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‘‘(i) search the records of the Criminal 
Justice Information Services Division of 
the Federal Bureau of Investigation, and 
any other similar database over which the 
Attorney General has authority and deems 
appropriate, for any criminal background 
records (including wanted persons informa-
tion) corresponding to the identification in-
formation provided under subparagraph 
(F); and 
‘‘(ii) provide any relevant information 
contained in such records that pertain to 
the request directly to the Association. 
‘‘(E) 
RELEVANT
INFORMATION
DE-
FINED.—For purposes of subparagraph (D)(ii), 
the term ‘relevant information’ means any of 
the following records: 
‘‘(i) All felony convictions. 
‘‘(ii) All misdemeanor convictions in-
volving— 
‘‘(I) violation of a law involving 
financial activities; 
‘‘(II) dishonesty or breach of 
trust, within the meaning of section 
1033 of title 18, United States Code, 
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including taking, withholding, mis-
appropriating, or converting money or 
property; 
‘‘(III) failure to comply with 
child support obligations; 
‘‘(IV) failure to pay taxes; and 
‘‘(V) domestic violence, child 
abuse, burglary of a dwelling, or a 
criminal offense that has as an ele-
ment the use or attempted use of 
physical force, or threat of great bod-
ily harm, or the use, attempted use, 
or threatened use of a deadly weapon, 
against an individual, including com-
mitting or attempting to commit mur-
der, manslaughter, kidnapping, aggra-
vated assault, forcible sex offenses, 
robbery, arson, extortion, and extor-
tionate extension of credit. 
‘‘(F) FORM
OF
REQUEST.—A request 
under subparagraph (C) shall include a copy of 
any necessary identification information re-
quired by the Attorney General concerning the 
person about whom the record is requested and 
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a statement signed by the person acknowledging 
that the Association may request the search. 
‘‘(G) LIMITATION ON PERMISSIBLE USES 
OF INFORMATION.—Information obtained under 
this section may— 
‘‘(i) be used only for regulatory or law 
enforcement purposes or for purposes of 
determining compliance with membership 
criteria established by the Association; 
‘‘(ii) be disclosed only to the Associa-
tion, State insurance regulators, or Federal 
or State law enforcement agencies; and 
‘‘(iii) be disclosed only if the recipient 
agrees to— 
‘‘(I) maintain the confidentiality 
of such information; and 
‘‘(II) limit the use of such infor-
mation to the purposes described in 
clause (i). 
‘‘(H) PENALTY
FOR
IMPROPER
USE.— 
Whoever uses any information obtained under 
this section knowingly and willfully for an un-
authorized purpose shall be fined under title 18, 
United States Code, imprisoned for not more 
than 2 years, or both. 
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‘‘(I) RELIANCE
ON
INFORMATION.—Nei-
ther the Association nor any of its directors, of-
ficers, or employees who reasonably rely on in-
formation provided under this section shall be 
liable in any action for using information as 
permitted under this section in good faith. 
‘‘(J) CLARIFICATION OF SECTION 1033.— 
‘‘(i) IN
GENERAL.—With respect to 
any 
action 
brought 
under 
section 
1033(e)(1)(B) of title 18, United States 
Code, no person engaged in the business of 
conducting financial activities shall be sub-
ject to any penalty resulting from such sec-
tion if the individual whom the person per-
mitted to engage in the business of insur-
ance is a member of the Association or is 
licensed, or approved (as part of an appli-
cation or otherwise), by a State insurance 
regulator that performs criminal back-
ground checks under this section, unless 
such person knows that the individual is in 
violation of section 1033(e)(1)(A) of such 
title. 
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‘‘(ii) 
FINANCIAL
ACTIVITIES
DE-
FINED.—For purposes of this subpara-
graph, the term ‘financial activities’— 
‘‘(I) means banking activities (in-
cluding the ownership of a bank), se-
curities activities, insurance activities, 
or commodities activities; and 
‘‘(II) includes all activities that 
are financial in nature or are inci-
dental to a financial activity (as de-
fined under section 4(k) of the Bank 
Holding Company Act of 1956). 
