and indirect operating costs of the Office, including the 
salary and administrative expenses of the Office. 
(h) APPROPRIATIONS DURING START-UP PERIOD.— 
(1) AUTHORIZATION.—The Commissioner may 
borrow from the Secretary of the Treasury such 
funds as the Commissioner determines to be nec-
essary and appropriate to organize and begin oper-
ations of the Office. 
(2) PAYMENT.—Any loan extended pursuant to 
paragraph (1) shall be repaid, in full (with interest 
at a rate set by the Secretary of the Treasury), 
within 30 years following the date of enactment of 
this Act, with individual payments on any loan to be 
made in such amounts and at such times as the 
Commissioner determines to be appropriate. 
(i) RULEMAKING.—The Commissioner shall promul-
gate regulations with respect to the computation, assess-
ment, and collection of the fees and assessments provided 
for in this section. 
SEC. 123. DISCLOSURE OF INFORMATION. 
(a) REGULATIONS REQUIRED.—The Commissioner 
shall, by regulation, establish standards for the disclosure 
of examination reports, applications, filings, correspond-
ence, records, and other information prepared by, or sub-
mitted to, the Commissioner. 
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(b) 
SUPERVISORY
PRIVILEGE.—The 
regulation 
issued pursuant to subsection (a) shall prohibit the disclo-
sure of confidential supervisory information, as such infor-
mation is defined by the Commissioner in such regulation. 
(c) OTHER PRIVILEGES.—The submission of any in-
formation to the Commissioner shall not waive or other-
wise affect any privilege a person may claim with respect 
to such information under Federal or State law as to a 
party other than the Commissioner. 
SEC. 124. REPORTING REQUIREMENT. 
(a) GENERAL AUTHORITY.—The Commissioner is 
authorized to require National Insurers and National 
Agencies to make such reports, containing such informa-
tion and in such form, as the Commissioner may prescribe 
by regulation. 
(b) FINANCIAL STATEMENTS.—Each National In-
surer holding a Federal license shall submit annual and 
quarterly financial statements, in compliance with the ac-
counting principles and auditing standards specified under 
section 211, to the Commissioner at such times and in 
such form as the Commissioner may require under regula-
tions promulgated pursuant to subsection (c). 
(c) REGULATIONS.—The Commissioner shall promul-
gate regulations that— 
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(1) specify the information that shall be dis-
closed in the financial statements required under 
subsection (b); and 
(2) specify any additional financial schedules 
that National Insurers shall make available for ex-
amination by the Commissioner upon request. 
SEC. 125. RELATIONSHIP TO STATE LAW. 
(a) IN GENERAL.—Except as provided under sub-
section (b) or otherwise authorized under Federal law, Na-
tional Insurers, National Agencies, and federally licensed 
insurance producers shall not be subject to any form of 
State licensing, examination, reporting, regulation, or 
other supervision relating to— 
(1) the sale, solicitation, or negotiation of insur-
ance; 
(2) the underwriting of insurance; or 
(3) any other insurance operations, including all 
products, marketing and sales practices, claims ad-
justment and settlement, financial condition and sol-
vency, and holding company transactions. 
(b) APPLICABLE
STATE
LAWS.—Notwithstanding 
subsection (a), National Insurers, National Agencies, and 
federally licensed insurance producers shall be subject 
to— 
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(1) applicable State unclaimed property and es-
cheat laws; 
(2) applicable tax laws of a State in accordance 
with sections 251 and 252; 
(3) applicable State law relating to participa-
tion in an assigned risk plan, mandatory joint un-
derwriting association, or any other mandatory re-
sidual market mechanism designed to make insur-
ance available to those unable to obtain insurance in 
the voluntary market, except to the extent that such 
State law— 
(A) relates to participation in any vol-
untary joint underwriting association or similar 
arrangement; 
(B) results in rates in effect for an as-
signed risk plan, mandatory joint underwriting 
association, or any other mandatory residual 
market mechanism that fail to cover the ex-
pected value of all future costs associated with 
insurance policies written by such residual mar-
ket mechanism; 
(C) requires a National Insurer to use any 
particular rate, rating element, price or form; 
or 
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(D) is inconsistent with any provision of 
this Act; 
(4) applicable State insurance law that pre-
scribes the compulsory coverage requirements for 
workers’ compensation or motor vehicle insurance, 
or both, that every insurer must provide if the in-
surer issues insurance policies in such State, except 
to the extent that such State law requires a National 
Insurer to use any particular rate, rating element, or 
price; 
(5) applicable State insurance law mandating 
the participation of insurers in an advisory or statis-
tical organization, except to the extent that such 
State law requires a National Insurer to use any 
particular rate, rating element, price, or form; and 
(6) applicable State law relating to participa-
tion in a workers’ compensation administration 
mechanism, except to the extent that such State law 
is inconsistent with any provision of this Act. 
