114TH CONGRESS 

1ST SESSION H. R. 26 

AN ACT 

To extend the termination date of the Terrorism Insurance 

Program established under the Terrorism Risk Insurance 

Act of 2002, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

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

3 ‘‘Terrorism Risk Insurance Program Reauthorization Act 

4 of 2015’’. 

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

6 this Act is as follows: 

Sec. 1. Short title and table of contents. 

TITLE I—EXTENSION OF TERRORISM INSURANCE PROGRAM 

Sec. 101. Extension of Terrorism Insurance Program. 

Sec. 102. Federal share. 

Sec. 103. Program trigger. 

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

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

Homeland Security. 

Sec. 106. Technical amendments. 

Sec. 107. Improving the certification process. 

Sec. 108. GAO study. 

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

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

Sec. 111. Reporting of terrorism insurance data. 

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

TITLE II—NATIONAL ASSOCIATION OF REGISTERED AGENTS AND 

BROKERS REFORM 

Sec. 201. Short title. 

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

and Brokers. 

TITLE III—BUSINESS RISK MITIGATION AND PRICE 

STABILIZATION 

Sec. 301. Short title. 

Sec. 302. Margin requirements. 

Sec. 303. Implementation. 
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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’’. 

10 SEC. 102. FEDERAL SHARE. 

11 Section 103(e)(1)(A) of the Terrorism Risk Insur12 ance Act of 2002 (15 U.S.C. 6701 note) is amended by 

13 inserting ‘‘and beginning on January 1, 2016, shall de14 crease by 1 percentage point per calendar year until equal 

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

16 SEC. 103. PROGRAM TRIGGER. 

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

18 6701 note) is amended in the matter preceding clause 

19 (i)— 

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

21 ‘‘certified acts’’; 

22 (2) by striking ‘‘such certified act’’ and insert23 ing ‘‘such certified acts’’; and 
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1 (3) by striking ‘‘exceed’’ and all that follows 

2 through clause (ii) and inserting the following: ‘‘ex3 ceed— 

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

5 such insured losses occurring in calendar 

6 year 2015; 

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

8 such insured losses occurring in calendar 

9 year 2016; 

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

11 such insured losses occurring in calendar 

12 year 2017; 

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

14 such insured losses occurring in calendar 

15 year 2018; 

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

17 such insured losses occurring in calendar 

18 year 2019; and 

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

20 such insured losses occurring in calendar 

21 year 2020 and any calendar year there22 after.’’. 
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1 SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COM2 PENSATION UNDER THE PROGRAM. 

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

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

5 (1) by amending paragraph (6) to read as fol6 lows: 

7 ‘‘(6) INSURANCE MARKETPLACE AGGREGATE

8 RETENTION AMOUNT.— 

9 ‘‘(A) IN GENERAL.—For purposes of para10 graph (7), the insurance marketplace aggregate 

11 retention amount shall be the lesser of— 

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

13 is revised pursuant to this paragraph; and 

14 ‘‘(ii) the aggregate amount, for all in15 surers, of insured losses during such cal16 endar year. 

17 ‘‘(B) REVISION OF INSURANCE MARKET18 PLACE AGGREGATE RETENTION AMOUNT.— 

19 ‘‘(i) PHASE-IN.—Beginning in the cal20 endar year of enactment of the Terrorism 

21 Risk Insurance Program Reauthorization 

22 Act of 2015, the amount set forth under 

23 subparagraph (A)(i) shall increase by 

24 $2,000,000,000 per calendar year until 

25 equal to $37,500,000,000. 
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1 ‘‘(ii) FURTHER REVISION.—Beginning 

2 in the calendar year that follows the cal3 endar year in which the amount set forth 

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

5 $37,500,000,000, the amount under sub6 paragraph (A)(i) shall be revised to be the 

7 amount equal to the annual average of the 

8 sum of insurer deductibles for all insurers 

9 participating in the Program for the prior 

10 3 calendar years, as such sum is deter11 mined by the Secretary under subpara12 graph (C). 

13 ‘‘(C) RULEMAKING.—Not later than 3 

14 years after the date of enactment of the Ter15 rorism Risk Insurance Program Reauthoriza16 tion Act of 2015, the Secretary shall— 

17 ‘‘(i) issue final rules for determining 

18 the amount of the sum described under 

19 subparagraph (B)(ii); and 

20 ‘‘(ii) provide a timeline for public noti21 fication of such determination.’’; and 

22 (2) in paragraph (7)— 

23 (A) in subparagraph (A)— 

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

25 by striking ‘‘for each of the periods re-
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1 ferred to in subparagraphs (A) through 

2 (E) of paragraph (6)’’; and 

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

4 period’’; 

5 (B) by striking subparagraph (B) and in6 serting the following: 

7 ‘‘(B) [Reserved.]’’; 

8 (C) in subparagraph (C)— 

9 (i) by striking ‘‘occurring during any 

10 of the periods referred to in any of sub11 paragraphs (A) through (E) of paragraph 

12 (6), terrorism loss risk-spreading pre13 miums in an amount equal to 133 percent’’ 

14 and inserting ‘‘, terrorism loss risk-spread15 ing premiums in an amount equal to 140 

16 percent’’; and 

17 (ii) by inserting ‘‘as calculated under 

18 subparagraph (A)’’ after ‘‘mandatory 

19 recoupment amount’’; and 

20 (D) in subparagraph (E)(i)— 

21 (i) in subclause (I)— 

22 (I) by striking ‘‘2010’’ and in23 serting ‘‘2017’’; and 

24 (II) by striking ‘‘2012’’ and in25 serting ‘‘2019’’; 
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1 (ii) in subclause (II)— 

2 (I) by striking ‘‘2011’’ and in3 serting ‘‘2018’’; 

4 (II) by striking ‘‘2012’’ and in5 serting ‘‘2019’’; and 

6 (III) by striking ‘‘2017’’ and in7 serting ‘‘2024’’; and 

8 (iii) in subclause (III)— 

9 (I) by striking ‘‘2012’’ and in10 serting ‘‘2019’’; and 

11 (II) by striking ‘‘2017’’ and in12 serting ‘‘2024’’. 

13 SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CON14 SULTATION WITH SECRETARY OF HOMELAND 

15 SECURITY. 

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

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

18 striking ‘‘concurrence with the Secretary of State’’ and in19 serting ‘‘consultation with the Secretary of Homeland Se20 curity’’. 

21 SEC. 106. TECHNICAL AMENDMENTS. 

22 The Terrorism Risk Insurance Act of 2002 (15 

23 U.S.C. 6701 note) is amended— 

24 (1) in section 102— 

25 (A) in paragraph (3)— 
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1 (i) by redesignating subparagraphs 

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

3 (iii), respectively; 

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

5 (as so redesignated), by striking ‘‘An enti6 ty has’’ and inserting the following: 

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

8 (iii) by adding at the end the fol9 lowing new subparagraph: 

10 ‘‘(B) RULE OF CONSTRUCTION.—An enti11 ty, including any affiliate thereof, does not have 

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

13 of enactment of the Terrorism Risk Insurance 

14 Program Reauthorization Act of 2015, the enti15 ty is acting as an attorney-in-fact, as defined by 

16 the Secretary, for the other entity and such 

17 other entity is a reciprocal insurer, provided 

18 that the entity is not, for reasons other than 

19 the attorney-in-fact relationship, defined as hav20 ing ‘control’ under subparagraph (A).’’; 

21 (B) in paragraph (7)— 

22 (i) by striking subparagraphs (A) 

23 through (F) and inserting the following: 

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

25 earned premiums during the immediately pre-
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1 ceding calendar year, multiplied by 20 percent; 

2 and’’; 

3 (ii) by redesignating subparagraph 

4 (G) as subparagraph (B); and 

5 (iii) in subparagraph (B), as so redes6 ignated by clause (ii)— 

7 (I) by striking ‘‘notwithstanding 

8 subparagraphs (A) through (F), for 

9 the Transition Period or any Program 

10 Year’’ and inserting ‘‘notwithstanding 

11 subparagraph (A), for any calendar 

12 year’’; and 

13 (II) by striking ‘‘Period or Pro14 gram Year’’ and inserting ‘‘calendar 

15 year’’; 