‘‘(K) FEES.—The Attorney General may 
charge a reasonable fee for the provision of in-
formation under this paragraph. 
‘‘(L) RULE OF CONSTRUCTION.—No provi-
sion of this paragraph shall be construed as— 
‘‘(i) requiring a State insurance regu-
lator to perform criminal background 
checks under this section; or 
‘‘(ii) superseding or otherwise limiting 
any other authority that allows access to 
criminal background records. 
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‘‘(M) REGULATIONS.—The Attorney Gen-
eral may prescribe regulations to carry out this 
paragraph. 
‘‘(N) INELIGIBILITY FOR MEMBERSHIP.— 
The Association may deny membership to any 
State-licensed insurance producer on the basis 
of criminal history information obtained pursu-
ant to subparagraph (D). 
‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI-
TERIA.—The Association may establish membership cri-
teria that— 
‘‘(1) bear a reasonable relationship to the pur-
poses for which the Association was established; and 
‘‘(2) do not unfairly limit the access of smaller 
agencies to the Association membership, including 
imposing discriminatory membership fees on smaller 
insurance producers. 
‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES 
OF MEMBERSHIP.— 
‘‘(1) CLASSES OF MEMBERSHIP.—The Associa-
tion may establish separate classes of membership, 
with separate criteria, if the Association reasonably 
determines that performance of different duties re-
quires different levels of education, training, experi-
ence, or other qualifications. 
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‘‘(2) CATEGORIES.— 
‘‘(A) SEPARATE
CATEGORIES
FOR
PRO-
DUCERS PERMITTED.—The Association may es-
tablish separate categories of membership for 
producers and for other persons within each 
class, based on the types of licensing categories 
that exist under State laws. 
‘‘(B) SEPARATE TREATMENT FOR DEPOSI-
TORY INSTITUTIONS PROHIBITED.—No special 
categories of membership, and no distinct mem-
bership criteria, shall be established for mem-
bers which are depository institutions or for 
employees, agents, or affiliates of depository in-
stitutions. 
‘‘(d) MEMBERSHIP CRITERIA.— 
‘‘(1) IN GENERAL.—The Association may estab-
lish criteria for membership which shall include 
standards for personal qualifications, education, 
training, and experience. 
‘‘(2) QUALIFICATIONS.—In establishing criteria 
under paragraph (1), the Association shall consider 
the NAIC Producer Licensing Model Act and the 
highest levels of insurance producer qualifications 
established under the licensing laws of the States. 
‘‘(3) ASSISTANCE FROM STATES.— 
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‘‘(A) IN GENERAL.—The Association may 
request a State to provide assistance in inves-
tigating and evaluating a prospective member’s 
eligibility for membership in the Association. 
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as requiring or 
authorizing any State to adopt new or addi-
tional requirements concerning the licensing or 
evaluation of insurance producers. 
‘‘(4) DENIAL OF MEMBERSHIP.—The Associa-
tion may deny membership to any State-licensed in-
surance producer for failure to meet the membership 
criteria established by the Association. 
‘‘(e) EFFECT OF MEMBERSHIP.— 
‘‘(1) AUTHORITY OF ASSOCIATION MEMBERS.— 
Membership in the Association shall— 
‘‘(A) authorize an insurance producer to 
sell, solicit, negotiate, effect, procure, deliver, 
renew, continue, or bind insurance in any State 
for which the member pays the licensing fee set 
by such State for any line or lines of insurance 
specified in such producer’s home State license, 
and exercise all such incidental powers, as shall 
be necessary to carry out such activities, includ-
ing claims adjustments and settlement, risk 
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management, employee benefits advice, retire-
ment planning, and any other insurance-related 
consulting activities; 
‘‘(B) be the equivalent of a nonresident in-
surance producer license issued in any state 
where the member pays the licensing fee; and 
‘‘(C) subject an insurance producer to all 
laws, regulations, provisions or other action of 
any State concerning revocation or suspension 
of a member’s ability to engage in any activity 
within the scope of authority granted under this 
subsection and to all state laws, regulations, 
provisions and actions preserved under para-
graph (4). 
