I 
112TH CONGRESS 
1ST SESSION H. R. 1112 
To reform the National Association of Registered Agents and Brokers, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 16, 2011 
Mr. NEUGEBAUER (for himself, Mr. DAVID SCOTT of Georgia, Mr. BACHUS, 
Mrs. BIGGERT, Mrs. CAPITO, Mr. GARRETT, Mr. DAVIS of Kentucky, Mr. 
AKIN, Mrs. BACHMANN, Mr. BOREN, Mr. BOSWELL, Mr. BRALEY of 
Iowa, Mr. CANSECO, Mr. CAPUANO, Mr. CARSON of Indiana, Mr. CHAN-
DLER, Mr. CLAY, Mr. DOLD, Mr. DONNELLY of Indiana, Ms. FOXX, Mr. 
GERLACH, Mr. AL GREEN of Texas, Ms. HAYWORTH, Mr. HOLDEN, Mr. 
HUIZENGA of Michigan, Mr. JONES, Mr. KINZINGER of Illinois, Mr. 
LANCE, Mr. LARSON of Connecticut, Mr. LOEBSACK, Mr. LUETKEMEYER, 
Mrs. MALONEY, Mr. MANZULLO, Mr. MARCHANT, Mr. MCHENRY, Mr. 
MILLER of North Carolina, Ms. MOORE, Mr. MURPHY of Connecticut, 
Mrs. MYRICK, Mr. PERLMUTTER, Mr. POSEY, Mr. RENACCI, Mr. ROSS 
of Arkansas, Mr. SCHRADER, Mr. STIVERS, Mr. TERRY, Mr. WALSH of 
Illinois, and Ms. WASSERMAN SCHULTZ) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To reform the National Association of Registered Agents 
and Brokers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Association 
of Registered Agents and Brokers Reform Act of 2011’’. 
SEC. 2. REESTABLISHMENT OF THE NATIONAL ASSOCIA-
TION OF REGISTERED AGENTS AND BRO-
KERS. 
(a) IN GENERAL.—Subtitle C of title III of the 
Gramm-Leach-Bliley Act (15 U.S.C. 6751 et seq.) is 
amended to read as follows: 
‘‘Subtitle C—National Association 
of Registered Agents and Brokers 
‘‘SEC. 
321. 
NATIONAL 
ASSOCIATION 
OF 
REGISTERED 
AGENTS AND BROKERS. 
‘‘(a) ESTABLISHMENT.—There is established the Na-
tional Association of Registered Agents and Brokers 
(hereafter in this subtitle referred to as the ‘Association’). 
‘‘(b) STATUS.—The Association shall— 
‘‘(1) be a nonprofit corporation; 
‘‘(2) have succession until dissolved by an Act 
of Congress; 
‘‘(3) not be an agent or instrumentality of the 
United States Government; and 
‘‘(4) except as otherwise provided in this sub-
title, be subject to, and have all the powers conferred 
upon a nonprofit corporation by the District of Co-
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lumbia Nonprofit Corporation Act (D.C. Code, sec. 
29–301.01 et seq.). 
‘‘SEC. 322. PURPOSE. 
‘‘The purpose of the Association shall be to provide 
a mechanism through which licensing, continuing edu-
cation, and other nonresident insurance producer quali-
fication requirements and conditions can be adopted and 
applied on a multi-state basis (without affecting the laws, 
rules, and regulations pertaining to resident insurance 
producers or appointments or producing a net loss of pro-
ducer licensing revenues to States), while preserving the 
right of States to license, supervise, discipline, and estab-
lish licensing fees for insurance producers, and to pre-
scribe and enforce laws and regulations with regard to in-
surance-related consumer protection and unfair trade 
practices. 
‘‘SEC. 323. MEMBERSHIP. 
‘‘(a) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—Any insurance producer li-
censed in its home State shall, subject to paragraphs 
(2) and (4), be eligible to become a member of the 
Association. 
‘‘(2) INELIGIBILITY FOR SUSPENSION OR REV-
OCATION OF LICENSE.—Subject to paragraph (3), 
an insurance producer is not eligible to become a 
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member of the Association if a State insurance regu-
lator has suspended or revoked such producer’s li-
cense in that State during the 3-year period pre-
ceding the date on which such producer applies for 
membership. 
‘‘(3) RESUMPTION OF ELIGIBILITY.—Paragraph 
(2) shall cease to apply to any insurance producer 
if— 
‘‘(A) the State insurance regulator reissues 
or renews the license of such producer in the 
State in which the license was suspended or re-
voked; or 
‘‘(B) the suspension or revocation is subse-
quently overturned. 
‘‘(4) CRIMINAL BACKGROUND RECORD CHECK 
REQUIRED.— 
‘‘(A) IN
GENERAL.—An insurance pro-
ducer shall not be eligible to become a member 
of the Association unless the producer has un-
dergone a national criminal background record 
check that complies with regulations prescribed 
by the Attorney General under subparagraph 
(L). 