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

17 (D) by redesignating paragraphs (12) 

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

19 respectively; and 

20 (2) in section 103— 

21 (A) in subsection (b)(2)— 

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

23 purchase,’’; and 

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

25 ‘‘, purchase,’’; 
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1 (B) in subsection (c), by striking ‘‘Pro2 gram Year’’ and inserting ‘‘calendar year’’; 

3 (C) in subsection (e)— 

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

5 amended by section 102— 

6 (I) by striking ‘‘the Transition 

7 Period and each Program Year 

8 through Program Year 4 shall be 

9 equal to 90 percent, and during Pro10 gram Year 5 and each Program Year 

11 thereafter’’ and inserting ‘‘each cal12 endar year’’; 

13 (II) by striking the comma after 

14 ‘‘80 percent’’; and 

15 (III) by striking ‘‘such Transition 

16 Period or such Program Year’’ and 

17 inserting ‘‘such calendar year’’; 

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

19 ‘‘the period beginning on the first day of 

20 the Transition Period and ending on the 

21 last day of Program Year 1, or during any 

22 Program Year thereafter’’ and inserting ‘‘a 

23 calendar year’’; and 

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

25 period beginning on the first day of the 
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1 Transition Period and ending on the last 

2 day of Program Year 1, or during any 

3 other Program Year’’ and inserting ‘‘any 

4 calendar year’’; and 

5 (D) in subsection (g)(2)— 

6 (i) by striking ‘‘the Transition Period 

7 or a Program Year’’ each place that term 

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

9 (ii) by striking ‘‘such period’’ and in10 serting ‘‘the calendar year’’; and 

11 (iii) by striking ‘‘that period’’ and in12 serting ‘‘the calendar year’’. 

13 SEC. 107. IMPROVING THE CERTIFICATION PROCESS. 

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

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

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

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

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

19 process by which the Secretary determines whether 

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

21 102(1) of the Terrorism Risk Insurance Act of 2002 

22 (15 U.S.C. 6701 note); and 

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

24 of the Treasury. 
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1 (b) STUDY.—Not later than 9 months after the date 

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

3 complete a study on the certification process. 

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

5 subsection (a) shall include an examination and analysis 

6 of— 

7 (1) the establishment of a reasonable timeline 

8 by which the Secretary must make an accurate de9 termination on whether to certify an act as an act 

10 of terrorism; 

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

12 proposed to be established under paragraph (1) may 

13 have on the insurance industry, policyholders, con14 sumers, and taxpayers as a whole; 

15 (3) the factors the Secretary would evaluate 

16 and monitor during the certification process, includ17 ing the ability of the Secretary to obtain the re18 quired information regarding the amount of pro19 jected and incurred losses resulting from an act 

20 which the Secretary would need in determining 

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

22 (4) the appropriateness, efficiency, and effec23 tiveness of the consultation process required under 

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

25 Act of 2002 (15 U.S.C. 6701 note) and any rec-
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1 ommendations on changes to the consultation proc2 ess; and 

3 (5) the ability of the Secretary to provide guid4 ance and updates to the public regarding any act 

5 that may reasonably be certified as an act of ter6 rorism. 

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

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

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

10 Housing, and Urban Affairs of the Senate and the Com11 mittee on Financial Services of the House of Representa12 tives. 

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

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

15 amended— 

16 (1) by redesignating subparagraph (D) as sub17 paragraph (E); and 

18 (2) by inserting after subparagraph (C) the fol19 lowing: 

20 ‘‘(D) TIMING OF CERTIFICATION.—Not 

21 later than 9 months after the report required 

22 under section 107 of the Terrorism Risk Insur23 ance Program Reauthorization Act of 2015 is 

24 submitted to the appropriate committees of 

25 Congress, the Secretary shall issue final rules 
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1 governing the certification process, including es2 tablishing a timeline for which an act is eligible 

3 for certification by the Secretary on whether an 

4 act is an act of terrorism under this para5 graph.’’. 

6 SEC. 108. GAO STUDY. 

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

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

9 United States shall complete a study on the viability and 

10 effects of the Federal Government— 

11 (1) assessing and collecting upfront premiums 

12 on insurers that participate in the Terrorism Insur13 ance Program established under the Terrorism Risk 

14 Insurance Act of 2002 (15 U.S.C. 6701 note) (here15 after in this section referred to as the ‘‘Program’’), 

16 which shall include a comparison of practices in 

17 international markets to assess and collect premiums 

18 either before or after terrorism losses are incurred; 

19 and 

20 (2) creating a capital reserve fund under the 

21 Program and requiring insurers participating in the 

22 Program to dedicate capital specifically for terrorism 

23 losses before such losses are incurred, which shall in24 clude a comparison of practices in international mar25 kets to establish reserve funds. 
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1 (b) REQUIRED CONTENT.—The study required under 

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

3 the following issues: 

4 (1) UPFRONT PREMIUMS.—With respect to up5 front premiums described in subsection (a)(1)— 

6 (A) how the Federal Government could de7 termine the price of such upfront premiums on 

8 insurers that participate in the Program; 

9 (B) how the Federal Government could col10 lect and manage such upfront premiums; 

11 (C) how the Federal Government could en12 sure that such upfront premiums are not spent 

13 for purposes other than claims through the Pro14 gram; 

15 (D) how the assessment and collection of 

16 such upfront premiums could affect take-up 

17 rates for terrorism risk coverage in different re18 gions and industries and how it could impact 

19 small businesses and consumers in both metro20 politan and non-metropolitan areas; 

21 (E) the effect of collecting such upfront 

22 premiums on insurers both large and small; 

23 (F) the effect of collecting such upfront 

24 premiums on the private market for terrorism 

25 risk reinsurance; and 
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1 (G) the size of any Federal Government 

2 subsidy insurers may receive through their par3 ticipation in the Program, taking into account 

4 the Program’s current post-event recoupment 

5 structure. 

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

7 the capital reserve fund described in subsection 

8 (a)(2)— 

9 (A) how the creation of a capital reserve 

10 fund would affect the Federal Government’s fis11 cal exposure under the Terrorism Risk Insur12 ance Program and the ability of the Program to 

13 meet its statutory purposes; 

14 (B) how a capital reserve fund would im15 pact insurers and reinsurers, including liquidity, 

16 insurance pricing, and capacity to provide ter17 rorism risk coverage; 

18 (C) the feasibility of segregating funds at19 tributable to terrorism risk from funds attrib20 utable to other insurance lines; 

21 (D) how a capital reserve fund would be 

22 viewed and treated under current Financial Ac23 counting Standards Board accounting rules and 

24 the tax laws; and 
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1 (E) how a capital reserve fund would affect 

2 the States’ ability to regulate insurers partici3 pating in the Program. 

4 (3) INTERNATIONAL PRACTICES.—With respect 

5 to international markets referred to in paragraphs 

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

7 if any— 

8 (A) have established terrorism insurance 

9 structures; 

10 (B) charge premiums or otherwise collect 

11 funds to pay for the costs of terrorism insur12 ance structures, including risk and administra13 tive costs; and 

14 (C) have established capital reserve funds 

15 to pay for the costs of terrorism insurance 

16 structures. 

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

18 under subsection (a), the Comptroller General shall sub19 mit a report on the results of such study to the Committee 

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

21 and the Committee on Financial Services of the House of 

22 Representatives. 

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

24 required under this section shall be made available to the 
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1 public in electronic form and shall be published on the 

2 website of the Government Accountability Office. 

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

4 FEDERAL RESERVE SYSTEM. 

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

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

7 is amended by inserting after the second sentence the fol8 lowing: ‘‘In selecting members of the Board, the President 

9 shall appoint at least 1 member with demonstrated pri10 mary experience working in or supervising community 

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

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

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

14 this Act and apply to appointments made on and after 

15 that effective date, excluding any nomination pending in 

16 the Senate on that date. 

17 SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECH18 ANISMS. 

19 (a) FINDING; RULE OF CONSTRUCTION.— 

20 (1) FINDING.—Congress finds that it is desir21 able to encourage the growth of nongovernmental, 

22 private market reinsurance capacity for protection 

23 against losses arising from acts of terrorism. 

