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‘‘(7) To secure funding from board member or-
ganizations and other industry associations for such 
amounts that the Association determines to be nec-
essary and appropriate to organize and begin oper-
ations of the Association, which shall be treated as 
loans to be repaid by the Association with interest 
at market rate. 
‘‘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 and the NAIC a written report regarding 
the conduct of its business, and the exercise of the other 
rights and powers granted by this subtitle, 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 
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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. 
‘‘(b) LIABILITY OF DIRECTORS, OFFICERS, AND EM-
PLOYEES.—No director, officer, or employee of the Asso-
ciation shall be personally liable to any person for any ac-
tion taken or omitted in good faith in any matter within 
the scope of their responsibilities in connection with the 
Association. 
‘‘SEC. 330. PRESIDENTIAL OVERSIGHT. 
‘‘(a) REMOVAL OF BOARD.—If the President deter-
mines that the Association is acting in a manner contrary 
to the interests of the public or the purposes of this sub-
title 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 and with the advice and consent of the Senate, 
new members to fill the vacancies on the Board for the 
remainder of such terms. 
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‘‘(b) REMOVAL OF BOARD MEMBER.—The President 
may remove a member of the Board only for neglect of 
duty or malfeasance in office. 
‘‘(c) 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 is contrary to the pur-
poses 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 arbitrarily or discriminatorily to, any 
insurance producer because that insurance pro-
ducer or any affiliate plans to become, has ap-
plied to become, or is a member of the Associa-
tion; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it pay fees different 
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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, 
negotiates, effects, procures, delivers, renews, 
continues, or binds insurance for commercial 
property and casualty risks to an insured with 
risks located in more than 1 State, if such non-
resident insurance producer is otherwise li-
censed as an insurance producer in the State 
where the insured maintains its principal place 
of business and the contract of insurance in-
sures risks located in that State. 
‘‘(2) STATES OTHER THAN A HOME STATE.— 
No State, other than a member’s home State, 
shall— 
‘‘(A) impose any licensing, integrity, per-
sonal or corporate qualifications, education, 
training, experience, residency, continuing edu-
cation, or bonding requirement upon a member 
of the Association that is different from the cri-
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teria for membership in the Association or re-
newal of such membership; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it be licensed, reg-
istered, or otherwise qualified to do business or 
remain in good standing in such State, includ-
ing any requirement that such insurance pro-
ducer register as a foreign company with the 
secretary of state or equivalent State official; or 
‘‘(C) require that a member of the Associa-
tion submit to a criminal history record check 
as a condition of doing business in such State. 
‘‘SEC. 332. COORDINATION WITH OTHER REGULATORS. 
‘‘(a) COORDINATION WITH STATE INSURANCE REGU-
LATORS.—The Association may— 
‘‘(1) establish a central clearinghouse, or utilize 
the NAIC or any other appropriate entity as a cen-
tral clearinghouse, through which members of the 
Association may pursuant to section 323(e) disclose 
their intent to operate in 1 or more States and pay 
the licensing fees to the appropriate States; and 
‘‘(2) establish a national database for the collec-
tion of regulatory information concerning the activi-
ties of insurance producers or contract with the 
NAIC or any other entity to utilize such a database. 
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‘‘(b) COORDINATION WITH THE FINANCIAL INDUS-
TRY REGULATORY AUTHORITY.—The Association shall 
coordinate with the Financial Industry Regulatory Au-
thority in order to ease any administrative burdens that 
fall on persons that are members of both associations, con-
sistent with the requirements of this subtitle and the Fed-
eral securities laws. 
‘‘SEC. 333. RIGHT OF ACTION. 
‘‘(a) RIGHT OF ACTION.—Any person aggrieved by 
a decision or action of the Association may, after reason-
ably exhausting available avenues for resolution within the 
Association, commence a civil action in an appropriate 
United States district court, and obtain all appropriate re-
lief. 
‘‘(b) ASSOCIATION INTERPRETATIONS.—In any such 
action, the court shall give appropriate weight to the Asso-
ciation’s interpretation of its bylaws and this subtitle. 
‘‘SEC. 334. DEFINITIONS. 
‘‘For purposes of this subtitle, the following defini-
tions shall apply: 
‘‘(1) HOME
STATE.—The term ‘home State’ 
means the State in which the insurance producer 
maintains its principal place of residence or business 
and is licensed to act as an insurance producer. 
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‘‘(2) INSURANCE.—The term ‘insurance’ means 
any product, other than title insurance, defined or 
regulated as insurance by the appropriate State in-
surance regulatory authority. 
‘‘(3) INSURANCE PRODUCER.—The term ‘insur-
ance producer’ means any insurance agent or 
broker, excess or surplus lines broker or agent, in-
surance consultant, limited insurance representative, 
and any other individual or entity that solicits, nego-
tiates, effects, procures, delivers, renews, continues 
or binds policies of insurance or offers advice, coun-
sel, opinions or services related to insurance. 
‘‘(4) STATE.—The term ‘State’ includes any 
State, the District of Columbia, any territory of the 
United States, and Puerto Rico, Guam, American 
Samoa, the Trust Territory of the Pacific Islands, 
the Virgin Islands, and the Northern Mariana Is-
lands. 
‘‘(5) STATE LAW.— 
‘‘(A) IN GENERAL.—The term ‘State law’ 
includes all laws, decisions, rules, regulations, 
or other State action having the effect of law, 
of any State. 
‘‘(B) LAWS APPLICABLE IN THE DISTRICT 
OF COLUMBIA.—A law of the United States ap-
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plicable only to or within the District of Colum-
bia shall be treated as a State law rather than 
a law of the United States.’’. 
(b) CLERICAL AMENDMENT.—The table of contents 
for the Gramm-Leach-Bliley Act is amended by striking 
the items relating to subtitle C of title III and inserting 
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. Officers. 
‘‘Sec. 326. Bylaws, rules, and disciplinary action. 
‘‘Sec. 327. Powers. 
‘‘Sec. 328. Report by association. 
‘‘Sec. 329. Liability of the association and the directors, officers, and employees 
of the association. 
‘‘Sec. 330. Presidential oversight. 
‘‘Sec. 331. Relationship to State law. 
‘‘Sec. 332. Coordination with other regulators. 
‘‘Sec. 333. Judicial review and enforcement. 
‘‘Sec. 334. Definitions.’’. 
SEC. 3. COMPLIANCE PROVISION. 
The budgetary effects of this Act, for the purpose of 
complying with the Statutory Pay-As-You-Go-Act of 2010, 
shall be determined by reference to the latest statement 
titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 
Act, submitted for printing in the Congressional Record 
by the Chairman of the Committee on the Budget of the 
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House of Representatives, provided that such statement 
has been submitted prior to the vote on passage. 
Passed the House of Representatives March 3, 
2010. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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