114 
holding, or to prohibit the disclosure, of any information 
to Congress. 
SEC. 1151. FOREIGN INVESTIGATIONS. 
(a) REQUESTING ASSISTANCE FROM FOREIGN GOV-
ERNMENTS.—In conducting any investigation, examina-
tion, or enforcement action under this subtitle, the Com-
missioner may request the assistance of any foreign gov-
ernment. 
(b) PROVIDING ASSISTANCE TO FOREIGN GOVERN-
MENTS.— 
(1) IN GENERAL.—The Commissioner may as-
sist any foreign government that is conducting an 
investigation to determine whether any person has 
violated, is violating, or is about to violate any law 
or regulation relating to insurance matters or cur-
rency transactions administered or enforced by such 
foreign government. 
(2) INVESTIGATION
BY
COMMISSIONER.—The 
Commissioner may investigate and collect informa-
tion and evidence pertinent to a request for assist-
ance under paragraph (1). Any such investigation 
shall comply with the laws of the United States and 
the policies and procedures of the Commissioner. 
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115 
(3) FACTORS
TO
CONSIDER.—In deciding 
whether to provide assistance under this section, the 
Commissioner shall consider— 
(A) whether the requesting authority has 
agreed to provide reciprocal assistance with re-
spect to insurance matters within the jurisdic-
tion of the Commissioner; and 
(B) whether compliance with the request 
would prejudice the public interest of the 
United States. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the authority of the Com-
missioner or any other Federal agency to provide or re-
ceive assistance or information to or from any foreign gov-
ernmental authority with respect to any matter. 
SEC. 1152. ACTION OR PROCEEDING AGAINST NON-UNITED 
STATES INSURERS. 
(a) IN GENERAL.—The Commissioner may not take 
any action under this subtitle against a non-United States 
insurer or any officer, director, employee, or agent of such 
insurer unless the Commissioner believes that conduct or 
practice of such insurer or individual has been, is, or is 
likely to be, carried on in connection with an act or prac-
tice within 1 or more States, which constitutes an appro-
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116 
priate basis for action by the Commissioner under this 
subtitle. 
(b) REMOVAL OF OFFICER OR DIRECTOR.—If an of-
ficer, director, or other person associated with a non- 
United States insurer fails to appear promptly as a party 
in any case in which an action or proceeding is brought, 
pursuant to an allegation under subsection (a), for the 
suspension or removal of such officer, director, or other 
person, or fails to comply with any effective order or judg-
ment therein, any failure by the non-United States insurer 
to secure the removal of the officer, director, or other per-
son from any office such person holds in such insurer and 
from any further participation in its affairs shall con-
stitute grounds for ordering the non-United States insurer 
to terminate the sale, solicitation, negotiation, and under-
writing of insurance and all other insurance operations in 
the United States. 
(c) VENUE.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2), if the venue of any judicial or admin-
istrative proceeding under this section is to be deter-
mined by reference to the location of the main office 
of a national insurer, the venue of such a proceeding 
shall be within the judicial district or other relevant 
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117 
jurisdiction in which the non-United States insurer 
has 1 or more offices. 
(2) MULTIPLE JURISDICTIONS.—If a national 
insurer has offices in more than 1 jurisdiction, the 
venue of a proceeding under this section— 
(A) shall be in the jurisdiction within 
which the office or offices involved in the pro-
ceeding are located; and 
(B) if there is more than 1 jurisdiction 
under subparagraph (A), shall be proper in any 
such jurisdiction in which the proceeding is 
brought or to which it may appropriately be 
transferred. 
(d) SERVICE OF PROCESS.— 
(1) IN GENERAL.—Any service required or au-
thorized to be made on a non-United States insurer 
may be made on any office located within any State. 
(2) EXCEPTION.—If any service of process 
under paragraph (1) is in connection with an action 
or proceeding involving 1 or more offices located in 
any State, service shall be made on at least 1 office 
so involved. 
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118 
SEC. 1153. COOPERATION BETWEEN COMMISSIONER AND 
STATE COMMISSIONERS. 
(a) NOTICE TO STATE COMMISSIONERS.—The Com-
missioner shall notify the State commissioner in each 
State in which a national insurer or national agency is 
doing business not later than 30 days after the date of 
taking any of the following actions: 
(1) Revocation, suspension, or restriction of the 
authority of the national insurer or national agency 
to transact insurance. 
