IIB 
111TH CONGRESS 
2D SESSION 
H. R. 2554 
IN THE SENATE OF THE UNITED STATES 
MARCH 4, 2010 
Received; read twice and referred to the Committee on Banking, Housing, and 
Urban Affairs 
AN ACT 
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 2010’’. 
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; 
‘‘(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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‘‘(B) SEPARATE TREATMENT FOR DEPOSI-
TORY INSTITUTIONS PROHIBITED.—No special 
categories of membership, and no distinct mem-
bership criteria, shall be established for mem-
bers which are depository institutions or for 
employees, agents, or affiliates of depository in-
stitutions. 
‘‘(d) MEMBERSHIP CRITERIA.— 
‘‘(1) IN GENERAL.—The Association may estab-
lish criteria for membership which shall include 
standards for personal qualifications, education, 
training, and experience. 
‘‘(2) QUALIFICATIONS.—In establishing criteria 
under paragraph (1), the Association shall consider 
the NAIC Producer Licensing Model Act and the 
highest levels of insurance producer qualifications 
established under the licensing laws of the States. 
‘‘(3) ASSISTANCE FROM STATES.— 
‘‘(A) IN GENERAL.—The Association may 
request a State to provide assistance in inves-
tigating and evaluating a prospective member’s 
eligibility for membership in the Association. 
‘‘(B) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as requiring or 
authorizing any State to adopt new or addi-
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tional requirements concerning the licensing or 
evaluation of insurance producers. 
‘‘(4) DENIAL OF MEMBERSHIP.—The Associa-
tion may, based on reasonably consistently applied 
standards, deny membership to any State-licensed 
insurance producer for failure to meet the member-
ship criteria established by the Association. 
‘‘(e) EFFECT OF MEMBERSHIP.— 
‘‘(1) AUTHORITY OF ASSOCIATION MEMBERS.— 
Membership in the Association shall— 
‘‘(A) authorize an insurance producer to 
sell, solicit, negotiate, effect, procure, deliver, 
renew, continue, or bind insurance in any State 
for which the member pays the licensing fee set 
by such State for any line or lines of insurance 
specified in such producer’s home State license, 
and exercise all such incidental powers, as shall 
be necessary to carry out such activities, includ-
ing claims adjustments and settlement, risk 
management, employee benefits advice, retire-
ment planning, and any other insurance-related 
consulting activities; 
‘‘(B) be the equivalent of a nonresident in-
surance producer license issued in any State 
where the member pays the licensing fee; and 
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‘‘(C) subject an insurance producer to all 
laws, regulations, provisions or other action of 
any State concerning revocation or suspension 
of a member’s ability to engage in any activity 
within the scope of authority granted under this 
subsection and to all State laws, regulations, 
provisions and actions preserved under para-
graph (5). 
‘‘(2) DUPLICATIVE LICENSES.—No State, other 
than the member’s home State, may require an indi-
vidual member to obtain a business entity license or 
membership in order to engage in any activity within 
the scope of authority granted in paragraph (1) or 
in order for the member or any employer, employee, 
or affiliate of the member to receive compensation 
for the member’s performance of any such activity. 
‘‘(3) AGENT FOR REMITTING FEES.—The Asso-
ciation shall act as any member’s agent for purposes 
of remitting licensing fees to any State pursuant to 
paragraph (1). 
‘‘(4) REGULATOR NOTIFICATION.—The Associa-
tion shall notify the National Association of Insur-
ance Commissioners (hereinafter in this subtitle re-
ferred to as the ‘NAIC’) or its designee when a pro-
ducer becomes a member and identify, on an ongo-
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ing basis, the States in which the member is author-
ized to operate. 
‘‘(5) PRESERVATION OF STATE CONSUMER PRO-
TECTION AND MARKET CONDUCT REGULATION.—No 
provision of this section shall be construed as alter-
ing or affecting the continuing effectiveness of any 
law, regulation, provision, or other action of any 
State which purports to regulate market conduct or 
unfair trade practices or establish consumer protec-
tions to the extent that such law, regulation, provi-
sion, or other action is not inconsistent with the pro-
visions of this subtitle, and then only to the extent 
of such inconsistency. 
‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso-
ciation shall be renewed on a biennial basis. 
‘‘(g) CONTINUING EDUCATION.— 
‘‘(1) IN GENERAL.—The Association shall es-
tablish, as a condition of membership, continuing 
education requirements which shall be comparable to 
the continuing education requirements under the li-
censing laws of a majority of the States. 
