I 

114TH CONGRESS 

1ST SESSION H. R. 26 

To extend the termination date of the Terrorism Insurance Program established under the Terrorism Risk Insurance Act of 2002, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2015 

Mr. NEUGEBAUER (for himself and Mr. GOSAR) introduced the following bill; 

which was referred to the Committee on Financial Services, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To extend the termination date of the Terrorism Insurance 

Program established under the Terrorism Risk Insurance 

Act of 2002, 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, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

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

5 ‘‘Terrorism Risk Insurance Program Reauthorization Act 

6 of 2015’’. 

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

8 this Act is as follows: 


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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. 

1 TITLE I—EXTENSION OF TER2 RORISM INSURANCE PRO3 GRAM 

4 SEC. 101. EXTENSION OF TERRORISM INSURANCE PRO5 GRAM. 

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

7 of 2002 (15 U.S.C. 6701 note) is amended by striking 

8 ‘‘December 31, 2014’’ and inserting ‘‘December 31, 

9 2020’’. 


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1 SEC. 102. FEDERAL SHARE. 

2 Section 103(e)(1)(A) of the Terrorism Risk Insur3 ance Act of 2002 (15 U.S.C. 6701 note) is amended by 

4 inserting ‘‘and beginning on January 1, 2016, shall de5 crease by 1 percentage point per calendar year until equal 

6 to 80 percent’’ after ‘‘85 percent’’. 

7 SEC. 103. PROGRAM TRIGGER. 

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

9 6701 note) is amended in the matter preceding clause 

10 (i)— 

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

12 ‘‘certified acts’’; 

13 (2) by striking ‘‘such certified act’’ and insert14 ing ‘‘such certified acts’’; and 

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

16 through clause (ii) and inserting the following: ‘‘ex17 ceed— 

18 ‘‘(i) $100,000,000, with respect to 

19 such insured losses occurring in calendar 

20 year 2015; 

21 ‘‘(ii) $120,000,000, with respect to 

22 such insured losses occurring in calendar 

23 year 2016; 

24 ‘‘(iii) $140,000,000, with respect to 

25 such insured losses occurring in calendar 

26 year 2017; 


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1 ‘‘(iv) $160,000,000, with respect to 

2 such insured losses occurring in calendar 

3 year 2018; 

4 ‘‘(v) $180,000,000, with respect to 

5 such insured losses occurring in calendar 

6 year 2019; and 

7 ‘‘(vi) $200,000,000, with respect to 

8 such insured losses occurring in calendar 

9 year 2020 and any calendar year there10 after.’’. 

11 SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COM12 PENSATION UNDER THE PROGRAM. 

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

14 of 2002 (15 U.S.C. 6701 note) is amended— 

15 (1) by amending paragraph (6) to read as fol16 lows: 

17 ‘‘(6) INSURANCE MARKETPLACE AGGREGATE

18 RETENTION AMOUNT.— 

19 ‘‘(A) IN GENERAL.—For purposes of para20 graph (7), the insurance marketplace aggregate 

21 retention amount shall be the lesser of— 

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

23 is revised pursuant to this paragraph; and 


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1 ‘‘(ii) the aggregate amount, for all in2 surers, of insured losses during such cal3 endar year. 

4 ‘‘(B) REVISION OF INSURANCE MARKET5 PLACE AGGREGATE RETENTION AMOUNT.— 

6 ‘‘(i) PHASE-IN.—Beginning in the cal7 endar year of enactment of the Terrorism 

8 Risk Insurance Program Reauthorization 

9 Act of 2015, the amount set forth under 

10 subparagraph (A)(i) shall increase by 

11 $2,000,000,000 per calendar year until 

12 equal to $37,500,000,000. 

13 ‘‘(ii) FURTHER REVISION.—Beginning 

14 in the calendar year that follows the cal15 endar year in which the amount set forth 

16 under subparagraph (A)(i) is equal to 

17 $37,500,000,000, the amount under sub18 paragraph (A)(i) shall be revised to be the 

19 amount equal to the annual average of the 

20 sum of insurer deductibles for all insurers 

21 participating in the Program for the prior 

22 3 calendar years, as such sum is deter23 mined by the Secretary under subpara24 graph (C). 


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1 ‘‘(C) RULEMAKING.—Not later than 3 

2 years after the date of enactment of the Ter3 rorism Risk Insurance Program Reauthoriza4 tion Act of 2015, the Secretary shall— 

5 ‘‘(i) issue final rules for determining 

6 the amount of the sum described under 

7 subparagraph (B)(ii); and 

8 ‘‘(ii) provide a timeline for public noti9 fication of such determination.’’; and 

10 (2) in paragraph (7)— 

11 (A) in subparagraph (A)— 

12 (i) in the matter preceding clause (i), 

13 by striking ‘‘for each of the periods re14 ferred to in subparagraphs (A) through 

15 (E) of paragraph (6)’’; and 

16 (ii) in clause (i), by striking ‘‘for such 

17 period’’; 

18 (B) by striking subparagraph (B) and in19 serting the following: 

20 ‘‘(B) [Reserved.]’’; 

21 (C) in subparagraph (C)— 

22 (i) by striking ‘‘occurring during any 

23 of the periods referred to in any of sub24 paragraphs (A) through (E) of paragraph 

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1 miums in an amount equal to 133 percent’’ 

2 and inserting ‘‘, terrorism loss risk-spread3 ing premiums in an amount equal to 140 

4 percent’’; and 

5 (ii) by inserting ‘‘as calculated under 

6 subparagraph (A)’’ after ‘‘mandatory 

7 recoupment amount’’; and 

8 (D) in subparagraph (E)(i)— 

9 (i) in subclause (I)— 

10 (I) by striking ‘‘2010’’ and in11 serting ‘‘2017’’; and 

12 (II) by striking ‘‘2012’’ and in13 serting ‘‘2019’’; 

14 (ii) in subclause (II)— 

15 (I) by striking ‘‘2011’’ and in16 serting ‘‘2018’’; 

17 (II) by striking ‘‘2012’’ and in18 serting ‘‘2019’’; and 

19 (III) by striking ‘‘2017’’ and in20 serting ‘‘2024’’; and 

21 (iii) in subclause (III)— 

22 (I) by striking ‘‘2012’’ and in23 serting ‘‘2019’’; and 

24 (II) by striking ‘‘2017’’ and in25 serting ‘‘2024’’. 


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1 SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CON2 SULTATION WITH SECRETARY OF HOMELAND 

3 SECURITY. 

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

5 note) is amended in the matter preceding clause (i), by 

6 striking ‘‘concurrence with the Secretary of State’’ and in7 serting ‘‘consultation with the Secretary of Homeland Se8 curity’’. 