(2) The entry of a formal order that the na-
tional insurer restrict its premium writing, obtain 
additional contributions to surplus, reinsure all or 
any part of its business, or increase capital, surplus, 
or any other account for the security of policyholders 
or creditors. 
(3) The placement of a national insurer into re-
ceivership. 
Subtitle D—Insurance Fraud 
SEC. 1161. INVESTIGATION OF INSURANCE FRAUD. 
(a) 
INVESTIGATIVE
AUTHORITY
OF
COMMIS-
SIONER.—The Commissioner may investigate suspected 
fraudulent insurance acts by insurance persons engaged 
in the business of insurance or by other persons. 
(b) FRAUD WARNING REQUIRED.—The Commis-
sioner, by regulation, shall require each national insurer 
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119 
to place a fraud warning on claim forms and applications 
for policies of insurance written, or to be written, by a 
national insurer, regardless of the form of transmission. 
(c) MANDATORY REPORTING OF FRAUDULENT IN-
SURANCE ACTS.—A national insurer, or an insurance per-
son engaged in the business of insurance, that knows or 
reasonably believes that a fraudulent insurance act is 
being, will be, or has been committed, shall submit such 
information to the Commissioner in a form and manner 
prescribed by the Commissioner. 
(d) IMMUNITY FROM LIABILITY.— 
(1) IN GENERAL.—Except as provided under 
paragraphs (2) and (3), any person who furnishes, 
discloses, receives, or uses information concerning a 
suspected, anticipated, or completed fraudulent in-
surance act shall not be liable to any person under 
any law or regulation of the United States, any con-
stitution, law, or regulation of any State or political 
subdivision of any State, or under any contract or 
other legally enforceable agreement (including any 
arbitration agreement), for such act, if the informa-
tion is provided to or received from— 
(A) the Commissioner or any employee, 
agent, or representative of the Commissioner; 
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120 
(B) Federal, State, or local enforcement or 
regulatory officials or their employees, agents, 
or representatives; 
(C) a self-regulatory organization or its 
employees, agents, or representatives; 
(D) a person (including a National In-
surer, State Insurer, or anti-fraud organization) 
involved in the investigation (including coopera-
tion or participation in an investigation), pre-
vention, and detection of fraudulent insurance 
acts or that person’s agents, employees, or rep-
resentatives; or 
(E) the NAIC or its employees, agents, or 
representatives. 
(2) MALICE.— 
(A) IN GENERAL.—Paragraph (1) shall not 
apply to false statements made with actual mal-
ice. 
(B) CONTENTS OF COMPLAINT.—In an ac-
tion brought against a person for filing a report 
or furnishing other information concerning a 
fraudulent insurance act, the party bringing the 
action shall plead specifically any allegation 
that paragraph (1) does not apply because the 
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121 
person filed the report or furnished the infor-
mation with actual malice. 
(3) PRESERVATION OF PRIVILEGE AND IMMUNI-
TIES.—This subsection does not abrogate or modify 
any common law or statutory privileges or immuni-
ties enjoyed by a person described in paragraph (1). 
(e) CONFIDENTIALITY REGULATIONS.—The Commis-
sioner shall, by regulation, establish standards for the pro-
tection of confidential information submitted or obtained 
in an investigation of a suspected or actual fraudulent in-
surance act, the ability of the Commissioner to testify in 
private civil actions concerning any such confidential in-
formation and the sharing by the Commissioner of any 
such confidential information with other regulators, self- 
regulatory organizations, and other persons. 
SEC. 1162. PENALTIES. 
If a person committing an offense under subsection 
(a) or (c) of section 1033 of title 18, United States Code, 
is a national insurer, a national agency, or other federally 
licensed insurance producer, or an insurer-affiliated party, 
the Commissioner may, in addition to the punishment set 
forth in section 1034 of title 18, United States Code— 
(1) revoke, suspend, or restrict the Federal li-
cense of such national insurer, national agency, or 
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122 
other federally licensed insurance producer, or in-
surer-affiliated party pursuant to subtitle C; and 
(2) order such national insurer, national agen-
cy, or other federally licensed insurance producer, or 
insurer-affiliated party to make restitution to per-
sons aggrieved by such offenses. 
SEC. 1163. CIVIL REMEDY. 
(a) RECOVERY AUTHORIZED.—Any national insurer, 
national agency, or federally licensed insurance producer 
that is injured by reason of a fraudulent insurance act 
may recover from the person committing the act— 
(1) return of any profit, benefit, compensation, 
or payment received by the person committing the 
act; 
(2) reasonable attorney fees, related legal ex-
penses, including internal legal expenses and court 
costs; and 
(3) all other economic damages directly result-
ing from the act. 