‘‘(2) DUPLICATIVE LICENSES.—No State, other 
than the member’s home State, may require an indi-
vidual member to obtain a business entity license or 
membership in order to engage in any activity within 
the scope of authority granted in paragraph (1) or 
in order for the member or any employer, employee, 
or affiliate of the member to receive compensation 
for the member’s performance of any such activity. 
‘‘(3) AGENT FOR REMITTING FEES.—The Asso-
ciation shall act as any member’s agent for purposes 
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of remitting licensing fees to any State pursuant to 
paragraph (1). 
‘‘(4) PRESERVATION OF STATE CONSUMER PRO-
TECTION AND MARKET CONDUCT REGULATION.—No 
provision of this section shall be construed as alter-
ing or affecting the continuing effectiveness of any 
law, regulation, provision, or other action of any 
State which purports to regulate market conduct or 
unfair trade practices or establish consumer protec-
tions to the extent that such law, regulation, provi-
sion, or other action is not inconsistent with the pro-
visions of this subtitle, and then only to the extent 
of such inconsistency. 
‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso-
ciation shall be renewed on a biennial basis. 
‘‘(g) CONTINUING EDUCATION.— 
‘‘(1) IN GENERAL.—The Association shall es-
tablish, as a condition of membership, continuing 
education requirements which shall be comparable to 
the continuing education requirements under the li-
censing laws of a majority of the States. 
‘‘(2) STATE CONTINUING EDUCATION REQUIRE-
MENTS.—A member may not be required to satisfy 
continuing education requirements imposed under 
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the laws, regulations, provisions, or actions of any 
State other than such member’s home State. 
‘‘(3) RECIPROCITY.—The Association shall not 
require a member to satisfy continuing education re-
quirements that are equivalent to any continuing 
education requirements of the member’s home State 
that have been satisfied by the member during the 
applicable licensing period. 
‘‘(4) LIMITATION ON ASSOCIATION.—The Asso-
ciation shall not directly or indirectly offer any con-
tinuing education courses for insurance producers. 
‘‘(h) PROBATION, SUSPENSION AND REVOCATION.— 
The Association may place an insurance producer that is 
a member of the Association on probation or suspend or 
revoke such producer’s membership in the Association, as 
the Association determines to be appropriate, if— 
‘‘(1) the producer fails to meet the applicable 
membership criteria of the Association; or 
‘‘(2) the producer has been subject to discipli-
nary action pursuant to a final adjudicatory pro-
ceeding under the jurisdiction of a State insurance 
regulator. 
‘‘(i) OFFICE OF CONSUMER COMPLAINTS.— 
‘‘(1) IN GENERAL.—The Association shall es-
tablish an office of consumer complaints that shall— 
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‘‘(A) receive and, when appropriate, inves-
tigate complaints from both consumers and 
State insurance regulators related to members 
of the Association; 
‘‘(B) maintain records of all complaints re-
ceived in accordance with subparagraph (A) and 
make such records available to the National As-
sociation of Insurance Commissioners (herein-
after in this subtitle referred to as the ‘NAIC’) 
and to each State insurance regulator for the 
State of residence of the consumer who filed the 
complaint; and 
‘‘(C) refer, when appropriate, any such 
complaint to any appropriate State insurance 
regulator. 
‘‘(2) TELEPHONE
AND
OTHER
ACCESS.—The 
office of consumer complaints shall maintain a toll- 
free telephone number for the purpose of this sub-
section and, as practicable, other alternative means 
of communication with consumers, such as an Inter-
net web page. 
‘‘SEC. 324. BOARD OF DIRECTORS. 