‘‘(B) CRIMINAL
BACKGROUND
RECORD 
CHECK REQUESTED BY HOME STATE.—An in-
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surance producer who is licensed in a State and 
who has undergone a national criminal back-
ground record check in compliance with such 
requirements as a condition for such licensure 
shall be deemed to have undergone a national 
criminal background record check for purposes 
of subparagraph (A). 
‘‘(C) CRIMINAL
BACKGROUND
RECORD 
CHECK REQUESTED BY ASSOCIATION.— 
‘‘(i) IN
GENERAL.—The Association 
shall, upon request by an insurance pro-
ducer licensed in a State, submit identi-
fication information obtained from such 
producer, and a request for a national 
criminal background record check of such 
producer, to the Federal Bureau of Inves-
tigation. 
‘‘(ii) BYLAWS OR RULES.—The board 
of directors of the Association shall pre-
scribe bylaws or rules for obtaining and 
utilizing identification information and 
criminal history record information, includ-
ing the establishment of reasonable fees re-
quired to perform a criminal background 
record check and appropriate safeguards 
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for maintaining confidentiality and security 
of the information. 
‘‘(D) FORM OF REQUEST.—A submission 
under subparagraph (C)(i) shall include such 
identification information as required by the At-
torney General concerning the person about 
whom the record is requested and a statement 
signed by the person authorizing the Associa-
tion to obtain the information. 
‘‘(E) PROVISION OF INFORMATION BY AT-
TORNEY GENERAL.—Upon receiving a submis-
sion under subparagraph (C)(ii) from the Asso-
ciation, the Attorney General shall search all 
records of the Criminal Justice Information 
Services Division of the Federal Bureau of In-
vestigation that the Attorney General deems ap-
propriate for criminal history records cor-
responding to the identification information 
provided under subparagraph (D) and provide 
all information contained in such records that 
pertains to the request to the Association. 
‘‘(F) LIMITATION ON PERMISSIBLE USES 
OF
INFORMATION.—The Association may use 
information provided under subparagraph (E) 
only— 
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‘‘(i) for purposes of determining com-
pliance with membership criteria estab-
lished by the Association; and/or 
‘‘(ii) to disclose to State insurance 
regulators, or Federal or State law en-
forcement agencies, in conformance with 
applicable law. 
‘‘(G) APPLICANT
ACCESS
TO
CRIMINAL 
HISTORY RECORDS.—Notwithstanding subpara-
graph (F), a producer shall have the right to 
obtain from the Association a copy of any 
criminal history record information concerning 
the producer that is provided to the Association 
under subparagraph (E). 
‘‘(H) PENALTY
FOR
IMPROPER
USE
OR 
DISCLOSURE.—Whoever knowingly uses any in-
formation provided under subparagraph (E) for 
a purpose not authorized in subparagraph (F), 
or discloses any such information to anyone not 
authorized to receive it, shall be fined under 
title 18, United States Code, imprisoned for not 
more than 2 years, or both. 
‘‘(I) RELIANCE
ON
INFORMATION.—Nei-
ther the Association nor any of its directors, of-
ficers, or employees shall be liable in any action 
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for using information provided under subpara-
graph (E) as permitted under subparagraph 
(F) in good faith and in reasonable reliance on 
its accuracy. 
‘‘(J) FEES.—The Attorney General may 
charge a reasonable fee to defray the expense of 
conducting the search and providing the infor-
mation under subparagraph (E), and any such 
fee shall be collected and remitted by the Asso-
ciation. 
‘‘(K) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed as— 
‘‘(i) requiring a State insurance regu-
lator to perform criminal background 
checks under this section; or 
‘‘(ii) limiting any other authority that 
allows access to criminal background 
records. 
‘‘(L) REGULATIONS.—The Attorney Gen-
eral shall prescribe regulations to carry out this 
paragraph, which shall include— 
‘‘(i) appropriate protections for ensur-
ing the confidentiality of information pro-
vided under subparagraph (E); and 
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‘‘(ii) procedures providing a reason-
able opportunity for a producer to contest 
the accuracy of information regarding the 
producer provided under subparagraph 
(E). 
‘‘(M) INELIGIBILITY FOR MEMBERSHIP.— 
‘‘(i) IN
GENERAL.—The Association 
may, under reasonably consistently applied 
standards, deny membership to an insur-
ance producer on the basis of criminal his-
tory information provided under subpara-
graph (E). 
‘‘(ii) RIGHTS OF APPLICANTS DENIED 
MEMBERSHIP.—The Association shall no-
tify any producer who is denied member-
ship on the basis of criminal history record 
information provided under subparagraph 
(E) of the right of the producer to— 
‘‘(I) obtain a copy of all criminal 
history record information provided to 
the Association under subparagraph 
(E) with respect to the producer; and 
‘‘(II) challenge the accuracy and 
completeness of the information. 
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‘‘(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. 
‘‘(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. 
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