9 SEC. 106. TECHNICAL AMENDMENTS. 

10 The Terrorism Risk Insurance Act of 2002 (15 

11 U.S.C. 6701 note) is amended— 

12 (1) in section 102— 

13 (A) in paragraph (3)— 

14 (i) by redesignating subparagraphs 

15 (A), (B), and (C) as clauses (i), (ii), and 

16 (iii), respectively; 

17 (ii) in the matter preceding clause (i) 

18 (as so redesignated), by striking ‘‘An enti19 ty has’’ and inserting the following: 

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

21 (iii) by adding at the end the fol22 lowing new subparagraph: 

23 ‘‘(B) RULE OF CONSTRUCTION.—An enti24 ty, including any affiliate thereof, does not have 

25 ‘control’ over another entity, if, as of the date 

26 of enactment of the Terrorism Risk Insurance 


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1 Program Reauthorization Act of 2015, the enti2 ty is acting as an attorney-in-fact, as defined by 

3 the Secretary, for the other entity and such 

4 other entity is a reciprocal insurer, provided 

5 that the entity is not, for reasons other than 

6 the attorney-in-fact relationship, defined as hav7 ing ‘control’ under subparagraph (A).’’; 

8 (B) in paragraph (7)— 

9 (i) by striking subparagraphs (A) 

10 through (F) and inserting the following: 

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

12 earned premiums during the immediately pre13 ceding calendar year, multiplied by 20 percent; 

14 and’’; 

15 (ii) by redesignating subparagraph 

16 (G) as subparagraph (B); and 

17 (iii) in subparagraph (B), as so redes18 ignated by clause (ii)— 

19 (I) by striking ‘‘notwithstanding 

20 subparagraphs (A) through (F), for 

21 the Transition Period or any Program 

22 Year’’ and inserting ‘‘notwithstanding 

23 subparagraph (A), for any calendar 

24 year’’; and 


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1 (II) by striking ‘‘Period or Pro2 gram Year’’ and inserting ‘‘calendar 

3 year’’; 

4 (C) by striking paragraph (11); and 

5 (D) by redesignating paragraphs (12) 

6 through (16) as paragraphs (11) through (15), 

7 respectively; and 

8 (2) in section 103— 

9 (A) in subsection (b)(2)— 

10 (i) in subparagraph (B), by striking ‘‘, 

11 purchase,’’; and 

12 (ii) in subparagraph (C), by striking 

13 ‘‘, purchase,’’; 

14 (B) in subsection (c), by striking ‘‘Pro15 gram Year’’ and inserting ‘‘calendar year’’; 

16 (C) in subsection (e)— 

17 (i) in paragraph (1)(A), as previously 

18 amended by section 102— 

19 (I) by striking ‘‘the Transition 

20 Period and each Program Year 

21 through Program Year 4 shall be 

22 equal to 90 percent, and during Pro23 gram Year 5 and each Program Year 

24 thereafter’’ and inserting ‘‘each cal25 endar year’’; 


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1 (II) by striking the comma after 

2 ‘‘80 percent’’; and 

3 (III) by striking ‘‘such Transition 

4 Period or such Program Year’’ and 

5 inserting ‘‘such calendar year’’; 

6 (ii) in paragraph (2)(A), by striking 

7 ‘‘the period beginning on the first day of 

8 the Transition Period and ending on the 

9 last day of Program Year 1, or during any 

10 Program Year thereafter’’ and inserting ‘‘a 

11 calendar year’’; and 

12 (iii) in paragraph (3), by striking ‘‘the 

13 period beginning on the first day of the 

14 Transition Period and ending on the last 

15 day of Program Year 1, or during any 

16 other Program Year’’ and inserting ‘‘any 

17 calendar year’’; and 

18 (D) in subsection (g)(2)— 

19 (i) by striking ‘‘the Transition Period 

20 or a Program Year’’ each place that term 

21 appears and inserting ‘‘the calendar year’’; 

22 (ii) by striking ‘‘such period’’ and in23 serting ‘‘the calendar year’’; and 

24 (iii) by striking ‘‘that period’’ and in25 serting ‘‘the calendar year’’. 


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1 SEC. 107. IMPROVING THE CERTIFICATION PROCESS. 

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

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

4 meaning as in section 102(1) of the Terrorism Risk 

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

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

7 process by which the Secretary determines whether 

8 to certify an act as an act of terrorism under section 

9 102(1) of the Terrorism Risk Insurance Act of 2002 

10 (15 U.S.C. 6701 note); and 

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

12 of the Treasury. 

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

14 of enactment of this Act, the Secretary shall conduct and 

15 complete a study on the certification process. 

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

17 subsection (a) shall include an examination and analysis 

18 of— 

19 (1) the establishment of a reasonable timeline 

20 by which the Secretary must make an accurate de21 termination on whether to certify an act as an act 

22 of terrorism; 

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

24 proposed to be established under paragraph (1) may 

25 have on the insurance industry, policyholders, con26 sumers, and taxpayers as a whole; 


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1 (3) the factors the Secretary would evaluate 

2 and monitor during the certification process, includ3 ing the ability of the Secretary to obtain the re4 quired information regarding the amount of pro5 jected and incurred losses resulting from an act 

6 which the Secretary would need in determining 

7 whether to certify the act as an act of terrorism; 

8 (4) the appropriateness, efficiency, and effec9 tiveness of the consultation process required under 

10 section 102(1)(A) of the Terrorism Risk Insurance 

11 Act of 2002 (15 U.S.C. 6701 note) and any rec12 ommendations on changes to the consultation proc13 ess; and 

14 (5) the ability of the Secretary to provide guid15 ance and updates to the public regarding any act 

16 that may reasonably be certified as an act of ter17 rorism. 

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

19 under subsection (a), the Secretary shall submit a report 

20 on the results of such study to the Committee on Banking, 

21 Housing, and Urban Affairs of the Senate and the Com22 mittee on Financial Services of the House of Representa23 tives. 


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1 (e) RULEMAKING.—Section 102(1) of the Terrorism 

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

3 amended— 

4 (1) by redesignating subparagraph (D) as sub5 paragraph (E); and 

6 (2) by inserting after subparagraph (C) the fol7 lowing: 

8 ‘‘(D) TIMING OF CERTIFICATION.—Not 

9 later than 9 months after the report required 

10 under section 107 of the Terrorism Risk Insur11 ance Program Reauthorization Act of 2015 is 

12 submitted to the appropriate committees of 

13 Congress, the Secretary shall issue final rules 

14 governing the certification process, including es15 tablishing a timeline for which an act is eligible 

16 for certification by the Secretary on whether an 

17 act is an act of terrorism under this para18 graph.’’. 

19 SEC. 108. GAO STUDY. 

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

21 of enactment of this Act, the Comptroller General of the 

22 United States shall complete a study on the viability and 

23 effects of the Federal Government— 

24 (1) assessing and collecting upfront premiums 

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1 ance Program established under the Terrorism Risk 

2 Insurance Act of 2002 (15 U.S.C. 6701 note) (here3 after in this section referred to as the ‘‘Program’’), 

4 which shall include a comparison of practices in 

5 international markets to assess and collect premiums 

6 either before or after terrorism losses are incurred; 

7 and 

8 (2) creating a capital reserve fund under the 

9 Program and requiring insurers participating in the 

10 Program to dedicate capital specifically for terrorism 

11 losses before such losses are incurred, which shall in12 clude a comparison of practices in international mar13 kets to establish reserve funds. 

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

15 subsection (a) shall examine, but shall not be limited to, 

16 the following issues: 

17 (1) UPFRONT PREMIUMS.—With respect to up18 front premiums described in subsection (a)(1)— 

19 (A) how the Federal Government could de20 termine the price of such upfront premiums on 

21 insurers that participate in the Program; 

22 (B) how the Federal Government could col23 lect and manage such upfront premiums; 

24 (C) how the Federal Government could en25 sure that such upfront premiums are not spent 


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1 for purposes other than claims through the Pro2 gram; 

3 (D) how the assessment and collection of 

4 such upfront premiums could affect take-up 

5 rates for terrorism risk coverage in different re6 gions and industries and how it could impact 

7 small businesses and consumers in both metro8 politan and non-metropolitan areas; 

9 (E) the effect of collecting such upfront 

10 premiums on insurers both large and small; 

11 (F) the effect of collecting such upfront 

12 premiums on the private market for terrorism 

13 risk reinsurance; and 

14 (G) the size of any Federal Government 

15 subsidy insurers may receive through their par16 ticipation in the Program, taking into account 

17 the Program’s current post-event recoupment 

18 structure. 