‘‘(a) ESTABLISHMENT.—There is established the 
board of directors of the Association (hereafter in this sub-
title referred to as the ‘Board’) for the purpose of gov-
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‘‘(ii) 
PRESIDENTIAL
APPOINTMENT 
WITHOUT A LIST.—If the NAIC fails to 
provide a list within 90 days after the date 
of the enactment of the National Associa-
tion of Registered Agents and Brokers Re-
form Act of 2008, or if any list that is pro-
vided does not include at least 10 rec-
ommended candidates or comply with the 
requirements of paragraph (2), the Presi-
dent shall, with the advice and consent of 
the Senate, appoint 6 members to the 
Board without considering the views of the 
NAIC, in accordance with requirements of 
paragraph (2). 
‘‘(C) PROCEDURES FOR OBTAINING INSUR-
ANCE
TRADE
ASSOCIATION
GROUP
APPOINT-
MENT RECOMMENDATIONS.— 
‘‘(i) 
PRESIDENTIAL
APPOINTMENT 
FROM LIST.—If any group of nominating 
insurance 
trade 
associations 
identified 
under subparagraph (A), (B), or (C) of 
paragraph (3) fails to appoint members of 
the Board as provided under such subpara-
graph within 60 days after the date of the 
enactment of the National Association of 
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Registered Agents and Brokers Reform 
Act of 2008, the President shall, with the 
advice and consent of the Senate, make the 
requisite appointments pursuant to each 
such subparagraph from a list of can-
didates recommended to the President by 
such group. 
‘‘(ii) 
PRESIDENTIAL
APPOINTMENT 
WITHOUT
A
LIST.—If the nominating 
group of insurance trade associations iden-
tified under subparagraph (A), (B), or (C) 
of paragraph (3) fails to provide a list 
within 90 days after date of the enactment 
of the National Association of Registered 
Agents and Brokers Reform Act of 2008, 
or if any list that is provided does not com-
ply with the requirements of the subpara-
graph, the President shall, with the advice 
and consent of the Senate, make the req-
uisite appointments without considering 
the views of such group. 
‘‘(iii) LIST OF RECOMMENDATIONS.— 
Any list of recommended candidates pro-
vided to the President by a nominating 
group of insurance trade associations iden-
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tified under subparagraph (A), (B), or (C) 
of paragraph (3) shall include— 
‘‘(I) at least 2 recommended can-
didates from each association identi-
fied under paragraph (3)(A); 
‘‘(II) at least 2 recommended 
candidates, in the case of associations 
identified under paragraph (3)(B); 
and 
‘‘(III) at least 2 recommended 
candidates, in the case of associations 
identified under paragraph (3)(C). 
‘‘(D) ALTERNATE APPOINTMENT OF STATE 
INSURANCE COMMISSIONERS.—If fewer than 6 
State insurance commissioners accept appoint-
ment to the Board pursuant to subparagraph 
(B), the President, with the advice and consent 
of the Senate, may appoint the remaining State 
insurance commissioner members of the Board 
from among individuals who are current or 
former State insurance commissioners, to the 
extent that— 
‘‘(i) any former insurance commis-
sioner appointed by the President shall not 
be employed by or have a present direct or 
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indirect financial interest in any insurer or 
other entity in the insurance industry 
other than direct or indirect ownership of, 
or beneficial interest in, any insurance pol-
icy or annuity contract written or sold by 
an insurer; and 
‘‘(ii) not more than 3 members ap-
pointed to membership on the Board under 
this subparagraph belong to the same po-
litical party as the President. 
‘‘(5) STATE
INSURANCE
COMMISSIONER
DE-
FINED.—For purposes of this subsection, the term 
‘State insurance commissioner’ means a person who 
serves in the position in State government, or on the 
board, commission, or other body that is the prin-
cipal insurance regulatory authority for the State. 
‘‘(d) TERMS.— 
‘‘(1) IN GENERAL.—The term of each Board 
member shall, after the initial appointment of the 
members of the Board, be for 2 years, with 1⁄2 of the 
members to be appointed each year and divided as 
evenly as possible between members appointed under 
paragraphs (2) and (3) of subsection (c). 
‘‘(2) LIMITATION
ON
SUCCESSIVE
TERMS.— 
Only Board members appointed under subsections 
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(c)(2) and (c)(3)(A) may be re-appointed for an ad-
ditional term. 