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

25 Act, any amendment made by this Act, or the Ter-
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1 rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 

2 note) shall prohibit insurers from developing risk3 sharing mechanisms to voluntarily reinsure terrorism 

4 losses between and among themselves. 

5 (b) ADVISORY COMMITTEE ON RISK-SHARING MECH6 ANISMS.— 

7 (1) ESTABLISHMENT.—The Secretary of the 

8 Treasury shall establish and appoint an advisory 

9 committee to be known as the ‘‘Advisory Committee 

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

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

12 (2) DUTIES.—The Advisory Committee shall 

13 provide advice, recommendations, and encourage14 ment with respect to the creation and development 

15 of the nongovernmental risk-sharing mechanisms de16 scribed under subsection (a). 

17 (3) MEMBERSHIP.—The Advisory Committee 

18 shall be composed of 9 members who are directors, 

19 officers, or other employees of insurers, reinsurers, 

20 or capital market participants that are participating 

21 or that desire to participate in the nongovernmental 

22 risk-sharing mechanisms described under subsection 

23 (a), and who are representative of the affected sec24 tors of the insurance industry, including commercial 
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1 property insurance, commercial casualty insurance, 

2 reinsurance, and alternative risk transfer industries. 

3 SEC. 111. REPORTING OF TERRORISM INSURANCE DATA. 

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

5 adding at the end the following new subsection: 

6 ‘‘(h) REPORTING OF TERRORISM INSURANCE

7 DATA.— 

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

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

10 year thereafter, the Secretary shall require insurers 

11 participating in the Program to submit to the Sec12 retary such information regarding insurance cov13 erage for terrorism losses of such insurers as the 

14 Secretary considers appropriate to analyze the effec15 tiveness of the Program, which shall include infor16 mation regarding— 

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

18 such losses; 

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

20 ‘‘(C) geographical location of exposures; 

21 ‘‘(D) pricing of such coverage; 

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

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

24 acts of terrorism purchased; and 
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1 ‘‘(G) such other matters as the Secretary 

2 considers appropriate. 

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

4 and every other June 30 thereafter, the Secretary 

5 shall submit a report to the Committee on Financial 

6 Services of the House of Representatives and the 

7 Committee on Banking, Housing, and Urban Affairs 

8 of the Senate that includes— 

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

10 of the Program; 

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

12 trends in the data collected under paragraph 

13 (1); 

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

15 of the Program have the effect of discouraging 

16 or impeding insurers from providing commercial 

17 property casualty insurance coverage or cov18 erage for acts of terrorism; 

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

20 Program on workers’ compensation insurers; 

21 and 

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

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

24 total amount earned since January 1, 2003. 
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1 ‘‘(3) PROTECTION OF DATA.—To the extent 

2 possible, the Secretary shall contract with an insur3 ance statistical aggregator to collect the information 

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

5 nonpublic information confidential and provide it to 

6 the Secretary in an aggregate form or in such other 

7 form or manner that does not permit identification 

8 of the insurer submitting such information. 

9 ‘‘(4) ADVANCE COORDINATION.—Before col10 lecting any data or information under paragraph (1) 

11 from an insurer, or affiliate of an insurer, the Sec12 retary shall coordinate with the appropriate State in13 surance regulatory authorities and any relevant gov14 ernment agency or publicly available sources to de15 termine if the information to be collected is available 

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

17 individually or collectively, such entities. If the Sec18 retary determines that such data or information is 

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

20 from such entities, the Secretary shall obtain the 

21 data or information from such entities. If the Sec22 retary determines that such data or information is 

23 not so available, the Secretary may collect such data 

24 or information from an insurer and affiliates. 

25 ‘‘(5) CONFIDENTIALITY.— 
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1 ‘‘(A) RETENTION OF PRIVILEGE.—The 

2 submission of any non-publicly available data 

3 and information to the Secretary and the shar4 ing of any non-publicly available data with or 

5 by the Secretary among other Federal agencies, 

6 the State insurance regulatory authorities, or 

7 any other entities under this subsection shall 

8 not constitute a waiver of, or otherwise affect, 

9 any privilege arising under Federal or State law 

10 (including the rules of any Federal or State 

11 court) to which the data or information is oth12 erwise subject. 

13 ‘‘(B) CONTINUED APPLICATION OF PRIOR

14 CONFIDENTIALITY AGREEMENTS.—Any require15 ment under Federal or State law to the extent 

16 otherwise applicable, or any requirement pursu17 ant to a written agreement in effect between 

18 the original source of any non-publicly available 

19 data or information and the source of such data 

20 or information to the Secretary, regarding the 

21 privacy or confidentiality of any data or infor22 mation in the possession of the source to the 

23 Secretary, shall continue to apply to such data 

24 or information after the data or information 

25 has been provided pursuant to this subsection. 
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1 ‘‘(C) INFORMATION-SHARING AGREE2 MENT.—Any data or information obtained by 

3 the Secretary under this subsection may be 

4 made available to State insurance regulatory 

5 authorities, individually or collectively through 

6 an information-sharing agreement that— 

7 ‘‘(i) shall comply with applicable Fed8 eral law; and 

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

10 or otherwise affect, any privilege under 

11 Federal or State law (including any privi12 lege referred to in subparagraph (A) and 

13 the rules of any Federal or State court) to 

14 which the data or information is otherwise 

15 subject. 

16 ‘‘(D) AGENCY DISCLOSURE REQUIRE17 MENTS.—Section 552 of title 5, United States 

18 Code, including any exceptions thereunder, shall 

19 apply to any data or information submitted 

20 under this subsection to the Secretary by an in21 surer or affiliate of an insurer.’’. 

22 SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET 

23 COMPETITIVENESS. 

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

25 adding at the end the following new subsection: 
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1 ‘‘(h) STUDY OF SMALL INSURER MARKET COMPETI2 TIVENESS.— 

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

4 2017, and every other June 30 thereafter, the Sec5 retary shall conduct a study of small insurers (as 

6 such term is defined by regulation by the Secretary) 

7 participating in the Program, and identify any com8 petitive challenges small insurers face in the ter9 rorism risk insurance marketplace, including— 

10 ‘‘(A) changes to the market share, pre11 mium volume, and policyholder surplus of small 

12 insurers relative to large insurers; 

13 ‘‘(B) how the property and casualty insur14 ance market for terrorism risk differs between 

15 small and large insurers, and whether such a 

16 difference exists within other perils; 

17 ‘‘(C) the impact of the Program’s manda18 tory availability requirement under section 

19 103(c) on small insurers; 

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

21 amount for the Program under section 

22 103(e)(1)(B) on small insurers; 

23 ‘‘(E) the availability and cost of private re24 insurance for small insurers; and 
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1 ‘‘(F) the impact that State workers com2 pensation laws have on small insurers and 

3 workers compensation carriers in the terrorism 

4 risk insurance marketplace. 

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

6 report to the Congress setting forth the findings and 

7 conclusions of each study required under paragraph 

8 (1).’’. 

9 TITLE II—NATIONAL ASSOCIA10 TION OF REGISTERED 

11 AGENTS AND BROKERS RE12 FORM 

13 SEC. 201. SHORT TITLE. 

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

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

16 SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIA17 TION OF REGISTERED AGENTS AND BRO18 KERS. 

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

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

21 amended to read as follows: 
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1 ‘‘Subtitle C—National Association 

2 of Registered Agents and Brokers 

3 ‘‘SEC. 321. NATIONAL ASSOCIATION OF REGISTERED 

4 AGENTS AND BROKERS. 

5 ‘‘(a) ESTABLISHMENT.—There is established the Na6 tional Association of Registered Agents and Brokers (re7 ferred to in this subtitle as the ‘Association’). 

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

9 ‘‘(1) be a nonprofit corporation; 

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

11 Federal Government; 

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

13 not be merged with or into any other private or pub14 lic entity; and 

15 ‘‘(4) except as otherwise provided in this sub16 title, be subject to, and have all the powers conferred 

17 upon, a nonprofit corporation by the District of Co18 lumbia Nonprofit Corporation Act (D.C. Code, sec. 