19 (2) CAPITAL RESERVE FUND.—With respect to 

20 the capital reserve fund described in subsection 

21 (a)(2)— 

22 (A) how the creation of a capital reserve 

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1 ance Program and the ability of the Program to 

2 meet its statutory purposes; 

3 (B) how a capital reserve fund would im4 pact insurers and reinsurers, including liquidity, 

5 insurance pricing, and capacity to provide ter6 rorism risk coverage; 

7 (C) the feasibility of segregating funds at8 tributable to terrorism risk from funds attrib9 utable to other insurance lines; 

10 (D) how a capital reserve fund would be 

11 viewed and treated under current Financial Ac12 counting Standards Board accounting rules and 

13 the tax laws; and 

14 (E) how a capital reserve fund would affect 

15 the States’ ability to regulate insurers partici16 pating in the Program. 

17 (3) INTERNATIONAL PRACTICES.—With respect 

18 to international markets referred to in paragraphs 

19 (1) and (2) of subsection (a), how other countries, 

20 if any— 

21 (A) have established terrorism insurance 

22 structures; 

23 (B) charge premiums or otherwise collect 

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1 ance structures, including risk and administra2 tive costs; and 

3 (C) have established capital reserve funds 

4 to pay for the costs of terrorism insurance 

5 structures. 

6 (c) REPORT.—Upon completion of the study required 

7 under subsection (a), the Comptroller General shall sub8 mit a report on the results of such study to the Committee 

9 on Banking, Housing, and Urban Affairs of the Senate 

10 and the Committee on Financial Services of the House of 

11 Representatives. 

12 (d) PUBLIC AVAILABILITY.—The study and report 

13 required under this section shall be made available to the 

14 public in electronic form and shall be published on the 

15 website of the Government Accountability Office. 

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

17 FEDERAL RESERVE SYSTEM. 

18 (a) IN GENERAL.—The first undesignated paragraph 

19 of section 10 of the Federal Reserve Act (12 U.S.C. 241) 

20 is amended by inserting after the second sentence the fol21 lowing: ‘‘In selecting members of the Board, the President 

22 shall appoint at least 1 member with demonstrated pri23 mary experience working in or supervising community 

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


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall take effect on the date of enactment of 

3 this Act and apply to appointments made on and after 

4 that effective date, excluding any nomination pending in 

5 the Senate on that date. 

6 SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECH7 ANISMS. 

8 (a) FINDING; RULE OF CONSTRUCTION.— 

9 (1) FINDING.—Congress finds that it is desir10 able to encourage the growth of nongovernmental, 

11 private market reinsurance capacity for protection 

12 against losses arising from acts of terrorism. 

13 (2) RULE OF CONSTRUCTION.—Nothing in this 

14 Act, any amendment made by this Act, or the Ter15 rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 

16 note) shall prohibit insurers from developing risk17 sharing mechanisms to voluntarily reinsure terrorism 

18 losses between and among themselves. 

19 (b) ADVISORY COMMITTEE ON RISK-SHARING MECH20 ANISMS.— 

21 (1) ESTABLISHMENT.—The Secretary of the 

22 Treasury shall establish and appoint an advisory 

23 committee to be known as the ‘‘Advisory Committee 

24 on Risk-Sharing Mechanisms’’ (referred to in this 

25 subsection as the ‘‘Advisory Committee’’). 


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1 (2) DUTIES.—The Advisory Committee shall 

2 provide advice, recommendations, and encourage3 ment with respect to the creation and development 

4 of the nongovernmental risk-sharing mechanisms de5 scribed under subsection (a). 

6 (3) MEMBERSHIP.—The Advisory Committee 

7 shall be composed of 9 members who are directors, 

8 officers, or other employees of insurers, reinsurers, 

9 or capital market participants that are participating 

10 or that desire to participate in the nongovernmental 

11 risk-sharing mechanisms described under subsection 

12 (a), and who are representative of the affected sec13 tors of the insurance industry, including commercial 

14 property insurance, commercial casualty insurance, 

15 reinsurance, and alternative risk transfer industries. 

16 SEC. 111. REPORTING OF TERRORISM INSURANCE DATA. 

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

18 adding at the end the following new subsection: 

19 ‘‘(h) REPORTING OF TERRORISM INSURANCE

20 DATA.— 

21 ‘‘(1) AUTHORITY.—During the calendar year 

22 beginning on January 1, 2016, and in each calendar 

23 year thereafter, the Secretary shall require insurers 

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1 erage for terrorism losses of such insurers as the 

2 Secretary considers appropriate to analyze the effec3 tiveness of the Program, which shall include infor4 mation regarding— 

5 ‘‘(A) lines of insurance with exposure to 

6 such losses; 

7 ‘‘(B) premiums earned on such coverage; 

8 ‘‘(C) geographical location of exposures; 

9 ‘‘(D) pricing of such coverage; 

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

11 ‘‘(F) the amount of private reinsurance for 

12 acts of terrorism purchased; and 

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

14 considers appropriate. 

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

16 and every other June 30 thereafter, the Secretary 

17 shall submit a report to the Committee on Financial 

18 Services of the House of Representatives and the 

19 Committee on Banking, Housing, and Urban Affairs 

20 of the Senate that includes— 

21 ‘‘(A) an analysis of the overall effectiveness 

22 of the Program; 

23 ‘‘(B) an evaluation of any changes or 

24 trends in the data collected under paragraph 

25 (1); 


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1 ‘‘(C) an evaluation of whether any aspects 

2 of the Program have the effect of discouraging 

3 or impeding insurers from providing commercial 

4 property casualty insurance coverage or cov5 erage for acts of terrorism; 

6 ‘‘(D) an evaluation of the impact of the 

7 Program on workers’ compensation insurers; 

8 and 

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

10 paragraph (1)(B), an updated estimate of the 

11 total amount earned since January 1, 2003. 

12 ‘‘(3) PROTECTION OF DATA.—To the extent 

13 possible, the Secretary shall contract with an insur14 ance statistical aggregator to collect the information 

15 described in paragraph (1), which shall keep any 

16 nonpublic information confidential and provide it to 

17 the Secretary in an aggregate form or in such other 

18 form or manner that does not permit identification 

19 of the insurer submitting such information. 

20 ‘‘(4) ADVANCE COORDINATION.—Before col21 lecting any data or information under paragraph (1) 

22 from an insurer, or affiliate of an insurer, the Sec23 retary shall coordinate with the appropriate State in24 surance regulatory authorities and any relevant gov25 ernment agency or publicly available sources to deVerDate Sep 11 2014 04:17 Jan 07, 2015 Jkt 049200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 termine if the information to be collected is available 

2 from, and may be obtained in a timely manner by, 

3 individually or collectively, such entities. If the Sec4 retary determines that such data or information is 

5 available, and may be obtained in a timely matter, 

6 from such entities, the Secretary shall obtain the 

7 data or information from such entities. If the Sec8 retary determines that such data or information is 

9 not so available, the Secretary may collect such data 

10 or information from an insurer and affiliates. 

11 ‘‘(5) CONFIDENTIALITY.— 

12 ‘‘(A) RETENTION OF PRIVILEGE.—The 

13 submission of any non-publicly available data 

14 and information to the Secretary and the shar15 ing of any non-publicly available data with or 

16 by the Secretary among other Federal agencies, 

17 the State insurance regulatory authorities, or 

18 any other entities under this subsection shall 

19 not constitute a waiver of, or otherwise affect, 

20 any privilege arising under Federal or State law 

21 (including the rules of any Federal or State 

22 court) to which the data or information is oth23 erwise subject. 

24 ‘‘(B) CONTINUED APPLICATION OF PRIOR

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1 ment under Federal or State law to the extent 

2 otherwise applicable, or any requirement pursu3 ant to a written agreement in effect between 

4 the original source of any non-publicly available 

5 data or information and the source of such data 

6 or information to the Secretary, regarding the 

7 privacy or confidentiality of any data or infor8 mation in the possession of the source to the 

9 Secretary, shall continue to apply to such data 

10 or information after the data or information 

11 has been provided pursuant to this subsection. 