(b) LIMITATIONS.—No action under this section— 
(1) may be certified as a class action or made 
part of a class action; and 
(2) may be maintained under this section if a 
court has ordered restitution to the injured national 
insurer, national agency, or federally licensed insur-
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123 
ance producer upon criminal conviction of the person 
committing the fraudulent insurance act. 
(c) SOLE PRIVATE REMEDY.—The remedy provided 
under this section shall be the only private remedy for 
commission of a fraudulent insurance act, and no addi-
tional remedies shall be implied, nor shall the remedy pro-
vided under this section be used in conjunction with or 
in addition to any other remedies available at law or in 
equity to duplicate recovery for the same element of eco-
nomic damage. 
TITLE II—NATIONAL INSURANCE 
COMPANIES AND NATIONAL 
INSURANCE AGENCIES 
Subtitle A—Organization, 
Licensing, and Operations 
SEC. 1201. ORGANIZATION, OPERATION, AND REGULATION 
OF NATIONAL INSURANCE COMPANIES AND 
NATIONAL INSURANCE AGENCIES. 
(a) AUTHORIZATION.— 
(1) IN GENERAL.—The Commissioner may, in 
accordance with the provisions of this Act, and 
under regulations prescribed by the Commissioner 
pursuant to paragraph (2)— 
(A) provide for the organization, incorpora-
tion, operation, and regulation of national in-
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124 
surance companies and national insurance 
agencies; and 
(B) issue charters therefor. 
(2) RULEMAKING.—The Commissioner shall 
issue regulations that permit the organization of na-
tional insurers in stock, mutual, reciprocal, or fra-
ternal form, and address such other matters related 
to the chartering and licensing of national insurers 
and national agencies, as the Commissioner deter-
mines appropriate. 
(3) ORGANIZATION.—The Commissioner shall 
require each national agency to be organized as a 
corporation, partnership, limited liability company, 
or in such other form as is recognized under State 
law. 
(b) CHARTERING CRITERIA.— 
(1) FACTORS.—In determining whether to issue 
a charter for a national insurer or national agency, 
the Commissioner shall consider— 
(A) the character and competency of the 
parties seeking the charter; and 
(B) the financial resources and future 
prospects of the proposed national insurer or 
proposed national agency. 
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125 
(2) INFORMATION.—The Commissioner shall re-
quest such information from the applicant as the 
Commissioner determines necessary to make the 
evaluation required under paragraph (1). 
(3) CORPORATE NAME.— 
(A) NATIONAL INSURERS.—The corporate 
name of each national insurer shall include at 
the end the words ‘‘national insurer’’ or the ini-
tials ‘‘N.I.’’. 
(B) NATIONAL AGENCIES.—The corporate 
name of each national agency shall include at 
the end the words ‘‘National Insurance Agency’’ 
or the initials ‘‘N.I.A.’’. 
(C) SAVINGS PROVISION.—Nothing in this 
Act shall preclude a State insurer or State in-
surance agency from using the word ‘‘national’’ 
or ‘‘Federal’’ in its corporate name if such word 
was included in the corporate name of the State 
insurer or agency on or before the date of en-
actment of this Act. 
(c) ISSUANCE OR DENIAL OF CHARTER.— 
(1) DETERMINATION.—Not later than 60 days 
after the receipt of the articles of incorporation or 
other organization document from a proposed na-
tional insurer or national agency, and such other in-
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126 
formation required under subsection (b)(2), the 
Commissioner shall— 
(A) issue a charter certificate to the appli-
cant; or 
(B) provide the applicant with a written 
explanation of the grounds for denying a char-
ter. 
(2) FEDERAL
PRODUCER
LICENSE.—If the 
Commissioner issues a charter certificate to a na-
tional agency, the Commissioner shall concurrently 
issue a Federal producer license to the applicant 
pursuant to section 1301. A national agency may 
not sell, solicit, or negotiate any line of insurance for 
which it does not hold a Federal producer license. 