‘‘(e) BOARD VACANCIES.— 
‘‘(1) IN GENERAL.—Any vacancy on the board 
of directors shall be filled as provided under sub-
paragraph (A) or (B) of paragraph (2), and any 
member appointed to fill a vacancy occurring before 
the expiration of the term for which the member’s 
predecessor was appointed shall be appointed only 
for the remainder of that term. 
‘‘(2) ALTERNATE APPOINTMENT.—If the NAIC 
or a nominating group of trade associations fails to 
appoint a member to the Board to fill a vacancy 
within 60 days from the date that such vacancy oc-
curs, the President shall, with the advice and con-
sent of the Senate, make the requisite appointment 
pursuant to the procedures established under the ap-
plicable subparagraph of subsection (c)(4). 
‘‘(f) MEETINGS.—The Board shall meet at the call 
of the chairperson, or as otherwise provided by the bylaws 
of the Association. 
‘‘SEC. 325. OFFICERS. 
‘‘(a) POSITIONS.—The officers of the Association 
shall consist of a chairperson and a vice chairperson of 
the Board, an executive director, secretary, and treasurer 
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of the Association, and such other officers and assistant 
officers as may be deemed necessary. 
‘‘(b) MANNER OF SELECTION.—Each officer of the 
Board and the Association shall be elected or appointed 
at such time, in such manner, and for such terms as may 
be prescribed in the bylaws of the Association. 
‘‘SEC. 326. BYLAWS, RULES, AND DISCIPLINARY ACTION. 
‘‘(a) ADOPTION AND AMENDMENT OF BYLAWS.— 
‘‘(1) COPY
REQUIRED
TO
BE
FILED.—The 
board of directors of the Association shall submit to 
the President, the Congress, and the NAIC any pro-
posed bylaw or rules of the Association or any pro-
posed amendment to the bylaws or rules, accom-
panied by a concise general statement of the basis 
and purpose of such proposal. 
‘‘(2) EFFECTIVE DATE.—Any proposed bylaw 
or rule or proposed amendment to the bylaws or 
rules shall take effect, after notice published in an 
insurance trade journal and opportunity for com-
ment, upon such date as the Association may des-
ignate. 
‘‘(b) DISCIPLINARY ACTION BY THE ASSOCIATION.— 
‘‘(1) SPECIFICATION OF CHARGES.—In any pro-
ceeding to determine whether membership shall be 
denied, suspended, revoked, or not renewed (here-
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after in this section referred to as a ‘disciplinary ac-
tion’) or to determine whether a member of the As-
sociation should be placed on probation, the Associa-
tion shall bring specific charges, notify such member 
of such charges, give the member an opportunity to 
defend against the charges, and keep a record. 
‘‘(2) SUPPORTING STATEMENT.—A determina-
tion to take disciplinary action shall be supported by 
a statement setting forth— 
‘‘(A) any act or practice in which such 
member has been found to have been engaged; 
‘‘(B) the specific provision of this subtitle, 
the rules or regulations under this subtitle, or 
the rules of the Association which any such act 
or practice is deemed to violate; and 
‘‘(C) the sanction imposed and the reason 
for such sanction. 
‘‘SEC. 327. POWERS. 
‘‘In addition to all the powers conferred upon a non-
profit corporation by the District of Columbia Nonprofit 
Corporation Act, the Association shall have the following 
powers: 
‘‘(1) To establish and collect such membership 
fees as the Association finds necessary to impose to 
cover the costs of its operations. 
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‘‘(2) To adopt, amend, and repeal bylaws and 
rules governing the conduct of Association business 
and performance of its duties. 
‘‘(3) To establish procedures for providing no-
tice and opportunity for comment pursuant to sec-
tion 326(a). 
‘‘(4) To enter into and perform such agree-
ments as necessary to carry out its duties. 