12 ‘‘(C) INFORMATION-SHARING AGREE13 MENT.—Any data or information obtained by 

14 the Secretary under this subsection may be 

15 made available to State insurance regulatory 

16 authorities, individually or collectively through 

17 an information-sharing agreement that— 

18 ‘‘(i) shall comply with applicable Fed19 eral law; and 

20 ‘‘(ii) shall not constitute a waiver of, 

21 or otherwise affect, any privilege under 

22 Federal or State law (including any privi23 lege referred to in subparagraph (A) and 

24 the rules of any Federal or State court) to 


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1 which the data or information is otherwise 

2 subject. 

3 ‘‘(D) AGENCY DISCLOSURE REQUIRE4 MENTS.—Section 552 of title 5, United States 

5 Code, including any exceptions thereunder, shall 

6 apply to any data or information submitted 

7 under this subsection to the Secretary by an in8 surer or affiliate of an insurer.’’. 

9 SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET 

10 COMPETITIVENESS. 

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

12 adding at the end the following new subsection: 

13 ‘‘(h) STUDY OF SMALL INSURER MARKET COMPETI14 TIVENESS.— 

15 ‘‘(1) IN GENERAL.—Not later than June 30, 

16 2017, and every other June 30 thereafter, the Sec17 retary shall conduct a study of small insurers (as 

18 such term is defined by regulation by the Secretary) 

19 participating in the Program, and identify any com20 petitive challenges small insurers face in the ter21 rorism risk insurance marketplace, including— 

22 ‘‘(A) changes to the market share, pre23 mium volume, and policyholder surplus of small 

24 insurers relative to large insurers; 


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1 ‘‘(B) how the property and casualty insur2 ance market for terrorism risk differs between 

3 small and large insurers, and whether such a 

4 difference exists within other perils; 

5 ‘‘(C) the impact of the Program’s manda6 tory availability requirement under section 

7 103(c) on small insurers; 

8 ‘‘(D) the effect of increasing the trigger 

9 amount for the Program under section 

10 103(e)(1)(B) on small insurers; 

11 ‘‘(E) the availability and cost of private re12 insurance for small insurers; and 

13 ‘‘(F) the impact that State workers com14 pensation laws have on small insurers and 

15 workers compensation carriers in the terrorism 

16 risk insurance marketplace. 

17 ‘‘(2) REPORT.—The Secretary shall submit a 

18 report to the Congress setting forth the findings and 

19 conclusions of each study required under paragraph 

20 (1).’’. 


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1 TITLE II—NATIONAL ASSOCIA2 TION OF REGISTERED 

3 AGENTS AND BROKERS RE4 FORM 

5 SEC. 201. SHORT TITLE. 

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

7 of Registered Agents and Brokers Reform Act of 2015’’. 

8 SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIA9 TION OF REGISTERED AGENTS AND BRO10 KERS. 

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

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

13 amended to read as follows: 

14 ‘‘Subtitle C—National Association 

15 of Registered Agents and Brokers 

16 ‘‘SEC. 321. NATIONAL ASSOCIATION OF REGISTERED 

17 AGENTS AND BROKERS. 

18 ‘‘(a) ESTABLISHMENT.—There is established the Na19 tional Association of Registered Agents and Brokers (re20 ferred to in this subtitle as the ‘Association’). 

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

22 ‘‘(1) be a nonprofit corporation; 

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

24 Federal Government; 


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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 


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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 


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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). 


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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 finger6 prints or other identification information 

7 obtained from the insurance producer, and 

8 a request for a criminal history record 

9 check of the insurance producer, to the 

10 Federal Bureau of 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 fin15 gerprints or other identification informa16 tion and criminal history record informa17 tion, including the establishment of reason18 able fees to defray the expenses of the As19 sociation in connection with the perform20 ance of a criminal history record check and 

21 appropriate safeguards for maintaining 

22 confidentiality and security of the informa23 tion. Any fees charged pursuant to this 

24 clause shall be separate and distinct from 


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1 those charged by the Attorney General 

2 pursuant to subparagraph (I). 

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

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

5 fingerprints or other identification information 

6 as is required by the Attorney General con7 cerning the person about whom the criminal 

8 history record check is requested, and a state9 ment signed by the person authorizing the At10 torney General to provide the information to 

11 the Association and for the Association to re12 ceive the information. 

13 ‘‘(E) PROVISION OF INFORMATION BY AT14 TORNEY GENERAL.—Upon receiving a submis15 sion under subparagraph (C)(i) from the Asso16 ciation, the Attorney General shall search all 

17 criminal history records of the Federal Bureau 

18 of Investigation, including records of the Crimi19 nal Justice Information Services Division of the 

20 Federal Bureau of Investigation, that the At21 torney General determines appropriate for 

22 criminal history records corresponding to the 

23 fingerprints or other identification information 

24 provided under subparagraph (D) and provide 


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1 all criminal history record information included 

2 in the request to the Association. 

3 ‘‘(F) LIMITATION ON PERMISSIBLE USES

4 OF INFORMATION.—Any information provided 

5 to the Association under subparagraph (E) may 

6 only— 

7 ‘‘(i) be used for purposes of deter8 mining compliance with membership cri9 teria established by the Association; 

10 ‘‘(ii) be disclosed to State insurance 

11 regulators, or Federal or State law en12 forcement agencies, in conformance with 

13 applicable law; or 

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

15 the insurance producer to whom the crimi16 nal history record information relates. 

17 ‘‘(G) PENALTY FOR IMPROPER USE OR

18 DISCLOSURE.—Whoever knowingly uses any in19 formation provided under subparagraph (E) for 

20 a purpose not authorized in subparagraph (F), 

21 or discloses any such information to anyone not 

22 authorized to receive it, shall be fined not more 

23 than $50,000 per violation as determined by a 

24 court of competent jurisdiction. 


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1 ‘‘(H) RELIANCE ON INFORMATION.—Nei2 ther the Association nor any of its Board mem3 bers, officers, or employees shall be liable in 

4 any action for using information provided under 

5 subparagraph (E) as permitted under subpara6 graph (F) in good faith and in reasonable reli7 ance on its accuracy. 

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

9 charge a reasonable fee for conducting the 

10 search and providing the information under 

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

12 collected and remitted by the Association to the 

13 Attorney General. 

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

15 in this paragraph shall be construed as— 

16 ‘‘(i) requiring a State insurance regu17 lator to perform criminal history record 

18 checks under this section; or 

19 ‘‘(ii) limiting any other authority that 

20 allows access to criminal history records. 

21 ‘‘(K) REGULATIONS.—The Attorney Gen22 eral shall prescribe regulations to carry out this 

23 paragraph, which shall include— 


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1 ‘‘(i) appropriate protections for ensur2 ing the confidentiality of information pro3 vided under subparagraph (E); and 

4 ‘‘(ii) procedures providing a reason5 able opportunity for an insurance producer 

6 to contest the accuracy of information re7 garding the insurance producer provided 

8 under subparagraph (E). 

9 ‘‘(L) INELIGIBILITY FOR MEMBERSHIP.— 

10 ‘‘(i) IN GENERAL.—The Association 

11 may, under reasonably consistently applied 

12 standards, deny membership to an insur13 ance producer on the basis of criminal his14 tory record information provided under 

15 subparagraph (E), or where the insurance 

16 producer has been subject to disciplinary 

17 action, as described in paragraph (2). 

18 ‘‘(ii) RIGHTS OF APPLICANTS DENIED

19 MEMBERSHIP.—The Association shall no20 tify any insurance producer who is denied 

21 membership on the basis of criminal his22 tory record information provided under 

23 subparagraph (E) of the right of the insur24 ance producer to— 


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

2 history record information provided to 

3 the Association under subparagraph 

4 (E) with respect to the insurance pro5 ducer; and 

6 ‘‘(II) challenge the denial of 

7 membership based on the accuracy 

8 and completeness of the information. 