(3) GROUNDS FOR DENIAL.—The Commissioner 
shall not grant a charter to an applicant if— 
(A) the applicant fails to— 
(i) comply with all applicable forma-
tion requirements; and 
(ii) provide any information requested 
by the Commissioner under subsection 
(b)(2); 
(B) the applicant lacks— 
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127 
(i) the financial resources necessary to 
comply with the standards under this Act; 
or 
(ii) the character or competence to op-
erate the national insurer or national agen-
cy in accordance with the standards under 
this Act; or 
(C) the Commissioner determines that the 
national insurer or national agency is being 
formed for an illegitimate purpose. 
(d) AMENDMENT OF CHARTER.—The Commissioner 
may, under such regulations as the Commissioner may 
prescribe, provide for the amendment of charters issued 
to national insurers and national agencies. 
(e) NO DELEGATION PERMITTED.—The Commis-
sioner may not delegate to any insurance self-regulatory 
organization any authority conferred under this section 
with respect to— 
(1) the organization, incorporation, and powers 
of national insurers or national agencies; or 
(2) the issuance and amendment of charters to 
a national insurer or national agency. 
(f) MAIN OFFICE.— 
(1) DESIGNATION.—Subject to the approval of 
the Commissioner, a national insurer or national 
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128 
agency may designate any office at which it conducts 
insurance operations as its main office. 
(2) CHARTER TO SPECIFY MAIN OFFICE.—The 
charter of a national insurer or national agency shall 
specify the State in which its main office is located. 
(3) CHANGE IN MAIN OFFICE.—With the ap-
proval of the Commissioner, a national insurer or 
national agency may change the designation of its 
main office, including to another existing office of 
the national insurer or national agency. 
(4) CITIZENSHIP.—For purposes of jurisdiction, 
a national insurer or national agency shall be 
deemed a citizen of the State in which its main of-
fice is located and of the State in which it has its 
principal place of business. 
(g) INSURER IN FRATERNAL FORM.—Any charter 
granted to a national insurer in fraternal form in connec-
tion with a conversion from a State insurer shall include 
provisions that allow the national insurer to operate as 
an insurer in fraternal form in a manner consistent with 
the requirements of its former State charter. 
SEC. 1202. UNITED STATES BRANCHES OF NON-UNITED 
STATES INSURERS. 
(a) AUTHORIZATION OF NON-UNITED STATES IN-
SURER.—A non-United States insurer may transact insur-
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129 
ance in the United States through a United States branch 
by qualifying and licensing the United States branch to 
do business as a national insurer under this Act, under 
such regulations as the Commissioner may prescribe. 
(b) TRUST ACCOUNT.— 
(1) IN GENERAL.—The Commissioner shall not 
license a United States branch until the non-United 
States insurer establishes a trust account, pursuant 
to a deed of trust that meets the requirements of 
this subsection. 
(2) ASSETS.—The trusteed assets of a United 
States branch shall be held pursuant to a deed of 
trust with a United States bank that meets such re-
quirements as the Commissioner may prescribe, in 
trust for the exclusive benefit, security, and protec-
tion of the policyholders, or policyholders and credi-
tors, of the United States branch in the United 
States maintained as long as there is outstanding 
any liability of the United States branch arising out 
of its insurance transactions in the United States. 
(3) SURPLUS.—The trusteed surplus of a 
United States branch shall be subject to the same 
solvency standards required of national insurers, in-
cluding the risk-based capital standards described in 
section 1212(a)(4). 
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130 
(4) FILING.—The Commissioner may require a 
United States branch to file a statement, in such 
form as the Commissioner may prescribe, that has 
been certified by the trustee. 
(c) SUBJECT TO APPLICABLE LAWS.—Except as oth-
erwise provided under this section, a United States branch 
established under this section— 
(1) shall be subject to all laws applicable to a 
national insurer; and 
(2) shall be treated as a national insurer for all 
purposes of this Act. 
SEC. 1203. FEDERAL LICENSING OF NATIONAL INSURERS. 
(a) IN GENERAL.—A national insurer may not sell, 
solicit, negotiate, or underwrite any line of insurance for 
which it does not hold a Federal license. 
(b) ISSUANCE OF FEDERAL LICENSES.— 
(1) IN
GENERAL.—The Commissioner shall, 
under such regulations as the Commissioner shall 
prescribe, issue Federal licenses that— 
(A) permit national insurers to sell, solicit, 
negotiate, and underwrite lines of insurance; 
and 
(B) specify the lines of insurance that each 
national insurer may sell, solicit, negotiate, and 
underwrite. 
