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY 

7 REGULATORY AUTHORITY. 

8 ‘‘The Association shall coordinate with the Financial 

9 Industry Regulatory Authority in order to ease any admin10 istrative burdens that fall on members of the Association 

11 that are subject to regulation by the Financial Industry 

12 Regulatory Authority, consistent with the requirements of 

13 this subtitle and the Federal securities laws. 

14 ‘‘SEC. 332. RIGHT OF ACTION. 

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

16 a decision or action of the Association may, after reason17 ably exhausting available avenues for resolution within the 

18 Association, commence a civil action in an appropriate 

19 United States district court, and obtain all appropriate re20 lief. 

21 ‘‘(b) ASSOCIATION INTERPRETATIONS.—In any ac22 tion under subsection (a), the court shall give appropriate 

23 weight to the interpretation of the Association of its by24 laws and standards and this subtitle. 
67 

†S 1926 ES

1 ‘‘SEC. 333. FEDERAL FUNDING PROHIBITED. 

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

3 any amounts from the Federal Government to pay for, or 

4 reimburse the Association for, the costs of establishing or 

5 operating the Association. 

6 ‘‘SEC. 334. DEFINITIONS. 

7 ‘‘For purposes of this subtitle, the following defini8 tions shall apply: 

9 ‘‘(1) BUSINESS ENTITY.—The term business 

10 entity means a corporation, association, partnership, 

11 limited liability company, limited liability partner12 ship, or other legal entity. 

13 ‘‘(2) DEPOSITORY INSTITUTION.—The term de14 pository institution has the meaning as in section 3 

15 of the Federal Deposit Insurance Act (12 U.S.C. 

16 1813). 

17 ‘‘(3) HOME STATE.—The term home State 

18 means the State in which the insurance producer 

19 maintains its principal place of residence or business 

20 and is licensed to act as an insurance producer. 

21 ‘‘(4) INSURANCE.—The term insurance means 

22 any product, other than title insurance or bail 

23 bonds, defined or regulated as insurance by the ap24 propriate State insurance regulatory authority. 

25 ‘‘(5) INSURANCE PRODUCER.—The term insur26 ance producer means any insurance agent or broker, 
68 

†S 1926 ES

1 excess or surplus lines broker or agent, insurance 

2 consultant, limited insurance representative, and any 

3 other individual or entity that sells, solicits, or nego4 tiates policies of insurance or offers advice, counsel, 

5 opinions or services related to insurance. 

6 ‘‘(6) INSURER.—The term insurer has the 

7 meaning as in section 313(e)(2)(B) of title 31, 

8 United States Code. 

9 ‘‘(7) PRINCIPAL PLACE OF BUSINESS.—The 

10 term principal place of business means the State in 

11 which an insurance producer maintains the head12 quarters of the insurance producer and, in the case 

13 of a business entity, where high-level officers of the 

14 entity direct, control, and coordinate the business 

15 activities of the business entity. 

16 ‘‘(8) PRINCIPAL PLACE OF RESIDENCE.—The 

17 term principal place of residence means the State in 

18 which an insurance producer resides for the greatest 

19 number of days during a calendar year. 

20 ‘‘(9) STATE.—The term State includes any 

21 State, the District of Columbia, any territory of the 

22 United States, and Puerto Rico, Guam, American 

23 Samoa, the Trust Territory of the Pacific Islands, 

24 the Virgin Islands, and the Northern Mariana Is25 lands. 
69 

†S 1926 ES

1 ‘‘(10) STATE LAW.— 

2 ‘‘(A) IN GENERAL.—The term State law 

3 includes all laws, decisions, rules, regulations, 

4 or other State action having the effect of law, 

5 of any State. 

6 ‘‘(B) LAWS APPLICABLE IN THE DISTRICT

7 OF COLUMBIA.—A law of the United States ap8 plicable only to or within the District of Colum9 bia shall be treated as a State law rather than 

10 a law of the United States.’’. 

11 (b) TECHNICAL AMENDMENT.—The table of contents 

12 for the Gramm-Leach-Bliley Act is amended by striking 

13 the items relating to subtitle C of title III and inserting 

14 the following new items: 

‘‘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. 
70 

†S 1926 ES

‘‘Sec. 333. Federal funding prohibited. 

‘‘Sec. 334. Definitions.’’. 

Passed the Senate January 30, 2014. 

Attest: 

Secretary. 

113TH CONGRESS 

2D SESSION S. 1926 

AN ACT 

To delay the implementation of certain provisions 

other purposes. tion of Registered Agents and Brokers, and for Act of 2012 and to reform the National Associaof the Biggert-Waters Flood Insurance Reform