297
ing to the administration or organization of the
Association shall take effect—
(i) upon the date of filing with the
NAIC, if such proposed rule or amendment
is designated by the Association as relating
solely to matters which the NAIC, consist-
ent with the public interest and the pur-
poses of this subsection, determines by rule
do not require the procedures set forth in
this paragraph; or
(ii) upon such date as the NAIC shall
for good cause determine.
(B) ABROGATION BY THE NAIC.—
(i) IN GENERAL.—At any time within
60 days after the date of filing of any pro-
posed rule or amendment under subpara-
graph (A)(i) or clause (ii) of this subpara-
graph, the NAIC may repeal such rule or
amendment and require that the rule or
amendment be refiled and reviewed in ac-
cordance with this paragraph, if the NAIC
finds that such action is necessary or ap-
propriate in the public interest, for the
protection of insurance producers or policy-
298
holders, or otherwise in furtherance of the
purposes of this subtitle.
(ii) EFFECT OF RECONSIDERATION BY
THE NAIC.—Any action of the NAIC pur-
suant to clause (i) shall—
(I) not affect the validity or force
of a rule change during the period
such rule or amendment was in effect;
and
(II) not be considered to be a
final action.
(c) ACTION REQUIRED BY THE NAIC.—The NAIC
may, in accordance with such rules as the NAIC deter-
mines to be necessary or appropriate to the public interest
or to carry out the purposes of this subtitle, require the
Association to adopt, amend, or repeal any bylaw, rule or
amendment of the Association, whenever adopted.
(d) 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-
after in this section referred to as a ‘‘disciplinary ac-
tion’’), the Association shall bring specific charges,
notify such member of such charges, give the mem-
299
ber 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.
(e) NAIC REVIEW OF DISCIPLINARY ACTION.—
(1) NOTICE TO THE NAIC.—If the Association
orders any disciplinary action, the Association shall
promptly notify the NAIC of such action.
(2) REVIEW BY THE NAIC.—Any disciplinary
action taken by the Association shall be subject to
review by the NAIC—
(A) on the NAIC’s own motion; or
(B) upon application by any person ag-
grieved by such action if such application is
filed with the NAIC not more than 30 days
after the later of—
300
(i) the date the notice was filed with
the NAIC pursuant to paragraph (1); or
(ii) the date the notice of the discipli-
nary action was received by such aggrieved
person.
(f) EFFECT OF REVIEW.—The filing of an applica-
tion to the NAIC for review of a disciplinary action, or
the institution of review by the NAIC on the NAIC’s own
motion, shall not operate as a stay of disciplinary action
unless the NAIC otherwise orders.
(g) SCOPE OF REVIEW.—
(1) IN GENERAL.—In any proceeding to review
such action, after notice and the opportunity for
hearing, the NAIC shall—
(A) determine whether the action should be
taken;
(B) affirm, modify, or rescind the discipli-
nary sanction; or
(C) remand to the Association for further
proceedings.
(2) DISMISSAL OF REVIEW.—The NAIC may
dismiss a proceeding to review disciplinary action if
the NAIC finds that—
(A) the specific grounds on which the ac-
tion is based exist in fact;
301
(B) the action is in accordance with appli-
cable rules and regulations; and
(C) such rules and regulations are, and
were, applied in a manner consistent with the
purposes of this subtitle.
SEC. 329. ASSESSMENTS.
(a) INSURANCE PRODUCERS SUBJECT TO ASSESS-
MENT.—The Association may establish such application
and membership fees as the Association finds necessary
to cover the costs of its operations, including fees made
reimbursable to the NAIC under subsection (b), except
that, in setting such fees, the Association may not dis-
criminate against smaller insurance producers.
(b) NAIC ASSESSMENTS.—The NAIC may assess the
Association for any costs that the NAIC incurs under this
subtitle.
SEC. 330. FUNCTIONS OF THE NAIC.
(a) ADMINISTRATIVE PROCEDURE.—Determinations
of the NAIC, for purposes of making rules pursuant to
section 328, shall be made after appropriate notice and
opportunity for a hearing and for submission of views of
interested persons.
(b) EXAMINATIONS AND REPORTS.—
(1) EXAMINATIONS.—The NAIC may make
such examinations and inspections of the Association
302
and require the Association to furnish to the NAIC
such reports and records or copies thereof as the
NAIC may consider necessary or appropriate in the
public interest or to effectuate the purposes of this
subtitle.
(2) REPORT
BY
ASSOCIATION.—As soon as
practicable after the close of each fiscal year, the As-
sociation shall submit to the NAIC a written report
regarding the conduct of its business, and the exer-
cise of the other rights and powers granted by this
subtitle, during such fiscal year. Such report 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 (includ-
ing the source and application of its funds) for such
fiscal year. The NAIC shall transmit such report to
the President and the Congress with such comment
thereon as the NAIC determines to be appropriate.
SEC. 331. LIABILITY OF THE ASSOCIATION AND THE DIREC-
TORS, 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-