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131 
(2) RULEMAKING.—The regulations prescribed 
by the Commissioner pursuant to paragraph (1) 
shall provide that— 
(A) a national insurer may hold a license 
to sell, solicit, negotiate, and underwrite prop-
erty/casualty insurance; 
(B) a national insurer that holds a license 
to sell, solicit, negotiate, and underwrite life in-
surance may also sell, solicit, negotiate, and un-
derwrite disability income insurance, long-term 
care insurance, annuities, and funding agree-
ments; and 
(C) no national insurer may obtain— 
(i) a Federal license to engage in the 
sale, solicitation, negotiation, and under-
writing of property/casualty insurance; and 
(ii) a Federal license to engage in the 
sale, solicitation, negotiation, and under-
writing of life insurance, annuities, or 
funding agreements. 
(3) AUTHORITY
TO
LIMIT
SCOPE
OF
INSUR-
ANCE.—Subject to paragraph (2), the regulations 
prescribed by the Commissioner pursuant to para-
graph (1) may provide that a national insurer that 
holds a license to sell, solicit, negotiate, and under-
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132 
write specified lines of insurance may not hold a li-
cense to sell, solicit, negotiate, and underwrite other 
specified lines of insurance. 
(4) TITLE
INSURANCE.—The Commissioner 
shall not license any person to engage in the busi-
ness of title insurance, except that nothing in this 
Act shall prevent a provider of title insurance from 
being affiliated with a national insurer or national 
agency. 
(5) DURATION.—A Federal license issued by 
the Commissioner pursuant to this subsection shall 
remain in effect until the license is— 
(A) surrendered by the national insurer; or 
(B) revoked or suspended by the Commis-
sioner in accordance with the provisions of this 
Act. 
(c) REINSURANCE.—A national insurer may— 
(1) only reinsure the lines of insurance that the 
national insurer is— 
(A) licensed to sell, solicit, negotiate, and 
underwrite under its Federal license; or 
(B) otherwise permitted to reinsure by the 
terms of its Federal license; and 
(2) confine its business to reinsurance. 
(d) NONDISCRIMINATION.— 
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133 
(1) IN GENERAL.—Except as provided in para-
graph (2) and section 1202, the Commissioner may 
not impose any condition for the granting of a Fed-
eral license to a national insurer under this section 
solely because the national insurer is— 
(A) a subsidiary of a non-United States 
person; 
(B) partially owned by a non-United States 
person; or 
(C) a United States branch of a non- 
United States insurer. 
(2) EXCEPTION.—Notwithstanding paragraph 
(1), the Commissioner may impose conditions for the 
granting of a Federal license that are different from 
those imposed on other national insurers— 
(A) if the conditions attached are imposed 
on the legal form in which the national insurer 
chooses to operate; or 
(B) if the Commissioner makes a written 
finding that the conditions are related to the 
protection of policyholders and are the min-
imum conditions necessary to achieve the pur-
poses of this Act. 
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134 
SEC. 1204. CORPORATE GOVERNANCE. 
(a) COMPLIANCE WITH THIS ACT AND APPLICABLE 
REGULATIONS.—The corporate governance procedures of 
a national insurer and a national agency shall be con-
sistent with the provisions of this Act and all regulations 
issued by the Commissioner under this Act. 
(b) ADHERENCE TO STATE LAW.— 
(1) IN GENERAL.—Except as provided under 
paragraph (3), and to the extent not inconsistent 
with the provisions of this Act or regulations issued 
by the Commissioner under this Act, each national 
insurer and national agency shall adhere to cor-
porate governance procedures of the relevant State 
law of the State in which its main office is located 
or the State in which 1 of its United States holding 
companies is organized or incorporated. 
(2) DESIGNATION.—Each national insurer and 
national agency shall designate in its bylaws the 
body of relevant State law selected for its corporate 
governance procedures. 
(3) DISCRIMINATORY PROVISION.—If the Com-
missioner determines that any provision of a State 
corporate governance law is discriminatory as ap-
plied to national insurers or national agencies, such 
insurer or agency— 
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135 
(A) shall not be obligated to follow such a 
provision of the relevant State law; and 
(B) may follow such other provision of law 
as the Commissioner determines to be appro-
priate. 
(c) INDEPENDENT AUDIT COMMITTEE
FOR NA-
TIONAL INSURERS.— 
(1) ESTABLISHMENT.—Each national insurer 
shall establish an audit committee of its board of di-
rectors, which shall be composed entirely of outside 
directors who are independent of management of the 
national insurer. 