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

10 paragraph, the term ‘criminal history record 

11 check’ means a national background check of 

12 criminal history records of the Federal Bureau 

13 of Investigation. 

14 ‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI15 TERIA.—The Association may establish membership cri16 teria that bear a reasonable relationship to the purposes 

17 for which the Association was established. 

18 ‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES

19 OF MEMBERSHIP.— 

20 ‘‘(1) CLASSES OF MEMBERSHIP.—The Associa21 tion may establish separate classes of membership, 

22 with separate criteria, if the Association reasonably 

23 determines that performance of different duties re24 quires different levels of education, training, experi25 ence, or other qualifications. 


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

2 shall establish a class of membership and member3 ship criteria for business entities. A business entity 

4 that applies for membership shall be required to des5 ignate an individual Association member responsible 

6 for the compliance of the business entity with Asso7 ciation standards and the insurance laws, standards, 

8 and regulations of any State in which the business 

9 entity seeks to do business on the basis of Associa10 tion membership. 

11 ‘‘(3) CATEGORIES.— 

12 ‘‘(A) SEPARATE CATEGORIES FOR INSUR13 ANCE PRODUCERS PERMITTED.—The Associa14 tion may establish separate categories of mem15 bership for insurance producers and for other 

16 persons or entities within each class, based on 

17 the types of licensing categories that exist 

18 under State laws. 

19 ‘‘(B) SEPARATE TREATMENT FOR DEPOSI20 TORY INSTITUTIONS PROHIBITED.—No special 

21 categories of membership, and no distinct mem22 bership criteria, shall be established for mem23 bers that are depository institutions or for em24 ployees, agents, or affiliates of depository insti25 tutions. 


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1 ‘‘(d) MEMBERSHIP CRITERIA.— 

2 ‘‘(1) IN GENERAL.—The Association may estab3 lish criteria for membership which shall include 

4 standards for personal qualifications, education, 

5 training, and experience. The Association shall not 

6 establish criteria that unfairly limit the ability of a 

7 small insurance producer to become a member of the 

8 Association, including imposing discriminatory mem9 bership fees. 

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

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

12 any qualification less protective to the public than 

13 that contained in the National Association of Insur14 ance Commissioners (referred to in this subtitle as 

15 the ‘NAIC’) Producer Licensing Model Act in effect 

16 as of the date of enactment of the National Associa17 tion of Registered Agents and Brokers Reform Act 

18 of 2015, and shall consider the highest levels of in19 surance producer qualifications established under 

20 the licensing laws of the States. 

21 ‘‘(3) ASSISTANCE FROM STATES.— 

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

23 request a State to provide assistance in inves24 tigating and evaluating the eligibility of a proVerDate Sep 11 2014 04:17 Jan 07, 2015 Jkt 049200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 spective member for membership in the Associa2 tion. 

3 ‘‘(B) AUTHORIZATION OF INFORMATION

4 SHARING.—A submission under subsection 

5 (a)(4)(C)(i) made by an insurance producer li6 censed in a State shall include a statement 

7 signed by the person about whom the assistance 

8 is requested authorizing— 

9 ‘‘(i) the State to share information 

10 with the Association; and 

11 ‘‘(ii) the Association to receive the in12 formation. 

13 ‘‘(C) RULE OF CONSTRUCTION.—Subpara14 graph (A) shall not be construed as requiring or 

15 authorizing any State to adopt new or addi16 tional requirements concerning the licensing or 

17 evaluation of insurance producers. 

18 ‘‘(4) DENIAL OF MEMBERSHIP.—The Associa19 tion may, based on reasonably consistently applied 

20 standards, deny membership to any State-licensed 

21 insurance producer for failure to meet the member22 ship criteria established by the Association. 

23 ‘‘(e) EFFECT OF MEMBERSHIP.— 

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

25 Membership in the Association shall— 


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1 ‘‘(A) authorize an insurance producer to 

2 sell, solicit, or negotiate insurance in any State 

3 for which the member pays the licensing fee set 

4 by the State for any line or lines of insurance 

5 specified in the home State license of the insur6 ance producer, and exercise all such incidental 

7 powers as shall be necessary to carry out such 

8 activities, including claims adjustments and set9 tlement to the extent permissible under the laws 

10 of the State, risk management, employee bene11 fits advice, retirement planning, and any other 

12 insurance-related consulting activities; 

13 ‘‘(B) be the equivalent of a nonresident in14 surance producer license for purposes of author15 izing the insurance producer to engage in the 

16 activities described in subparagraph (A) in any 

17 State where the member pays the licensing fee; 

18 and 

19 ‘‘(C) be the equivalent of a nonresident in20 surance producer license for the purpose of sub21 jecting an insurance producer to all laws, regu22 lations, provisions or other action of any State 

23 concerning revocation, suspension, or other en24 forcement action related to the ability of a 

25 member to engage in any activity within the 


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1 scope of authority granted under this subsection 

2 and to all State laws, regulations, provisions, 

3 and actions preserved under paragraph (5). 

4 ‘‘(2) VIOLENT CRIME CONTROL AND LAW EN5 FORCEMENT ACT OF 1994.—Nothing in this subtitle 

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

7 requirement established by section 1033 of title 18, 

8 United States Code. 

9 ‘‘(3) AGENT FOR REMITTING FEES.—The Asso10 ciation shall act as an agent for any member for 

11 purposes of remitting licensing fees to any State 

12 pursuant to paragraph (1). 

13 ‘‘(4) NOTIFICATION OF ACTION.— 

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

15 notify the States (including State insurance 

16 regulators) and the NAIC when an insurance 

17 producer has satisfied the membership criteria 

18 of this section. The States (including State in19 surance regulators) shall have 10 business days 

20 after the date of the notification in order to 

21 provide the Association with evidence that the 

22 insurance producer does not satisfy the criteria 

23 for membership in the Association. 

24 ‘‘(B) ONGOING DISCLOSURES REQUIRED.— 

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1 close to the States (including State insurance 

2 regulators) and the NAIC a list of the States 

3 in which each member is authorized to operate. 

4 The Association shall immediately notify the 

5 States (including State insurance regulators) 

6 and the NAIC when a member is newly author7 ized to operate in one or more States, or is no 

8 longer authorized to operate in one or more 

9 States on the basis of Association membership. 

10 ‘‘(5) PRESERVATION OF CONSUMER PROTEC11 TION AND MARKET CONDUCT REGULATION.— 

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

13 section shall be construed as altering or affect14 ing the applicability or continuing effectiveness 

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

16 of any State, including those described in sub17 paragraph (B), to the extent that the State law, 

18 regulation, provision, or other action is not in19 consistent with the provisions of this subtitle re20 lated to market entry for nonresident insurance 

21 producers, and then only to the extent of the in22 consistency. 

23 ‘‘(B) PRESERVED REGULATIONS.—The 

24 laws, regulations, provisions, or other actions of 

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1 clude laws, regulations, provisions, or other ac2 tions that— 

3 ‘‘(i) regulate market conduct, insur4 ance producer conduct, or unfair trade 

5 practices; 

6 ‘‘(ii) establish consumer protections; 

7 or 

8 ‘‘(iii) require insurance producers to 

9 be appointed by a licensed or authorized 

10 insurer. 

11 ‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso12 ciation shall be renewed on a biennial basis. 

13 ‘‘(g) CONTINUING EDUCATION.— 

14 ‘‘(1) IN GENERAL.—The Association shall es15 tablish, as a condition of membership, continuing 

16 education requirements which shall be comparable to 

17 the continuing education requirements under the li18 censing laws of a majority of the States. 

