U.S.C. 78s(b)(1)) for broker-dealer supervision of reg-
istered representatives. 
(d) EXEMPTION.—The Commissioner may, by regula-
tion, exempt any class of persons from the duties under 
subsections (a) and (b), if the Commissioner determines 
that, given the nature of the business relationship with 
the national insurance producer, it would be unreasonable 
or inappropriate to require the class member to supervise 
such producer. 
(e) NO DUTY.—A national insurer or national insur-
ance agency is not required to supervise the sales and mar-
keting practices of persons other than those referred to 
in subsections (a) or (b). 
(f) OVERSIGHT OF INDEPENDENT NATIONAL INSUR-
ANCE PRODUCERS.— 
(1) IN
GENERAL.—The Commissioner shall 
oversee the sales and marketing practices of a na-
tional insurance producer with respect to the sale, 
solicitation, or negotiation of insurance policies if 
such producer is not a person subject to supervision 
under subsection (a) or (b). 
(2) STANDARDS AND PROCEDURES.—The Com-
missioner shall, by regulation, establish standards 
and procedures for the oversight of the sales and 
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marketing practices of national insurance producers 
described in paragraph (1). 
SEC. 405. RELATIONSHIP TO STATE LAW. 
(a) NO STATE RESTRICTIONS.—No State may pre-
vent or restrict a national insurer or national insurance 
agency from engaging in the acts described in subsection 
(b) or from engaging the services of a person who engages 
in such acts for the national insurer or national insurance 
agency, nor shall any State require that a person be li-
censed by reason of engaging in such acts for a national 
insurer or national insurance agency. 
(b) ACTS
PROTECTED
FROM
STATE
RESTRIC-
TIONS.—The acts referred to in subsection (a) are the fol-
lowing: 
(1) Investigating, evaluating, ascertaining, or 
determining the amount of or negotiating, settling, 
or adjusting or otherwise participating in the dis-
posal of claims, losses, or damages arising under in-
surance policies written by a national insurer. 
(2) Soliciting, negotiating, or placing reinsur-
ance cessions or retrocessions on behalf of a ceding 
national insurer without the authority or power to 
bind reinsurance on behalf of such national insurer. 
(3) Binding or managing all or part of the as-
sumed reinsurance business of a national insurer 
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that is a reinsurer (including the management of a 
separate division, department, or underwriting of-
fice) and acting as an agent for such reinsurer. 
(4) Directly or indirectly underwriting, col-
lecting charges or premiums, or adjusting or settling 
claim, in connection with policies of insurance writ-
ten by a national insurer. 
(c) ACTIVITIES
OF NATIONAL INSURANCE PRO-
DUCERS.—No State may— 
(1) prevent or restrict a national insurance pro-
ducer from engaging in any activity authorized by 
this title; or 
(2) require such producer to be licensed by rea-
son of engaging in such activity on behalf of a na-
tional insurer, national insurance agency, State in-
surer, or a United States branch of a non-United 
States insurer. 
(d) 
ACTIVITIES
OF
STATE
INSURANCE
PRO-
DUCERS.—No State may prevent or restrict an insurance 
producer licensed by such State from selling, soliciting, or 
negotiating insurance in such State on behalf of a national 
insurer or being employed by a national insurance agency. 
(e) INTERNATIONAL AGREEMENTS.—To the extent 
that a non-United States insurer is eligible to conduct a 
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cross-border business pursuant to an international agree-
ment, no State may— 
(1) prevent or restrict such non-United States 
insurer from engaging in the activities authorized 
under such agreement; or 
(2) prevent or restrict a national insurance 
agency or national insurance producer from engag-
ing in any activity authorized by this Act on behalf 
of such non-United States insurer or require the 
agency or producer to be licensed by reason of en-
gaging in such activity for such non-United States 
insurer. 
SEC. 406. LICENSING COMMENCEMENT DATE. 
The Commissioner shall not license a national insur-
ance producer until the Commissioner notifies Congress 
that the Office is operational and that all regulations nec-
essary to govern the licensing, operations, and supervision 
of such producer have been issued in final or interim final 
form. The Commissioner shall provide a notification to 
Congress not later than 2 years after the date of the en-
actment of this Act. 
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100 
TITLE V—CHANGE IN CONTROL 
AND 
INSURANCE 
HOLDING 
COMPANIES 
SEC. 501. CHANGE IN CONTROL. 
(a) IN GENERAL.— 
(1) LIMITATION.—A person shall not, directly 
or indirectly or through or in concert with one or 
more other persons, acquire control of a national in-
surer until— 
(A) such person has submitted a written 
notice as described in subsection (f) to the 
Commissioner of the intention of such person to 
acquire control of such national insurer; and 
(B) the expiration of the disapproval pe-
riod and all extensions of such period referred 
to in paragraph (2). 
(2) DISAPPROVAL PERIOD.— 
(A) IN GENERAL.—The Commissioner may 
disapprove the acquisition of effective control of 
a national insurer by issuing notice to the per-
son wishing to acquire such effective control 
within 60 days of receiving a notice referred to 
in paragraph (1)(A). 
(B) EXTENSION
AUTHORIZED.—The pe-
riod for disapproval under subparagraph (A) 
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101 
may be extended not more than twice for a pe-
riod of not more than 45 days each time, if— 
(i) the Commissioner determines that 
an acquiring person has not furnished all 
the information required under this sec-
tion; 
(ii) in the judgment of the Commis-
sioner, any material information submitted 
is substantially inaccurate; 
(iii) the Commissioner has been un-
able to complete the investigation of an ac-
quiring person required under this section 
because of any delay caused by, or the in-
adequate cooperation of, such acquiring 
person; or 
(iv) the Commissioner determines that 
additional time is needed— 
(I) to investigate and determine 
that no acquiring person has a record 
of failing to comply with the require-
ments of subchapter II of chapter 53 
of title 31, United States Code; or 
(II) to analyze the safety and 
soundness of any plans or proposals 
described in subsection (f)(6) or the 
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