(2) SATISFACTION.—The requirement described 
in paragraph (1) will be satisfied if— 
(A) any person that controls the national 
insurer has established an audit committee of 
its board of directors entirely composed of out-
side directors who are independent of manage-
ment of such controlling person; and 
(B) the role of the audit committee of the 
controlling person in subparagraph (A) includes 
review of financial statements of the national 
insurer. 
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136 
SEC. 1205. PARTICIPATING POLICY PROCEDURES. 
(a) CHOICE OF PROCEDURES.—A national life in-
surer in mutual form shall, at the time of its initial char-
tering and licensing under sections 1201 and 1203, or its 
conversion under section 1206, elect to either— 
(1) adhere to participating policy procedures of 
the relevant law of the State in which its main office 
is located; or 
(2) adhere to the participating policy proce-
dures established by regulation of the Commissioner 
under subsection (b). 
(b) REGULATIONS.—The Commissioner shall, by reg-
ulation, establish participating policy procedures, as the 
Commissioner determines to be appropriate to carry out 
this Act. 
(c) EXCEPTION.—No national life insurer in mutual 
form shall be subject to any limitation on the amount of 
surplus that it may retain. 
SEC. 1206. CONVERSION OF STATE INSURER TO NATIONAL 
INSURER OR STATE INSURANCE AGENCY TO 
NATIONAL AGENCY. 
(a) AUTHORIZATION TO CONVERT.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of law and subject to the approval of the 
Commissioner, a State insurer may convert to a na-
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137 
tional insurer and a State insurance agency may 
convert to a national agency. 
(2) ORGANIZATIONAL FORM.—A State insurer 
that converts to a national insurer under paragraph 
(1) may— 
(A) retain an organizational form per-
mitted under section 1201(a)(2); or 
(B) change directly to another organiza-
tional form that is permitted under section 
1201(a)(2). 
(b) CONVERSION PROCEDURES.— 
(1) IN
GENERAL.—The Commissioner may, 
under such regulations as the Commissioner may 
prescribe, provide for— 
(A) the conversion of State insurers into 
national insurers; 
(B) the conversion of State insurance 
agencies to national agencies; and 
(C) the issuance of charters to such con-
verted insurers and agencies. 
(2) RULEMAKING.—Regulations issued by the 
Commissioner under this section shall be consistent 
with— 
(A) the regulations issued by the Commis-
sioner under section 1201; and 
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138 
(B) the provisions of section 1242 or 1243, 
as applicable, in the case of a change of form 
effected at the time of a conversion of a State 
insurer into a national insurer. 
(c) EFFECT OF CONVERSION.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2), a State insurer or State insurance 
agency that converts under this section— 
(A) shall be subject to the provisions of 
this Act and to examination and regulation as 
provided under this Act to the same extent as 
other national insurers and national agencies 
organized under this Act; 
(B) shall be deemed to be a continuation 
of the corporate existence of the State insurer 
or State insurance agency, as applicable; and 
(C) shall, by operation of law and without 
further action, hold and be subject to all rights, 
privileges, liabilities, property interests, and 
other interests and obligations that the State 
insurer or State insurance agency held, or was 
subject to, immediately before the conversion. 
(2) EXCEPTIONS.—Notwithstanding paragraph 
(1), a State insurer or State insurance agency that 
converts under this section— 
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139 
(A) shall not be subject to any requirement 
to maintain deposits with State insurance regu-
latory authorities; 
(B) shall not hold any State license to sell, 
solicit, negotiate, and underwrite insurance that 
was held by the State insurer or State insur-
ance agency; and 
(C) shall obtain, in accordance with section 
1203 or 1301, as applicable, a Federal license 
for all lines of insurance that it sells, solicits, 
negotiates, or underwrites. 
(d) SPECIAL AUTHORITY.—The Commissioner may, 
subject to such conditions as the Commissioner may pre-
scribe by regulation, permit a national insurer or national 
agency resulting from the conversion of a State insurer 
or State insurance agency, as applicable, to retain, hold, 
or exercise assets, liabilities, powers, and authorities that 
do not conform to the legal requirements otherwise appli-
cable to national insurers or national agencies to the ex-
tent the Commissioner determines is appropriate. 
(e) MUTUAL
HOLDING
COMPANY
CONTROLLING 
STATE INSURERS IN STOCK FORM.— 
(1) IN GENERAL.—If a State insurer converting 
under this section is an insurer in stock form that 
is controlled by a mutual holding company as a re-
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