19 ‘‘(2) STATE CONTINUING EDUCATION REQUIRE20 MENTS.—A member may not be required to satisfy 

21 continuing education requirements imposed under 

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

23 State other than the home State of the member. 

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

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1 quirements that are equivalent to any continuing 

2 education requirements of the home State of the 

3 member that have been satisfied by the member dur4 ing the applicable licensing period. 

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

6 Association shall not directly or indirectly offer any 

7 continuing education courses for insurance pro8 ducers. 

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

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

11 may place an insurance producer that is a member 

12 of the Association on probation or suspend or revoke 

13 the membership of the insurance producer in the As14 sociation, or assess monetary fines or penalties, as 

15 the Association determines to be appropriate, if— 

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

17 the applicable membership criteria or other 

18 standards established by the Association; 

19 ‘‘(B) the insurance producer has been sub20 ject to disciplinary action pursuant to a final 

21 adjudicatory proceeding under the jurisdiction 

22 of a State insurance regulator; 

23 ‘‘(C) an insurance license held by the in24 surance producer has been suspended or re25 voked by a State insurance regulator; or 


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1 ‘‘(D) the insurance producer has been con2 victed of a crime that would have resulted in 

3 the denial of membership pursuant to sub4 section (a)(4)(L)(i) at the time of application, 

5 and the Association has received a copy of the 

6 final disposition from a court of competent ju7 risdiction. 

8 ‘‘(2) VIOLATIONS OF ASSOCIATION STAND9 ARDS.—The Association shall have the power to in10 vestigate alleged violations of Association standards. 

11 ‘‘(3) REPORTING.—The Association shall imme12 diately notify the States (including State insurance 

13 regulators) and the NAIC when the membership of 

14 an insurance producer has been placed on probation 

15 or has been suspended, revoked, or otherwise termi16 nated, or when the Association has assessed mone17 tary fines or penalties. 

18 ‘‘(i) CONSUMER COMPLAINTS.— 

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

20 ‘‘(A) refer any complaint against a mem21 ber of the Association from a consumer relating 

22 to alleged misconduct or violations of State in23 surance laws to the State insurance regulator 

24 where the consumer resides and, when appro25 priate, to any additional State insurance reguVerDate Sep 11 2014 04:17 Jan 07, 2015 Jkt 049200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 lator, as determined by standards adopted by 

2 the Association; and 

3 ‘‘(B) make any related records and infor4 mation available to each State insurance regu5 lator to whom the complaint is forwarded. 

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

7 Association shall maintain a toll-free number for 

8 purposes of this subsection and, as practicable, other 

9 alternative means of communication with consumers, 

10 such as an Internet webpage. 

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

12 State insurance regulators shall provide the Associa13 tion with information regarding the final disposition 

14 of a complaint referred pursuant to paragraph 

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

16 State to release confidential investigation reports or 

17 other information protected by State law to the As18 sociation. 

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

20 may— 

21 ‘‘(1) share documents, materials, or other infor22 mation, including confidential and privileged docu23 ments, with a State, Federal, or international gov24 ernmental entity or with the NAIC or other appro25 priate entity referred to paragraphs (3) and (4), 


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1 provided that the recipient has the authority and 

2 agrees to maintain the confidentiality or privileged 

3 status of the document, material, or other informa4 tion; 

5 ‘‘(2) limit the sharing of information as re6 quired under this subtitle with the NAIC or any 

7 other non-governmental entity, in circumstances 

8 under which the Association determines that the 

9 sharing of such information is unnecessary to fur10 ther the purposes of this subtitle; 

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

12 the NAIC or another appropriate entity, as deter13 mined by the Association, as a central clearinghouse, 

14 for use by the Association and the States (including 

15 State insurance regulators), through which members 

16 of the Association may disclose their intent to oper17 ate in 1 or more States and pay the licensing fees 

18 to the appropriate States; and 

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

20 or another appropriate entity, as determined by the 

21 Association, as a database, for use by the Associa22 tion and the States (including State insurance regu23 lators) for the collection of regulatory information 

24 concerning the activities of insurance producers. 


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1 ‘‘(k) EFFECTIVE DATE.—The provisions of this sec2 tion shall take effect on the later of— 

3 ‘‘(1) the expiration of the 2-year period begin4 ning on the date of enactment of the National Asso5 ciation of Registered Agents and Brokers Reform 

6 Act of 2015; and 

7 ‘‘(2) the date of incorporation of the Associa8 tion. 

9 ‘‘SEC. 324. BOARD OF DIRECTORS. 

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

11 of directors of the Association, which shall have authority 

12 to govern and supervise all activities of the Association. 

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

14 powers and authority of the Association as may be speci15 fied in the bylaws of the Association. 

16 ‘‘(c) COMPOSITION.— 

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

18 13 members who shall be appointed by the Presi19 dent, by and with the advice and consent of the Sen20 ate, in accordance with the procedures established 

21 under Senate Resolution 116 of the 112th Congress, 

22 of whom— 

23 ‘‘(A) 8 shall be State insurance commis24 sioners appointed in the manner provided in 

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


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1 by the President to serve as the chairperson of 

2 the Board until the Board elects one such State 

3 insurance commissioner Board member to serve 

4 as the chairperson of the Board; 

5 ‘‘(B) 3 shall have demonstrated expertise 

6 and experience with property and casualty in7 surance producer licensing; and 

8 ‘‘(C) 2 shall have demonstrated expertise 

9 and experience with life or health insurance 

10 producer licensing. 

11 ‘‘(2) STATE INSURANCE REGULATOR REP12 RESENTATIVES.— 

13 ‘‘(A) RECOMMENDATIONS.—Before making 

14 any appointments pursuant to paragraph 

15 (1)(A), the President shall request a list of rec16 ommended candidates from the States through 

17 the NAIC, which shall not be binding on the 

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

19 recommendations not later than 15 business 

20 days after the date of the request, the President 

21 may make the requisite appointments without 

22 considering the views of the NAIC. 

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

24 than 4 Board members appointed under paraVerDate Sep 11 2014 04:17 Jan 07, 2015 Jkt 049200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 graph (1)(A) shall belong to the same political 

2 party. 

3 ‘‘(C) FORMER STATE INSURANCE COMMIS4 SIONERS.— 

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

6 each currently serving State insurance 

7 commissioner an appointment to the 

8 Board, fewer than 8 State insurance com9 missioners have accepted appointment to 

10 the Board, the President may appoint the 

11 remaining State insurance commissioner 

12 Board members, as required under para13 graph (1)(A), of the appropriate political 

14 party as required under subparagraph (B), 

15 from among individuals who are former 

16 State insurance commissioners. 

17 ‘‘(ii) LIMITATION.—A former State 

18 insurance commissioner appointed as de19 scribed in clause (i) may not be employed 

20 by or have any present direct or indirect fi21 nancial interest in any insurer, insurance 

22 producer, or other entity in the insurance 

23 industry, other than direct or indirect own24 ership of, or beneficial interest in, an inVerDate Sep 11 2014 04:17 Jan 07, 2015 Jkt 049200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 surance policy or annuity contract written 

2 or sold by an insurer. 

3 ‘‘(D) SERVICE THROUGH TERM.—If a 

4 Board member appointed under paragraph 

5 (1)(A) ceases to be a State insurance commis6 sioner during the term of the Board member, 

7 the Board member shall cease to be a Board 

8 member. 

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

10 making any appointment pursuant to subparagraph 

11 (B) or (C) of paragraph (1), the President may seek 

12 recommendations for candidates from groups rep13 resenting the category of individuals described, 

14 which shall not be binding on the President. 

15 ‘‘(4) STATE INSURANCE COMMISSIONER DE16 FINED.—For purposes of this subsection, the term 

17 ‘State insurance commissioner’ means a person who 

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

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

20 insurance regulatory authority for the State. 

21 ‘‘(d) TERMS.— 

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

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

24 member shall be 2 years. 