19 29–301.01 et seq.) or any successor thereto. 

20 ‘‘SEC. 322. PURPOSE. 

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

22 a mechanism through which licensing, continuing edu23 cation, and other nonresident insurance producer quali24 fication requirements and conditions may be adopted and 

25 applied on a multi-state basis without affecting the laws, 
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1 rules, and regulations, and preserving the rights of a 

2 State, pertaining to— 

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

4 qualification requirements of insurance producers 

5 that are not members of the Association; 

6 ‘‘(2) resident or nonresident insurance producer 

7 appointment requirements; 

8 ‘‘(3) supervising and disciplining resident and 

9 nonresident insurance producers; 

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

11 nonresident insurance producers so that there is no 

12 loss of insurance producer licensing revenue to the 

13 State; and 

14 ‘‘(5) prescribing and enforcing laws and regula15 tions regulating the conduct of resident and non16 resident insurance producers. 

17 ‘‘SEC. 323. MEMBERSHIP. 

18 ‘‘(a) ELIGIBILITY.— 

19 ‘‘(1) IN GENERAL.—Any insurance producer li20 censed in its home State shall, subject to paragraphs 

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

22 Association. 

23 ‘‘(2) INELIGIBILITY FOR SUSPENSION OR REV24 OCATION OF LICENSE.—Subject to paragraph (3), 

25 an insurance producer is not eligible to become a 
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1 member of the Association if a State insurance regu2 lator has suspended or revoked the insurance license 

3 of the insurance producer in that State. 

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

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

6 if— 

7 ‘‘(A) the State insurance regulator reissues 

8 or renews the license of the insurance producer 

9 in the State in which the license was suspended 

10 or revoked, or otherwise terminates or vacates 

11 the suspension or revocation; or 

12 ‘‘(B) the suspension or revocation expires 

13 or is subsequently overturned by a court of 

14 competent jurisdiction. 

15 ‘‘(4) CRIMINAL HISTORY RECORD CHECK RE16 QUIRED.— 

17 ‘‘(A) IN GENERAL.—An insurance pro18 ducer who is an individual shall not be eligible 

19 to become a member of the Association unless 

20 the insurance producer has undergone a crimi21 nal history record check that complies with reg22 ulations prescribed by the Attorney General of 

23 the United States under subparagraph (K). 

24 ‘‘(B) CRIMINAL HISTORY RECORD CHECK

25 REQUESTED BY HOME STATE.—An insurance 
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1 producer who is licensed in a State and who has 

2 undergone a criminal history record check dur3 ing the 2-year period preceding the date of sub4 mission of an application to become a member 

5 of the Association, in compliance with a re6 quirement to undergo such criminal history 

7 record check as a condition for such licensure 

8 in the State, shall be deemed to have undergone 

9 a criminal history record check for purposes of 

10 subparagraph (A). 

11 ‘‘(C) CRIMINAL HISTORY RECORD CHECK

12 REQUESTED BY ASSOCIATION.— 

13 ‘‘(i) IN GENERAL.—The Association 

14 shall, upon request by an insurance pro15 ducer licensed in a State, submit finger16 prints or other identification information 

17 obtained from the insurance producer, and 

18 a request for a criminal history record 

19 check of the insurance producer, to the 

20 Federal Bureau of Investigation. 

21 ‘‘(ii) PROCEDURES.—The board of di22 rectors of the Association (referred to in 

23 this subtitle as the ‘Board’) shall prescribe 

24 procedures for obtaining and utilizing fin25 gerprints or other identification informa-
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1 tion and criminal history record informa2 tion, including the establishment of reason3 able fees to defray the expenses of the As4 sociation in connection with the perform5 ance of a criminal history record check and 

6 appropriate safeguards for maintaining 

7 confidentiality and security of the informa8 tion. Any fees charged pursuant to this 

9 clause shall be separate and distinct from 

10 those charged by the Attorney General 

11 pursuant to subparagraph (I). 

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

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

14 fingerprints or other identification information 

15 as is required by the Attorney General con16 cerning the person about whom the criminal 

17 history record check is requested, and a state18 ment signed by the person authorizing the At19 torney General to provide the information to 

20 the Association and for the Association to re21 ceive the information. 

22 ‘‘(E) PROVISION OF INFORMATION BY AT23 TORNEY GENERAL.—Upon receiving a submis24 sion under subparagraph (C)(i) from the Asso25 ciation, the Attorney General shall search all 
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1 criminal history records of the Federal Bureau 

2 of Investigation, including records of the Crimi3 nal Justice Information Services Division of the 

4 Federal Bureau of Investigation, that the At5 torney General determines appropriate for 

6 criminal history records corresponding to the 

7 fingerprints or other identification information 

8 provided under subparagraph (D) and provide 

9 all criminal history record information included 

10 in the request to the Association. 

11 ‘‘(F) LIMITATION ON PERMISSIBLE USES

12 OF INFORMATION.—Any information provided 

13 to the Association under subparagraph (E) may 

14 only— 

15 ‘‘(i) be used for purposes of deter16 mining compliance with membership cri17 teria established by the Association; 

18 ‘‘(ii) be disclosed to State insurance 

19 regulators, or Federal or State law en20 forcement agencies, in conformance with 

21 applicable law; or 

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

23 the insurance producer to whom the crimi24 nal history record information relates. 
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1 ‘‘(G) PENALTY FOR IMPROPER USE OR

2 DISCLOSURE.—Whoever knowingly uses any in3 formation provided under subparagraph (E) for 

4 a purpose not authorized in subparagraph (F), 

5 or discloses any such information to anyone not 

6 authorized to receive it, shall be fined not more 

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

8 court of competent jurisdiction. 

9 ‘‘(H) RELIANCE ON INFORMATION.—Nei10 ther the Association nor any of its Board mem11 bers, officers, or employees shall be liable in 

12 any action for using information provided under 

13 subparagraph (E) as permitted under subpara14 graph (F) in good faith and in reasonable reli15 ance on its accuracy. 

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

17 charge a reasonable fee for conducting the 

18 search and providing the information under 

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

20 collected and remitted by the Association to the 

21 Attorney General. 

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

23 in this paragraph shall be construed as— 
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1 ‘‘(i) requiring a State insurance regu2 lator to perform criminal history record 

3 checks under this section; or 

4 ‘‘(ii) limiting any other authority that 

5 allows access to criminal history records. 

6 ‘‘(K) REGULATIONS.—The Attorney Gen7 eral shall prescribe regulations to carry out this 

8 paragraph, which shall include— 

9 ‘‘(i) appropriate protections for ensur10 ing the confidentiality of information pro11 vided under subparagraph (E); and 

12 ‘‘(ii) procedures providing a reason13 able opportunity for an insurance producer 

14 to contest the accuracy of information re15 garding the insurance producer provided 

16 under subparagraph (E). 

17 ‘‘(L) INELIGIBILITY FOR MEMBERSHIP.— 

18 ‘‘(i) IN GENERAL.—The Association 

19 may, under reasonably consistently applied 

20 standards, deny membership to an insur21 ance producer on the basis of criminal his22 tory record information provided under 

23 subparagraph (E), or where the insurance 

24 producer has been subject to disciplinary 

25 action, as described in paragraph (2). 
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1 ‘‘(ii) RIGHTS OF APPLICANTS DENIED

2 MEMBERSHIP.—The Association shall no3 tify any insurance producer who is denied 

4 membership on the basis of criminal his5 tory record information provided under 

6 subparagraph (E) of the right of the insur7 ance producer to— 

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

9 history record information provided to 

10 the Association under subparagraph 

11 (E) with respect to the insurance pro12 ducer; and 

13 ‘‘(II) challenge the denial of 

14 membership based on the accuracy 

15 and completeness of the information. 

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

17 paragraph, the term ‘criminal history record 

18 check’ means a national background check of 

19 criminal history records of the Federal Bureau 

20 of Investigation. 