‘‘(5) To hire employees, professionals or special-
ists, and elect or appoint officers, and to fix their 
compensation, define their duties and give them ap-
propriate authority to carry out the purposes of this 
subtitle, and determine their qualification; and to es-
tablish the Association’s personnel policies and pro-
grams relating to, among other things, conflicts of 
interest, rates of compensation. and qualifications of 
personnel. 
‘‘(6) To borrow money. 
‘‘(7) To assess board member organizations and 
associations fees for such amounts that the Associa-
tion determines to be necessary and appropriate to 
organize and begin operations of the Association, 
which shall be treated as loans to be repaid by the 
Association with interest at market rate. 
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‘‘SEC. 328. REPORT BY ASSOCIATION. 
‘‘(a) IN GENERAL.—As soon as practicable after the 
close of each fiscal year, the Association shall submit to 
the President, the Congress, and the NAIC a written re-
port regarding the conduct of its business, and the exer-
cise of the other rights and powers granted by this sub-
title, during such fiscal year. 
‘‘(b) FINANCIAL STATEMENTS.—Each report sub-
mitted under subsection (a) with respect to any fiscal year 
shall include financial statements setting forth the finan-
cial position of the Association at the end of such fiscal 
year and the results of its operations (including the source 
and application of its funds) for such fiscal year. 
‘‘SEC. 329. LIABILITY OF THE ASSOCIATION AND THE DI-
RECTORS, OFFICERS, AND EMPLOYEES OF 
THE ASSOCIATION. 
‘‘(a) IN GENERAL.—The Association shall not be 
deemed to be an insurer or insurance producer within the 
meaning of any State law, rule, regulation, or order regu-
lating or taxing insurers, insurance producers, or other en-
tities engaged in the business of insurance, including pro-
visions imposing premium taxes, regulating insurer sol-
vency or financial condition, establishing guaranty funds 
and levying assessments, or requiring claims settlement 
practices. 
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‘‘(b) LIABILITY OF THE ASSOCIATION, ITS DIREC-
TORS, OFFICERS, AND EMPLOYEES.—Neither the Associa-
tion nor any of its directors, officers, or employees shall 
have any liability to any person for any action taken or 
omitted in good faith under or in connection with any mat-
ter subject to this subtitle. 
‘‘SEC. 330. PRESIDENTIAL REVIEW. 
‘‘(a) REMOVAL.—If the President determines and 
certifies to the Speaker of the House, the House Minority 
Leader, the Senate Majority Leader and the Senate Mi-
nority Leader that the Association is acting in a manner 
contrary to the purposes of this subtitle or has failed to 
perform its duties under this subtitle, the President may 
remove the entire existing Board for the remainder of the 
term to which the members of the Board were appointed 
and appoint, in accordance with section 324(c)(4) with the 
advice and consent of the Senate, new members to fill the 
vacancies on the Board for the remainder of such terms. 
‘‘(b) SUSPENSION
OF RULES
OR ACTIONS.—The 
President, or a person designated by the President for 
such purpose, may suspend the effectiveness of any rule, 
or prohibit any action, of the Association which the Presi-
dent or the designee determines and certifies to the Speak-
er of the House, the House minority leader, the Senate 
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majority leader, and the Senate minority leader is contrary 
to the purposes of this subtitle. 
‘‘SEC. 331. RELATIONSHIP TO STATE LAW. 
‘‘(a) PREEMPTION
OF STATE LAWS.—State laws, 
regulations, provisions, or other actions purporting to reg-
ulate insurance producers shall be preempted to the extent 
provided in subsection (b). 
‘‘(b) PROHIBITED ACTIONS.— 
‘‘(1) IN GENERAL.—No State shall— 
‘‘(A) impede the activities of, take any ac-
tion against, or apply any provision of law or 
regulation to, any insurance producer because 
that insurance producer or any affiliate plans to 
become, has applied to become, or is a member 
of the Association; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it pay fees different 
from those required to be paid to that State 
were it not a member of the Association; 
‘‘(C) impose any continuing education re-
quirements on nonresident insurance producers; 
or 
‘‘(D) impose any licensing, registration, or 
appointment requirements upon any non-
resident insurance producer that sells, solicits, 
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