25 ‘‘(2) EXCEPTIONS.— 


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

2 shall be 1 year, as designated by the President 

3 at the time of the nomination of the subject 

4 Board members for— 

5 ‘‘(i) 4 of the State insurance commis6 sioner Board members initially appointed 

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

8 than 2 shall belong to the same political 

9 party; 

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

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

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

13 appointed under paragraph (1)(C). 

14 ‘‘(B) EXPIRATION OF TERM.—A Board 

15 member may continue to serve after the expira16 tion of the term to which the Board member 

17 was appointed for the earlier of 2 years or until 

18 a successor is appointed. 

19 ‘‘(C) MID-TERM APPOINTMENTS.—A 

20 Board member appointed to fill a vacancy oc21 curring before the expiration of the term for 

22 which the predecessor of the Board member 

23 was appointed shall be appointed only for the 

24 remainder of that term. 


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

2 may be reappointed to successive terms. 

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

4 initial Board members shall be made no later than 90 days 

5 after the date of enactment of the National Association 

6 of Registered Agents and Brokers Reform Act of 2015. 

7 ‘‘(f) MEETINGS.— 

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

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

10 ‘‘(B) as requested in writing to the chair11 person by not fewer than 5 Board members; or 

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

13 of the Association. 

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

15 Board members shall constitute a quorum. 

16 ‘‘(3) VOTING.—Decisions of the Board shall re17 quire the approval of a majority of all Board mem18 bers present at a meeting, a quorum being present. 

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

20 its first meeting not later than 45 days after the 

21 date on which all initial Board members have been 

22 appointed. 

23 ‘‘(g) RESTRICTION ON CONFIDENTIAL INFORMA24 TION.—Board members appointed pursuant to subpara25 graphs (B) and (C) of subsection (c)(1) shall not have acVerDate Sep 11 2014 04:17 Jan 07, 2015 Jkt 049200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H26.IH H26

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1 cess to confidential information received by the Associa2 tion in connection with complaints, investigations, or dis3 ciplinary proceedings involving insurance producers. 

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

5 Board shall issue and enforce an ethical conduct code to 

6 address permissible and prohibited activities of Board 

7 members and Association officers, employees, agents, or 

8 consultants. The code shall, at a minimum, include provi9 sions that prohibit any Board member or Association offi10 cer, employee, agent or consultant from— 

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

12 course of performing Association duties; 

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

14 the making of any Association decision, the outcome 

15 of which the Board member, officer, employee, 

16 agent, or consultant knows or had reason to know 

17 would have a reasonably foreseeable material finan18 cial effect, distinguishable from its effect on the pub19 lic generally, on the person or a member of the im20 mediate family of the person; 

21 ‘‘(3) accepting any gift from any person or enti22 ty other than the Association that is given because 

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

24 ‘‘(4) making political contributions to any per25 son or entity on behalf of the Association; and 


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

2 behalf of the Association. 

3 ‘‘(i) COMPENSATION.— 

4 ‘‘(1) IN GENERAL.—Except as provided in para5 graph (2), no Board member may receive any com6 pensation from the Association or any other person 

7 or entity on account of Board membership. 

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

9 Board members may be reimbursed only by the As10 sociation for travel expenses, including per diem in 

11 lieu of subsistence, at rates consistent with rates au12 thorized for employees of Federal agencies under 

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

14 Code, while away from home or regular places of 

15 business in performance of services for the Associa16 tion. 

17 ‘‘SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY AC18 TIONS. 

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

20 STANDARDS.— 

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

22 adopt procedures for the adoption of bylaws and 

23 standards that are similar to procedures under sub24 chapter II of chapter 5 of title 5, United States 


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1 Code (commonly known as the ‘Administrative Pro2 cedure Act’). 

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

4 Board shall submit to the President, through the 

5 Department of the Treasury, and the States (includ6 ing State insurance regulators), and shall publish on 

7 the website of the Association, all proposed bylaws 

8 and standards of the Association, or any proposed 

9 amendment to the bylaws or standards of the Asso10 ciation, accompanied by a concise general statement 

11 of the basis and purpose of such proposal. 

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

13 or standard of the Association, and any proposed 

14 amendment to the bylaws or standards of the Asso15 ciation, shall take effect, after notice under para16 graph (2) and opportunity for public comment, on 

17 such date as the Association may designate, unless 

18 suspended under section 329(c). 

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

20 this section shall be construed to subject the Board 

21 or the Association to the requirements of subchapter 

22 II of chapter 5 of title 5, United States Code (com23 monly known as the ‘Administrative Procedure 

24 Act’). 

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


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1 ‘‘(1) SPECIFICATION OF CHARGES.—In any pro2 ceeding to determine whether membership shall be 

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

4 determine whether a member of the Association 

5 should be placed on probation (referred to in this 

6 section as a ‘disciplinary action’) or whether to as7 sess fines or monetary penalties, the Association 

8 shall bring specific charges, notify the member of 

9 the charges, give the member an opportunity to de10 fend against the charges, and keep a record. 

11 ‘‘(2) SUPPORTING STATEMENT.—A determina12 tion to take disciplinary action shall be supported by 

13 a statement setting forth— 

14 ‘‘(A) any act or practice in which the mem15 ber has been found to have been engaged; 

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

17 or standard of the Association that any such 

18 act or practice is deemed to violate; and 

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

20 for the sanction. 

21 ‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REP22 RESENTATIVES.—Board members appointed pursu23 ant to section 324(c)(3) may not— 


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1 ‘‘(A) participate in any disciplinary action 

2 or be counted toward establishing a quorum 

3 during a disciplinary action; and 

4 ‘‘(B) have access to confidential informa5 tion concerning any disciplinary action. 

6 ‘‘SEC. 326. POWERS. 

7 ‘‘In addition to all the powers conferred upon a non8 profit corporation by the District of Columbia Nonprofit 

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

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

11 as the Association finds necessary to impose to cover 

12 the costs of its operations; 

13 ‘‘(2) adopt, amend, and repeal bylaws, proce14 dures, or standards governing the conduct of Asso15 ciation business and performance of its duties; 

16 ‘‘(3) establish procedures for providing notice 

17 and opportunity for comment pursuant to section 

18 325(a); 

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

20 necessary to carry out the duties of the Association; 

21 ‘‘(5) hire employees, professionals, or special22 ists, and elect or appoint officers, and to fix their 

23 compensation, define their duties and give them ap24 propriate authority to carry out the purposes of this 

25 subtitle, and determine their qualification; 


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1 ‘‘(6) establish personnel policies of the Associa2 tion and programs relating to, among other things, 

3 conflicts of interest, rates of compensation, where 

4 applicable, and qualifications of personnel; 

5 ‘‘(7) borrow money; and 

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

7 Association determines to be necessary and appro8 priate to organize and begin operations of the Asso9 ciation, which shall be treated as loans to be repaid 

10 by the Association with interest at market rate. 

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

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

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

14 the President, through the Department of the Treasury, 

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

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

17 report regarding the conduct of its business, and the exer18 cise of the other rights and powers granted by this sub19 title, during such fiscal year. 

20 ‘‘(b) FINANCIAL STATEMENTS.—Each report sub21 mitted under subsection (a) with respect to any fiscal year 

22 shall include audited financial statements setting forth the 

23 financial position of the Association at the end of such 

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

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


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

2 BOARD MEMBERS, OFFICERS, AND EMPLOY3 EES OF THE ASSOCIATION. 

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

5 deemed to be an insurer or insurance producer within the 

6 meaning of any State law, rule, regulation, or order regu7 lating or taxing insurers, insurance producers, or other en8 tities engaged in the business of insurance, including pro9 visions imposing premium taxes, regulating insurer sol10 vency or financial condition, establishing guaranty funds 

11 and levying assessments, or requiring claims settlement 

12 practices. 