21 ‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI22 TERIA.—The Association may establish membership cri23 teria that bear a reasonable relationship to the purposes 

24 for which the Association was established. 
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1 ‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES

2 OF MEMBERSHIP.— 

3 ‘‘(1) CLASSES OF MEMBERSHIP.—The Associa4 tion may establish separate classes of membership, 

5 with separate criteria, if the Association reasonably 

6 determines that performance of different duties re7 quires different levels of education, training, experi8 ence, or other qualifications. 

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

10 shall establish a class of membership and member11 ship criteria for business entities. A business entity 

12 that applies for membership shall be required to des13 ignate an individual Association member responsible 

14 for the compliance of the business entity with Asso15 ciation standards and the insurance laws, standards, 

16 and regulations of any State in which the business 

17 entity seeks to do business on the basis of Associa18 tion membership. 

19 ‘‘(3) CATEGORIES.— 

20 ‘‘(A) SEPARATE CATEGORIES FOR INSUR21 ANCE PRODUCERS PERMITTED.—The Associa22 tion may establish separate categories of mem23 bership for insurance producers and for other 

24 persons or entities within each class, based on 
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1 the types of licensing categories that exist 

2 under State laws. 

3 ‘‘(B) SEPARATE TREATMENT FOR DEPOSI4 TORY INSTITUTIONS PROHIBITED.—No special 

5 categories of membership, and no distinct mem6 bership criteria, shall be established for mem7 bers that are depository institutions or for em8 ployees, agents, or affiliates of depository insti9 tutions. 

10 ‘‘(d) MEMBERSHIP CRITERIA.— 

11 ‘‘(1) IN GENERAL.—The Association may estab12 lish criteria for membership which shall include 

13 standards for personal qualifications, education, 

14 training, and experience. The Association shall not 

15 establish criteria that unfairly limit the ability of a 

16 small insurance producer to become a member of the 

17 Association, including imposing discriminatory mem18 bership fees. 

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

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

21 any qualification less protective to the public than 

22 that contained in the National Association of Insur23 ance Commissioners (referred to in this subtitle as 

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

25 as of the date of enactment of the National Associa-
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1 tion of Registered Agents and Brokers Reform Act 

2 of 2015, and shall consider the highest levels of in3 surance producer qualifications established under 

4 the licensing laws of the States. 

5 ‘‘(3) ASSISTANCE FROM STATES.— 

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

7 request a State to provide assistance in inves8 tigating and evaluating the eligibility of a pro9 spective member for membership in the Associa10 tion. 

11 ‘‘(B) AUTHORIZATION OF INFORMATION

12 SHARING.—A submission under subsection 

13 (a)(4)(C)(i) made by an insurance producer li14 censed in a State shall include a statement 

15 signed by the person about whom the assistance 

16 is requested authorizing— 

17 ‘‘(i) the State to share information 

18 with the Association; and 

19 ‘‘(ii) the Association to receive the in20 formation. 

21 ‘‘(C) RULE OF CONSTRUCTION.—Subpara22 graph (A) shall not be construed as requiring or 

23 authorizing any State to adopt new or addi24 tional requirements concerning the licensing or 

25 evaluation of insurance producers. 
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1 ‘‘(4) DENIAL OF MEMBERSHIP.—The Associa2 tion may, based on reasonably consistently applied 

3 standards, deny membership to any State-licensed 

4 insurance producer for failure to meet the member5 ship criteria established by the Association. 

6 ‘‘(e) EFFECT OF MEMBERSHIP.— 

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

8 Membership in the Association shall— 

9 ‘‘(A) authorize an insurance producer to 

10 sell, solicit, or negotiate insurance in any State 

11 for which the member pays the licensing fee set 

12 by the State for any line or lines of insurance 

13 specified in the home State license of the insur14 ance producer, and exercise all such incidental 

15 powers as shall be necessary to carry out such 

16 activities, including claims adjustments and set17 tlement to the extent permissible under the laws 

18 of the State, risk management, employee bene19 fits advice, retirement planning, and any other 

20 insurance-related consulting activities; 

21 ‘‘(B) be the equivalent of a nonresident in22 surance producer license for purposes of author23 izing the insurance producer to engage in the 

24 activities described in subparagraph (A) in any 
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1 State where the member pays the licensing fee; 

2 and 

3 ‘‘(C) be the equivalent of a nonresident in4 surance producer license for the purpose of sub5 jecting an insurance producer to all laws, regu6 lations, provisions or other action of any State 

7 concerning revocation, suspension, or other en8 forcement action related to the ability of a 

9 member to engage in any activity within the 

10 scope of authority granted under this subsection 

11 and to all State laws, regulations, provisions, 

12 and actions preserved under paragraph (5). 

13 ‘‘(2) VIOLENT CRIME CONTROL AND LAW EN14 FORCEMENT ACT OF 1994.—Nothing in this subtitle 

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

16 requirement established by section 1033 of title 18, 

17 United States Code. 

18 ‘‘(3) AGENT FOR REMITTING FEES.—The Asso19 ciation shall act as an agent for any member for 

20 purposes of remitting licensing fees to any State 

21 pursuant to paragraph (1). 

22 ‘‘(4) NOTIFICATION OF ACTION.— 

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

24 notify the States (including State insurance 

25 regulators) and the NAIC when an insurance 
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1 producer has satisfied the membership criteria 

2 of this section. The States (including State in3 surance regulators) shall have 10 business days 

4 after the date of the notification in order to 

5 provide the Association with evidence that the 

6 insurance producer does not satisfy the criteria 

7 for membership in the Association. 

8 ‘‘(B) ONGOING DISCLOSURES REQUIRED.— 

9 On an ongoing basis, the Association shall dis10 close to the States (including State insurance 

11 regulators) and the NAIC a list of the States 

12 in which each member is authorized to operate. 

13 The Association shall immediately notify the 

14 States (including State insurance regulators) 

15 and the NAIC when a member is newly author16 ized to operate in one or more States, or is no 

17 longer authorized to operate in one or more 

18 States on the basis of Association membership. 

19 ‘‘(5) PRESERVATION OF CONSUMER PROTEC20 TION AND MARKET CONDUCT REGULATION.— 

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

22 section shall be construed as altering or affect23 ing the applicability or continuing effectiveness 

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

25 of any State, including those described in sub-
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1 paragraph (B), to the extent that the State law, 

2 regulation, provision, or other action is not in3 consistent with the provisions of this subtitle re4 lated to market entry for nonresident insurance 

5 producers, and then only to the extent of the in6 consistency. 

7 ‘‘(B) PRESERVED REGULATIONS.—The 

8 laws, regulations, provisions, or other actions of 

9 any State referred to in subparagraph (A) in10 clude laws, regulations, provisions, or other ac11 tions that— 

12 ‘‘(i) regulate market conduct, insur13 ance producer conduct, or unfair trade 

14 practices; 

15 ‘‘(ii) establish consumer protections; 

16 or 

17 ‘‘(iii) require insurance producers to 

18 be appointed by a licensed or authorized 

19 insurer. 

20 ‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso21 ciation shall be renewed on a biennial basis. 

22 ‘‘(g) CONTINUING EDUCATION.— 

23 ‘‘(1) IN GENERAL.—The Association shall es24 tablish, as a condition of membership, continuing 

25 education requirements which shall be comparable to 
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1 the continuing education requirements under the li2 censing laws of a majority of the States. 

3 ‘‘(2) STATE CONTINUING EDUCATION REQUIRE4 MENTS.—A member may not be required to satisfy 

5 continuing education requirements imposed under 

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

7 State other than the home State of the member. 

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

9 require a member to satisfy continuing education re10 quirements that are equivalent to any continuing 

11 education requirements of the home State of the 

12 member that have been satisfied by the member dur13 ing the applicable licensing period. 

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

15 Association shall not directly or indirectly offer any 

16 continuing education courses for insurance pro17 ducers. 