‘‘(2) STATE CONTINUING EDUCATION REQUIRE-
MENTS.—A member may not be required to satisfy 
continuing education requirements imposed under 
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the laws, regulations, provisions, or actions of any 
State other than such member’s home State. 
‘‘(3) RECIPROCITY.—The Association shall not 
require a member to satisfy continuing education re-
quirements that are equivalent to any continuing 
education requirements of the member’s home State 
that have been satisfied by the member during the 
applicable licensing period. 
‘‘(4) LIMITATION ON ASSOCIATION.—The Asso-
ciation shall not directly or indirectly offer any con-
tinuing education courses for insurance producers. 
‘‘(h) PROBATION, SUSPENSION AND REVOCATION.— 
‘‘(1) DISCIPLINARY ACTION.—The Association 
may place an insurance producer that is a member 
of the Association on probation or suspend or revoke 
such producer’s membership in the Association, as 
the Association determines to be appropriate, if— 
‘‘(A) the producer fails to meet the appli-
cable membership criteria of the Association; or 
‘‘(B) the producer has been subject to dis-
ciplinary action pursuant to a final adjudicatory 
proceeding under the jurisdiction of a State in-
surance regulator. 
‘‘(2) REPORTING TO STATE REGULATORS.—The 
Association shall notify the NAIC or its designee 
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when a producer’s membership has been suspended, 
revoked, and otherwise terminated. 
‘‘(i) CONSUMER COMPLAINTS.— 
‘‘(1) IN GENERAL.—The Association shall— 
‘‘(A) receive and, when appropriate, inves-
tigate complaints from both consumers and 
State insurance regulators related to members 
of the Association; 
‘‘(B) refer any proper complaint received 
in accordance with subparagraph (A) and make 
any related records and information available to 
the NAIC or its designee and to each State in-
surance regulator for the State of residence of 
the consumer who filed the complaint; and 
‘‘(C) refer, when appropriate, any such 
complaint to any additional appropriate State 
insurance regulator. 
‘‘(2) TELEPHONE
AND
OTHER
ACCESS.—The 
Association shall maintain a toll-free telephone num-
ber for the purpose of this subsection and, as prac-
ticable, other alternative means of communication 
with consumers, such as an Internet web page. 
‘‘SEC. 324. BOARD OF DIRECTORS. 
‘‘(a) ESTABLISHMENT.—There is established the 
board of directors of the Association (hereafter in this sub-
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title referred to as the ‘Board’), which shall have authority 
to govern and supervise all activities of the Association. 
‘‘(b) POWERS.—The Board shall have such of the As-
sociation’s powers and authority as may be specified in 
the bylaws of the Association. 
‘‘(c) COMPOSITION.— 
‘‘(1) IN GENERAL.—The Board shall consist of 
11 members who shall be appointed by the Presi-
dent, by and with the advice and consent of the Sen-
ate, of whom— 
‘‘(A) 6 shall be State insurance commis-
sioners appointed in the manner provided in 
paragraph (2); 
‘‘(B) 2 shall be representatives of property 
and casualty insurance producers; 
‘‘(C) 1 shall be a representative of life or 
health insurance producers; 
‘‘(D) 1 shall be a representative of prop-
erty and casualty insurers; and 
‘‘(E) 1 shall be a representative of life or 
health insurers. 
‘‘(2) STATE
INSURANCE
REGULATOR
REP-
RESENTATIVES.— 
‘‘(A) Before making any appointments 
pursuant to subparagraph (A) of paragraph 
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(1), the President shall request a list of rec-
ommended candidates from the NAIC, which 
shall not be binding on the President. If the 
NAIC fails to submit list of recommendations 
within 15 days of the request, the President 
may make the requisite appointments without 
considering the views of the NAIC. 
‘‘(B) Not more than 3 members appointed 
to membership on the Board pursuant to sub-
paragraph (A) of paragraph (1) shall belong to 
the same political party. 
‘‘(C) If fewer than 6 State insurance com-
missioners accept appointment to the Board, 
the President may appoint the remaining State 
insurance commissioner members of the Board 
from among individuals who are former State 
insurance commissioners, provided that any 
former insurance commissioner so appointed 
shall not be employed by or have a present di-
rect or indirect financial interest in any insurer 
or other entity in the insurance industry other 
than direct or indirect ownership of, or bene-
ficial interest in, an insurance policy or annuity 
contract written or sold by an insurer. 