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

14 AND EMPLOYEES.—No Board member, officer, or em15 ployee of the Association shall be personally liable to any 

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

17 any matter within the scope of their responsibilities in con18 nection with the Association. 

19 ‘‘SEC. 329. PRESIDENTIAL OVERSIGHT. 

20 ‘‘(a) REMOVAL OF BOARD.—If the President deter21 mines that the Association is acting in a manner contrary 

22 to the interests of the public or the purposes of this sub23 title or has failed to perform its duties under this subtitle, 

24 the President may remove the entire existing Board for 

25 the remainder of the term to which the Board members 

26 were appointed and appoint, in accordance with section 


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1 324 and with the advice and consent of the Senate, in 

2 accordance with the procedures established under Senate 

3 Resolution 116 of the 112th Congress, new Board mem4 bers to fill the vacancies on the Board for the remainder 

5 of the terms. 

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

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

8 malfeasance in office. 

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

10 PROHIBITION OF ACTIONS.—Following notice to the 

11 Board, the President, or a person designated by the Presi12 dent for such purpose, may suspend the effectiveness of 

13 any bylaw or standard, or prohibit any action, of the Asso14 ciation that the President or the designee determines is 

15 contrary to the purposes of this subtitle. 

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

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

18 regulations, provisions, or other actions purporting to reg19 ulate insurance producers shall be preempted to the extent 

20 provided in subsection (b). 

21 ‘‘(b) PROHIBITED ACTIONS.— 

22 ‘‘(1) IN GENERAL.—No State shall— 

23 ‘‘(A) impede the activities of, take any ac24 tion against, or apply any provision of law or 

25 regulation arbitrarily or discriminatorily to, any 


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1 insurance producer because that insurance pro2 ducer or any affiliate plans to become, has ap3 plied to become, or is a member of the Associa4 tion; 

5 ‘‘(B) impose any requirement upon a mem6 ber of the Association that it pay fees different 

7 from those required to be paid to that State 

8 were it not a member of the Association; or 

9 ‘‘(C) impose any continuing education re10 quirements on any nonresident insurance pro11 ducer that is a member of the Association. 

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

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

14 of the Association, shall— 

15 ‘‘(A) impose any licensing, personal or cor16 porate qualifications, education, training, expe17 rience, residency, continuing education, or 

18 bonding requirement upon a member of the As19 sociation that is different from the criteria for 

20 membership in the Association or renewal of 

21 such membership; 

22 ‘‘(B) impose any requirement upon a mem23 ber of the Association that it be licensed, reg24 istered, or otherwise qualified to do business or 

25 remain in good standing in the State, including 


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1 any requirement that the insurance producer 

2 register as a foreign company with the sec3 retary of state or equivalent State official; 

4 ‘‘(C) require that a member of the Associa5 tion submit to a criminal history record check 

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

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

8 appointment requirements upon a member of 

9 the Association, or require a member of the As10 sociation to be authorized to operate as an in11 surance producer, in order to sell, solicit, or ne12 gotiate insurance for commercial property and 

13 casualty risks to an insured with risks located 

14 in more than one State, if the member is li15 censed or otherwise authorized to operate in the 

16 State where the insured maintains its principal 

17 place of business and the contract of insurance 

18 insures risks located in that State. 

19 ‘‘(3) PRESERVATION OF STATE DISCIPLINARY

20 AUTHORITY.—Nothing in this section may be con21 strued to prohibit a State from investigating and 

22 taking appropriate disciplinary action, including sus23 pension or revocation of authority of an insurance 

24 producer to do business in a State, in accordance 

25 with State law and that is not inconsistent with the 


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1 provisions of this section, against a member of the 

2 Association as a result of a complaint or for any al3 leged activity, regardless of whether the activity oc4 curred before or after the insurance producer com5 menced doing business in the State pursuant to As6 sociation membership. 

7 ‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY 

8 REGULATORY AUTHORITY. 

9 ‘‘The Association shall coordinate with the Financial 

10 Industry Regulatory Authority in order to ease any admin11 istrative burdens that fall on members of the Association 

12 that are subject to regulation by the Financial Industry 

13 Regulatory Authority, consistent with the requirements of 

14 this subtitle and the Federal securities laws. 

15 ‘‘SEC. 332. RIGHT OF ACTION. 

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

17 a decision or action of the Association may, after reason18 ably exhausting available avenues for resolution within the 

19 Association, commence a civil action in an appropriate 

20 United States district court, and obtain all appropriate re21 lief. 

22 ‘‘(b) ASSOCIATION INTERPRETATIONS.—In any ac23 tion under subsection (a), the court shall give appropriate 

24 weight to the interpretation of the Association of its by25 laws and standards and this subtitle. 


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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 

5 or 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 


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1 broker, excess or surplus lines broker or agent, in2 surance consultant, limited insurance representative, 

3 and any other individual or entity that sells, solicits, 

4 or negotiates policies of insurance or offers advice, 

5 counsel, 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 

18 in which an insurance producer resides for the great19 est 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. 


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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. 

‘‘Sec. 333. Federal funding prohibited. 

‘‘Sec. 334. Definitions.’’. 


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1 TITLE III—BUSINESS RISK MITI2 GATION AND PRICE STA3 BILIZATION 

4 SEC. 301. SHORT TITLE. 

5 This title may be cited as the ‘‘Business Risk Mitiga6 tion and Price Stabilization Act of 2015’’. 

7 SEC. 302. MARGIN REQUIREMENTS. 

8 (a) COMMODITY EXCHANGE ACT AMENDMENT.— 

9 Section 4s(e) of the Commodity Exchange Act (7 U.S.C. 

10 6s(e)), as added by section 731 of the Dodd-Frank Wall 

11 Street Reform and Consumer Protection Act, is amended 

12 by adding at the end the following new paragraph: 

13 ‘‘(4) APPLICABILITY WITH RESPECT TO

14 COUNTERPARTIES.—The requirements of paragraphs 

15 (2)(A)(ii) and (2)(B)(ii), including the initial and 

16 variation margin requirements imposed by rules 

17 adopted pursuant to paragraphs (2)(A)(ii) and 

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

19 counterparty qualifies for an exception under section 

20 2(h)(7)(A), or an exemption issued under section 

21 4(c)(1) from the requirements of section 2(h)(1)(A) 

22 for cooperative entities as defined in such exemption, 

23 or satisfies the criteria in section 2(h)(7)(D).’’. 

24 (b) SECURITIES EXCHANGE ACT AMENDMENT.— 

25 Section 15F(e) of the Securities Exchange Act of 1934 


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1 (15 U.S.C. 78o–10(e)), as added by section 764(a) of the 

2 Dodd-Frank Wall Street Reform and Consumer Protec3 tion Act, is amended by adding at the end the following 

4 new paragraph: 

5 ‘‘(4) APPLICABILITY WITH RESPECT TO

6 COUNTERPARTIES.—The requirements of paragraphs 

7 (2)(A)(ii) and (2)(B)(ii) shall not apply to a secu8 rity-based swap in which a counterparty qualifies for 

9 an exception under section 3C(g)(1) or satisfies the 

10 criteria in section 3C(g)(4).’’. 

11 SEC. 303. IMPLEMENTATION. 

12 The amendments made by this title to the Commodity 

13 Exchange Act shall be implemented— 

14 (1) without regard to— 

15 (A) chapter 35 of title 44, United States 

16 Code; and 

17 (B) the notice and comment provisions of 

18 section 553 of title 5, United States Code; 

19 (2) through the promulgation of an interim 

20 final rule, pursuant to which public comment will be 

21 sought before a final rule is issued; and 

22 (3) such that paragraph (1) shall apply solely 

23 to changes to rules and regulations, or proposed 


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1 rules and regulations, that are limited to and di2 rectly a consequence of such amendments. 

Æ 


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