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

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

20 may place an insurance producer that is a member 

21 of the Association on probation or suspend or revoke 

22 the membership of the insurance producer in the As23 sociation, or assess monetary fines or penalties, as 

24 the Association determines to be appropriate, if— 
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1 ‘‘(A) the insurance producer fails to meet 

2 the applicable membership criteria or other 

3 standards established by the Association; 

4 ‘‘(B) the insurance producer has been sub5 ject to disciplinary action pursuant to a final 

6 adjudicatory proceeding under the jurisdiction 

7 of a State insurance regulator; 

8 ‘‘(C) an insurance license held by the in9 surance producer has been suspended or re10 voked by a State insurance regulator; or 

11 ‘‘(D) the insurance producer has been con12 victed of a crime that would have resulted in 

13 the denial of membership pursuant to sub14 section (a)(4)(L)(i) at the time of application, 

15 and the Association has received a copy of the 

16 final disposition from a court of competent ju17 risdiction. 

18 ‘‘(2) VIOLATIONS OF ASSOCIATION STAND19 ARDS.—The Association shall have the power to in20 vestigate alleged violations of Association standards. 

21 ‘‘(3) REPORTING.—The Association shall imme22 diately notify the States (including State insurance 

23 regulators) and the NAIC when the membership of 

24 an insurance producer has been placed on probation 

25 or has been suspended, revoked, or otherwise termi-
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1 nated, or when the Association has assessed mone2 tary fines or penalties. 

3 ‘‘(i) CONSUMER COMPLAINTS.— 

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

5 ‘‘(A) refer any complaint against a mem6 ber of the Association from a consumer relating 

7 to alleged misconduct or violations of State in8 surance laws to the State insurance regulator 

9 where the consumer resides and, when appro10 priate, to any additional State insurance regu11 lator, as determined by standards adopted by 

12 the Association; and 

13 ‘‘(B) make any related records and infor14 mation available to each State insurance regu15 lator to whom the complaint is forwarded. 

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

17 Association shall maintain a toll-free number for 

18 purposes of this subsection and, as practicable, other 

19 alternative means of communication with consumers, 

20 such as an Internet webpage. 

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

22 State insurance regulators shall provide the Associa23 tion with information regarding the final disposition 

24 of a complaint referred pursuant to paragraph 

25 (1)(A), but nothing shall be construed to compel a 
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1 State to release confidential investigation reports or 

2 other information protected by State law to the As3 sociation. 

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

5 may— 

6 ‘‘(1) share documents, materials, or other infor7 mation, including confidential and privileged docu8 ments, with a State, Federal, or international gov9 ernmental entity or with the NAIC or other appro10 priate entity referred to paragraphs (3) and (4), 

11 provided that the recipient has the authority and 

12 agrees to maintain the confidentiality or privileged 

13 status of the document, material, or other informa14 tion; 

15 ‘‘(2) limit the sharing of information as re16 quired under this subtitle with the NAIC or any 

17 other non-governmental entity, in circumstances 

18 under which the Association determines that the 

19 sharing of such information is unnecessary to fur20 ther the purposes of this subtitle; 

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

22 the NAIC or another appropriate entity, as deter23 mined by the Association, as a central clearinghouse, 

24 for use by the Association and the States (including 

25 State insurance regulators), through which members 
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1 of the Association may disclose their intent to oper2 ate in 1 or more States and pay the licensing fees 

3 to the appropriate States; and 

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

5 or another appropriate entity, as determined by the 

6 Association, as a database, for use by the Associa7 tion and the States (including State insurance regu8 lators) for the collection of regulatory information 

9 concerning the activities of insurance producers. 

10 ‘‘(k) EFFECTIVE DATE.—The provisions of this sec11 tion shall take effect on the later of— 

12 ‘‘(1) the expiration of the 2-year period begin13 ning on the date of enactment of the National Asso14 ciation of Registered Agents and Brokers Reform 

15 Act of 2015; and 

16 ‘‘(2) the date of incorporation of the Associa17 tion. 

18 ‘‘SEC. 324. BOARD OF DIRECTORS. 

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

20 of directors of the Association, which shall have authority 

21 to govern and supervise all activities of the Association. 

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

23 powers and authority of the Association as may be speci24 fied in the bylaws of the Association. 

25 ‘‘(c) COMPOSITION.— 
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1 ‘‘(1) IN GENERAL.—The Board shall consist of 

2 13 members who shall be appointed by the Presi3 dent, by and with the advice and consent of the Sen4 ate, in accordance with the procedures established 

5 under Senate Resolution 116 of the 112th Congress, 

6 of whom— 

7 ‘‘(A) 8 shall be State insurance commis8 sioners appointed in the manner provided in 

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

10 by the President to serve as the chairperson of 

11 the Board until the Board elects one such State 

12 insurance commissioner Board member to serve 

13 as the chairperson of the Board; 

14 ‘‘(B) 3 shall have demonstrated expertise 

15 and experience with property and casualty in16 surance producer licensing; and 

17 ‘‘(C) 2 shall have demonstrated expertise 

18 and experience with life or health insurance 

19 producer licensing. 

20 ‘‘(2) STATE INSURANCE REGULATOR REP21 RESENTATIVES.— 

22 ‘‘(A) RECOMMENDATIONS.—Before making 

23 any appointments pursuant to paragraph 

24 (1)(A), the President shall request a list of rec25 ommended candidates from the States through 
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1 the NAIC, which shall not be binding on the 

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

3 recommendations not later than 15 business 

4 days after the date of the request, the President 

5 may make the requisite appointments without 

6 considering the views of the NAIC. 

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

8 than 4 Board members appointed under para9 graph (1)(A) shall belong to the same political 

10 party. 

11 ‘‘(C) FORMER STATE INSURANCE COMMIS12 SIONERS.— 

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

14 each currently serving State insurance 

15 commissioner an appointment to the 

16 Board, fewer than 8 State insurance com17 missioners have accepted appointment to 

18 the Board, the President may appoint the 

19 remaining State insurance commissioner 

20 Board members, as required under para21 graph (1)(A), of the appropriate political 

22 party as required under subparagraph (B), 

23 from among individuals who are former 

24 State insurance commissioners. 
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1 ‘‘(ii) LIMITATION.—A former State 

2 insurance commissioner appointed as de3 scribed in clause (i) may not be employed 

4 by or have any present direct or indirect fi5 nancial interest in any insurer, insurance 

6 producer, or other entity in the insurance 

7 industry, other than direct or indirect own8 ership of, or beneficial interest in, an in9 surance policy or annuity contract written 

10 or sold by an insurer. 

11 ‘‘(D) SERVICE THROUGH TERM.—If a 

12 Board member appointed under paragraph 

13 (1)(A) ceases to be a State insurance commis14 sioner during the term of the Board member, 

15 the Board member shall cease to be a Board 

16 member. 

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

18 making any appointment pursuant to subparagraph 

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

20 recommendations for candidates from groups rep21 resenting the category of individuals described, 

22 which shall not be binding on the President. 

23 ‘‘(4) STATE INSURANCE COMMISSIONER DE24 FINED.—For purposes of this subsection, the term 

25 ‘State insurance commissioner’ means a person who 
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1 serves in the position in State government, or on the 

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

3 insurance regulatory authority for the State. 

4 ‘‘(d) TERMS.— 

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

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

7 member shall be 2 years. 

8 ‘‘(2) EXCEPTIONS.— 

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

10 shall be 1 year, as designated by the President 

11 at the time of the nomination of the subject 

12 Board members for— 

13 ‘‘(i) 4 of the State insurance commis14 sioner Board members initially appointed 

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

16 than 2 shall belong to the same political 

17 party; 

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

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

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

21 appointed under paragraph (1)(C). 

22 ‘‘(B) EXPIRATION OF TERM.—A Board 

23 member may continue to serve after the expira24 tion of the term to which the Board member 
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1 was appointed for the earlier of 2 years or until 

2 a successor is appointed. 

3 ‘‘(C) MID-TERM APPOINTMENTS.—A 

4 Board member appointed to fill a vacancy oc5 curring before the expiration of the term for 

6 which the predecessor of the Board member 

7 was appointed shall be appointed only for the 

8 remainder of that term. 

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

10 may be reappointed to successive terms. 

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

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

13 after the date of enactment of the National Association 

14 of Registered Agents and Brokers Reform Act of 2015. 

15 ‘‘(f) MEETINGS.— 

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

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

18 ‘‘(B) as requested in writing to the chair19 person by not fewer than 5 Board members; or 

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

21 of the Association. 