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‘‘(3) PRIVATE SECTOR REPRESENTATIVES.—In 
making any appointments pursuant to subpara-
graphs (B) through (E) of paragraph (1), the Presi-
dent may seek recommendations for candidates from 
national trade associations representing the category 
of individuals described, which shall not be binding 
on the President. 
‘‘(4) STATE
INSURANCE
COMMISSIONER
DE-
FINED.—For purposes of this subsection, the term 
‘State insurance commissioner’ means a person who 
serves in the position in State government, or on the 
board, commission, or other body that is the prin-
cipal insurance regulatory authority for the State. 
‘‘(d) TERMS.— 
‘‘(1) IN GENERAL.—The term of each Board 
member shall be for 2 years, except that— 
‘‘(A) the term of— 
‘‘(i) 3 of the State insurance commis-
sioner members of the Board initially ap-
pointed under subparagraph (A) of para-
graph (1); 
‘‘(ii) 1 of the property and casualty 
insurance producer members of the Board 
initially appointed under subparagraph (B) 
of paragraph (1); and 
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‘‘(iii) 1 of the insurer representative 
members of the Board initially appointed 
under subparagraphs (D) and (E) of para-
graph (1), 
shall be 1 year, as designated by the President 
at the time of the nomination of such members; 
‘‘(B) a member of the Board may continue 
to serve after the expiration of the term to 
which such member was appointed until a suc-
cessor is qualified; and 
‘‘(C) any member of the Board appointed 
to fill a vacancy occurring before the expiration 
of the term for which the member’s predecessor 
was appointed shall be appointed only for the 
remainder of that term. 
‘‘(2) SUCCESSIVE
TERMS.—Board members 
may be reappointed to successive terms. 
‘‘(e) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet at 
the call of the chairperson, as requested in writing 
to the chairperson by at least four members of the 
Board, or as otherwise provided by the bylaws of the 
Association. 
‘‘(2) QUORUM REQUIRED.—A majority of direc-
tors shall constitute a quorum. 
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‘‘(3) VOTING.—Decisions of the Board shall re-
quire the approval of a majority of all directors 
present at a meeting, a quorum being present. 
‘‘SEC. 325. OFFICERS. 
‘‘(a) POSITIONS.—The officers of the Association 
shall consist of a chairperson and a vice chairperson of 
the Board, an executive director, secretary, and treasurer 
of the Association, and such other officers and assistant 
officers as may be deemed necessary. 
‘‘(b) MANNER OF SELECTION.—Each officer of the 
Board and the Association shall be elected or appointed 
at such time, in such manner, and for such terms as may 
be prescribed in the bylaws of the Association. 
‘‘SEC. 326. BYLAWS, RULES, AND DISCIPLINARY ACTION. 
‘‘(a) ADOPTION AND AMENDMENT OF BYLAWS.— 
‘‘(1) COPY
REQUIRED
TO
BE
FILED.—The 
board of directors of the Association shall submit to 
the President and the NAIC any proposed bylaw or 
rules of the Association or any proposed amendment 
to the bylaws or rules, accompanied by a concise 
general statement of the basis and purpose of such 
proposal. 
‘‘(2) EFFECTIVE DATE.—Any proposed bylaw 
or rule or proposed amendment to the bylaws or 
rules shall take effect, after notice published in the 
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Federal Register and opportunity for comment, upon 
such date as the Association may designate, unless 
suspended under subsection (c) of section 330. 
‘‘(b) 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’) or to determine whether a member of the As-
sociation should be placed on probation, the Associa-
tion shall bring specific charges, notify such member 
of such charges, give the member 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. 
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‘‘SEC. 327. POWERS. 
‘‘In addition to all the powers conferred upon a non-
profit corporation by the District of Columbia Nonprofit 
Corporation Act, the Association shall have the following 
powers: 
‘‘(1) To establish and collect such membership 
fees as the Association finds necessary to impose to 
cover the costs of its operations. 
‘‘(2) To adopt, amend, and repeal bylaws and 
rules governing the conduct of Association business 
and performance of its duties. 
‘‘(3) To establish procedures for providing no-
tice and opportunity for comment pursuant to sec-
tion 326(a). 
‘‘(4) To enter into and perform such agree-
ments as necessary to carry out its duties. 
‘‘(5) To hire employees, professionals or special-
ists, and elect or appoint officers, and to fix their 
compensation, define their duties and give them ap-
propriate authority to carry out the purposes of this 
subtitle, and determine their qualification; and to es-
tablish the Association’s personnel policies and pro-
grams relating to, among other things, conflicts of 
interest, rates of compensation, and qualifications of 
personnel. 
‘‘(6) To borrow money. 
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