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

23 Board members shall constitute a quorum. 
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1 ‘‘(3) VOTING.—Decisions of the Board shall re2 quire the approval of a majority of all Board mem3 bers present at a meeting, a quorum being present. 

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

5 its first meeting not later than 45 days after the 

6 date on which all initial Board members have been 

7 appointed. 

8 ‘‘(g) RESTRICTION ON CONFIDENTIAL INFORMA9 TION.—Board members appointed pursuant to subpara10 graphs (B) and (C) of subsection (c)(1) shall not have ac11 cess to confidential information received by the Associa12 tion in connection with complaints, investigations, or dis13 ciplinary proceedings involving insurance producers. 

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

15 Board shall issue and enforce an ethical conduct code to 

16 address permissible and prohibited activities of Board 

17 members and Association officers, employees, agents, or 

18 consultants. The code shall, at a minimum, include provi19 sions that prohibit any Board member or Association offi20 cer, employee, agent or consultant from— 

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

22 course of performing Association duties; 

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

24 the making of any Association decision, the outcome 

25 of which the Board member, officer, employee, 
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1 agent, or consultant knows or had reason to know 

2 would have a reasonably foreseeable material finan3 cial effect, distinguishable from its effect on the pub4 lic generally, on the person or a member of the im5 mediate family of the person; 

6 ‘‘(3) accepting any gift from any person or enti7 ty other than the Association that is given because 

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

9 ‘‘(4) making political contributions to any per10 son or entity on behalf of the Association; and 

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

12 behalf of the Association. 

13 ‘‘(i) COMPENSATION.— 

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), no Board member may receive any com16 pensation from the Association or any other person 

17 or entity on account of Board membership. 

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

19 Board members may be reimbursed only by the As20 sociation for travel expenses, including per diem in 

21 lieu of subsistence, at rates consistent with rates au22 thorized for employees of Federal agencies under 

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

24 Code, while away from home or regular places of 
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1 business in performance of services for the Associa2 tion. 

3 ‘‘SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY AC4 TIONS. 

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

6 STANDARDS.— 

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

8 adopt procedures for the adoption of bylaws and 

9 standards that are similar to procedures under sub10 chapter II of chapter 5 of title 5, United States 

11 Code (commonly known as the ‘Administrative Pro12 cedure Act’). 

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

14 Board shall submit to the President, through the 

15 Department of the Treasury, and the States (includ16 ing State insurance regulators), and shall publish on 

17 the website of the Association, all proposed bylaws 

18 and standards of the Association, or any proposed 

19 amendment to the bylaws or standards of the Asso20 ciation, accompanied by a concise general statement 

21 of the basis and purpose of such proposal. 

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

23 or standard of the Association, and any proposed 

24 amendment to the bylaws or standards of the Asso25 ciation, shall take effect, after notice under para-
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1 graph (2) and opportunity for public comment, on 

2 such date as the Association may designate, unless 

3 suspended under section 329(c). 

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

5 this section shall be construed to subject the Board 

6 or the Association to the requirements of subchapter 

7 II of chapter 5 of title 5, United States Code (com8 monly known as the ‘Administrative Procedure 

9 Act’). 

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

11 ‘‘(1) SPECIFICATION OF CHARGES.—In any pro12 ceeding to determine whether membership shall be 

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

14 determine whether a member of the Association 

15 should be placed on probation (referred to in this 

16 section as a ‘disciplinary action’) or whether to as17 sess fines or monetary penalties, the Association 

18 shall bring specific charges, notify the member of 

19 the charges, give the member an opportunity to de20 fend against the charges, and keep a record. 

21 ‘‘(2) SUPPORTING STATEMENT.—A determina22 tion to take disciplinary action shall be supported by 

23 a statement setting forth— 

24 ‘‘(A) any act or practice in which the mem25 ber has been found to have been engaged; 
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1 ‘‘(B) the specific provision of this subtitle 

2 or standard of the Association that any such 

3 act or practice is deemed to violate; and 

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

5 for the sanction. 

6 ‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REP7 RESENTATIVES.—Board members appointed pursu8 ant to section 324(c)(3) may not— 

9 ‘‘(A) participate in any disciplinary action 

10 or be counted toward establishing a quorum 

11 during a disciplinary action; and 

12 ‘‘(B) have access to confidential informa13 tion concerning any disciplinary action. 

14 ‘‘SEC. 326. POWERS. 

15 ‘‘In addition to all the powers conferred upon a non16 profit corporation by the District of Columbia Nonprofit 

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

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

19 as the Association finds necessary to impose to cover 

20 the costs of its operations; 

21 ‘‘(2) adopt, amend, and repeal bylaws, proce22 dures, or standards governing the conduct of Asso23 ciation business and performance of its duties; 
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1 ‘‘(3) establish procedures for providing notice 

2 and opportunity for comment pursuant to section 

3 325(a); 

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

5 necessary to carry out the duties of the Association; 

6 ‘‘(5) hire employees, professionals, or special7 ists, and elect or appoint officers, and to fix their 

8 compensation, define their duties and give them ap9 propriate authority to carry out the purposes of this 

10 subtitle, and determine their qualification; 

11 ‘‘(6) establish personnel policies of the Associa12 tion and programs relating to, among other things, 

13 conflicts of interest, rates of compensation, where 

14 applicable, and qualifications of personnel; 

15 ‘‘(7) borrow money; and 

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

17 Association determines to be necessary and appro18 priate to organize and begin operations of the Asso19 ciation, which shall be treated as loans to be repaid 

20 by the Association with interest at market rate. 

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

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

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

24 the President, through the Department of the Treasury, 

25 and the States (including State insurance regulators), and 
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1 shall publish on the website of the Association, a written 

2 report regarding the conduct of its business, and the exer3 cise of the other rights and powers granted by this sub4 title, during such fiscal year. 

5 ‘‘(b) FINANCIAL STATEMENTS.—Each report sub6 mitted under subsection (a) with respect to any fiscal year 

7 shall include audited financial statements setting forth the 

8 financial position of the Association at the end of such 

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

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

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

12 BOARD MEMBERS, OFFICERS, AND EMPLOY13 EES OF THE ASSOCIATION. 

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

15 deemed to be an insurer or insurance producer within the 

16 meaning of any State law, rule, regulation, or order regu17 lating or taxing insurers, insurance producers, or other en18 tities engaged in the business of insurance, including pro19 visions imposing premium taxes, regulating insurer sol20 vency or financial condition, establishing guaranty funds 

21 and levying assessments, or requiring claims settlement 

22 practices. 

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

24 AND EMPLOYEES.—No Board member, officer, or em25 ployee of the Association shall be personally liable to any 
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1 person for any action taken or omitted in good faith in 

2 any matter within the scope of their responsibilities in con3 nection with the Association. 

4 ‘‘SEC. 329. PRESIDENTIAL OVERSIGHT. 

5 ‘‘(a) REMOVAL OF BOARD.—If the President deter6 mines that the Association is acting in a manner contrary 

7 to the interests of the public or the purposes of this sub8 title or has failed to perform its duties under this subtitle, 

9 the President may remove the entire existing Board for 

10 the remainder of the term to which the Board members 

11 were appointed and appoint, in accordance with section 

12 324 and with the advice and consent of the Senate, in 

13 accordance with the procedures established under Senate 

14 Resolution 116 of the 112th Congress, new Board mem15 bers to fill the vacancies on the Board for the remainder 

16 of the terms. 

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

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

19 malfeasance in office. 

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

21 PROHIBITION OF ACTIONS.—Following notice to the 

22 Board, the President, or a person designated by the Presi23 dent for such purpose, may suspend the effectiveness of 

24 any bylaw or standard, or prohibit any action, of the Asso-
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1 ciation that the President or the designee determines is 

2 contrary to the purposes of this subtitle. 

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

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

5 regulations, provisions, or other actions purporting to reg6 ulate insurance producers shall be preempted to the extent 

7 provided in subsection (b). 

8 ‘‘(b) PROHIBITED ACTIONS.— 

9 ‘‘(1) IN GENERAL.—No State shall— 

10 ‘‘(A) impede the activities of, take any ac11 tion against, or apply any provision of law or 

12 regulation arbitrarily or discriminatorily to, any 

13 insurance producer because that insurance pro14 ducer or any affiliate plans to become, has ap15 plied to become, or is a member of the Associa16 tion; 

17 ‘‘(B) impose any requirement upon a mem18 ber of the Association that it pay fees different 

19 from those required to be paid to that State 

20 were it not a member of the Association; or 

21 ‘‘(C) impose any continuing education re22 quirements on any nonresident insurance pro23 ducer that is a member of the Association. 
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1 ‘‘(2) STATES OTHER THAN A HOME STATE.— 

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

3 of the Association, shall— 

4 ‘‘(A) impose any licensing, personal or cor5 porate qualifications, education, training, expe6 rience, residency, continuing education, or 

7 bonding requirement upon a member of the As8 sociation that is different from the criteria for 

9 membership in the Association or renewal of 

10 such membership; 

11 ‘‘(B) impose any requirement upon a mem12 ber of the Association that it be licensed, reg13 istered, or otherwise qualified to do business or 

14 remain in good standing in the State, including 

15 any requirement that the insurance producer 

16 register as a foreign company with the sec17 retary of state or equivalent State official; 

18 ‘‘(C) require that a member of the Associa19 tion submit to a criminal history record check 

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

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

22 appointment requirements upon a member of 

23 the Association, or require a member of the As24 sociation to be authorized to operate as an in25 surance producer, in order to sell, solicit, or ne-
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1 gotiate insurance for commercial property and 

2 casualty risks to an insured with risks located 

3 in more than one State, if the member is li4 censed or otherwise authorized to operate in the 

5 State where the insured maintains its principal 

6 place of business and the contract of insurance 

7 insures risks located in that State. 

8 ‘‘(3) PRESERVATION OF STATE DISCIPLINARY

9 AUTHORITY.—Nothing in this section may be con10 strued to prohibit a State from investigating and 

11 taking appropriate disciplinary action, including sus12 pension or revocation of authority of an insurance 

13 producer to do business in a State, in accordance 

14 with State law and that is not inconsistent with the 

15 provisions of this section, against a member of the 

16 Association as a result of a complaint or for any al17 leged activity, regardless of whether the activity oc18 curred before or after the insurance producer com19 menced doing business in the State pursuant to As20 sociation membership. 

21 ‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY 

22 REGULATORY AUTHORITY. 

23 ‘‘The Association shall coordinate with the Financial 

24 Industry Regulatory Authority in order to ease any admin25 istrative burdens that fall on members of the Association 
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1 that are subject to regulation by the Financial Industry 

2 Regulatory Authority, consistent with the requirements of 

3 this subtitle and the Federal securities laws. 

4 ‘‘SEC. 332. RIGHT OF ACTION. 

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

6 a decision or action of the Association may, after reason7 ably exhausting available avenues for resolution within the 

8 Association, commence a civil action in an appropriate 

9 United States district court, and obtain all appropriate re10 lief. 

11 ‘‘(b) ASSOCIATION INTERPRETATIONS.—In any ac12 tion under subsection (a), the court shall give appropriate 

13 weight to the interpretation of the Association of its by14 laws and standards and this subtitle. 

15 ‘‘SEC. 333. FEDERAL FUNDING PROHIBITED. 

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

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

18 reimburse, the Association for, the costs of establishing 

19 or operating the Association. 

20 ‘‘SEC. 334. DEFINITIONS. 

21 ‘‘For purposes of this subtitle, the following defini22 tions shall apply: 

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

24 entity’ means a corporation, association, partnership, 
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1 limited liability company, limited liability partner2 ship, or other legal entity. 

3 ‘‘(2) DEPOSITORY INSTITUTION.—The term ‘de4 pository institution’ has the meaning as in section 3 

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

6 1813). 

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

8 means the State in which the insurance producer 

9 maintains its principal place of residence or business 

10 and is licensed to act as an insurance producer. 

11 ‘‘(4) INSURANCE.—The term ‘insurance’ means 

12 any product, other than title insurance or bail 

13 bonds, defined or regulated as insurance by the ap14 propriate State insurance regulatory authority. 

15 ‘‘(5) INSURANCE PRODUCER.—The term ‘insur16 ance producer’ means any insurance agent or 

17 broker, excess or surplus lines broker or agent, in18 surance consultant, limited insurance representative, 

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

20 or negotiates policies of insurance or offers advice, 

21 counsel, opinions or services related to insurance. 

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

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

24 United States Code. 
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1 ‘‘(7) PRINCIPAL PLACE OF BUSINESS.—The 

2 term ‘principal place of business’ means the State in 

3 which an insurance producer maintains the head4 quarters of the insurance producer and, in the case 

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

6 entity direct, control, and coordinate the business 

7 activities of the business entity. 

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

9 term ‘principal place of residence’ means the State 

10 in which an insurance producer resides for the great11 est number of days during a calendar year. 

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

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

14 United States, and Puerto Rico, Guam, American 

15 Samoa, the Trust Territory of the Pacific Islands, 

16 the Virgin Islands, and the Northern Mariana Is17 lands. 

18 ‘‘(10) STATE LAW.— 

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

20 includes all laws, decisions, rules, regulations, 

21 or other State action having the effect of law, 

22 of any State. 

23 ‘‘(B) LAWS APPLICABLE IN THE DISTRICT

24 OF COLUMBIA.—A law of the United States ap25 plicable only to or within the District of Colum-
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1 bia shall be treated as a State law rather than 

2 a law of the United States.’’. 

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

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

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

6 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.’’. 

7 TITLE III—BUSINESS RISK MITI8 GATION AND PRICE STA9 BILIZATION 

10 SEC. 301. SHORT TITLE. 

11 This title may be cited as the ‘‘Business Risk Mitiga12 tion and Price Stabilization Act of 2015’’. 

13 SEC. 302. MARGIN REQUIREMENTS. 

14 (a) COMMODITY EXCHANGE ACT AMENDMENT.— 

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

16 6s(e)), as added by section 731 of the Dodd-Frank Wall 
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1 Street Reform and Consumer Protection Act, is amended 

2 by adding at the end the following new paragraph: 

3 ‘‘(4) APPLICABILITY WITH RESPECT TO

4 COUNTERPARTIES.—The requirements of paragraphs 

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

6 variation margin requirements imposed by rules 

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

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

9 counterparty qualifies for an exception under section 

10 2(h)(7)(A), or an exemption issued under section 

11 4(c)(1) from the requirements of section 2(h)(1)(A) 

12 for cooperative entities as defined in such exemption, 

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

14 (b) SECURITIES EXCHANGE ACT AMENDMENT.— 

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

16 (15 U.S.C. 78o–10(e)), as added by section 764(a) of the 

17 Dodd-Frank Wall Street Reform and Consumer Protec18 tion Act, is amended by adding at the end the following 

19 new paragraph: 

20 ‘‘(4) APPLICABILITY WITH RESPECT TO

21 COUNTERPARTIES.—The requirements of paragraphs 

22 (2)(A)(ii) and (2)(B)(ii) shall not apply to a secu23 rity-based swap in which a counterparty qualifies for 

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

25 criteria in section 3C(g)(4).’’. 
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1 SEC. 303. IMPLEMENTATION. 

2 The amendments made by this title to the Commodity 

3 Exchange Act shall be implemented— 

4 (1) without regard to— 

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

6 Code; and 

7 (B) the notice and comment provisions of 

8 section 553 of title 5, United States Code; 

9 (2) through the promulgation of an interim 

10 final rule, pursuant to which public comment will be 

11 sought before a final rule is issued; and 

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

13 to changes to rules and regulations, or proposed 

14 rules and regulations, that are limited to and di15 rectly a consequence of such amendments. 

Passed the House of Representatives January 7, 

2015. 

Attest: 

Clerk. 

114TH CONGRESS 

1ST SESSION H. R. 26 

AN ACT 

To extend the termination date of the Terrorism 

purposes. rorism Risk Insurance Act of 2002, and for other Insurance Program established under the Ter-