Subtitle C—Enforcement of 
Federal Insurance Laws 
SEC. 141. NATIONAL INSURER LICENSE SUSPENSION, RE-
STRICTION, OR REVOCATION. 
(a) IN GENERAL.—In accordance with the conditions 
under this section, the Commissioner may revoke or re-
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strict the Federal license of a National Insurer if the Com-
missioner determines that the National Insurer— 
(1) has engaged in conduct that is hazardous to 
the National Insurer and that involves an undue risk 
to the National Insurer’s policyholders; 
(2) is in a financial or other condition that is 
not consistent with the continuation of existing oper-
ations; or 
(3) has violated any— 
(A) applicable law or regulation; 
(B) order or condition imposed in writing 
by the Commissioner in connection with the ap-
proval of an application, filing, statement, no-
tice, or other request by the National Insurer; 
or 
(C) written agreement entered into be-
tween the National Insurer and the Commis-
sioner. 
(b) NOTICE TO NATIONAL INSURER.— 
(1) IN GENERAL.—If the Commissioner deter-
mines under subsection (a) that the Federal license 
of a National Insurer should be revoked or re-
stricted, the Commissioner shall— 
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(A) serve the National Insurer with written 
notice of the intent of the Commissioner to re-
voke or restrict such Federal license; 
(B) provide the National Insurer with a 
statement of the basis for the determination to 
revoke or restrict such Federal license; and 
(C) notify, not less than 30 days before a 
hearing under subsection (c), of the date and 
place of the hearing. 
(2) NOTICE OF SERVICE.—Any service required 
or authorized to be made by the Commissioner 
under this section may be made by registered mail, 
or in such other manner reasonably calculated to 
give actual notice as the Commissioner may by regu-
lation or otherwise provide. 
(c) REVOCATION OR RESTRICTION HEARING.— 
(1) IN GENERAL.—Before revoking or restrict-
ing a Federal license, the Commissioner shall con-
duct a hearing in accordance with section 554 of 
title 5, United States Code, to determine if the con-
ditions described in subsection (a) exist. 
(2) AUTHORITY TO REVOKE OR RESTRICT FED-
ERAL LICENSE.—If, on the basis of the evidence pre-
sented at the hearing under paragraph (1) and the 
written findings of the Commissioner with respect to 
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such evidence, the Commissioner establishes the ex-
istence of any conduct, condition, or violation speci-
fied in the notice sent to a National Insurer under 
subsection (b), the Commissioner may issue an order 
revoking or restricting the Federal license of the Na-
tional Insurer, which shall be effective as of a date 
subsequent to such finding. 
(3) CONSENT
TO
REVOCATION
OR
RESTRIC-
TION.—If a duly authorized representative of the 
National Insurer fails to appear at the hearing 
under this subsection, the National Insurer shall be 
deemed to have consented to the revocation or re-
striction of its Federal license, and the Commis-
sioner may immediately revoke or restrict such Fed-
eral license. 
(d) PUBLICATION OF NOTICE OF REVOCATION OR 
RESTRICTION.— 
(1) NOTICE BY NATIONAL INSURER.— 
(A) IN GENERAL.—The National Insurer 
shall give notice of a revocation or restriction of 
its Federal license under this section to each 
policyholder affected by the revocation or re-
striction. 
(B) TYPE OF NOTICE..—Notice under this 
paragraph shall be sent to the policyholder’s 
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last address of record on the books of the Na-
tional Insurer, in such manner and at such time 
as the Commissioner determines to be necessary 
for the protection of policyholders. 
(2) NOTICE BY COMMISSIONER.— 
(A) IN
GENERAL.—The Commissioner 
shall publish notice of a revocation or restric-
tion under this section. If the Commissioner de-
termines that a National Insurer has not given 
notice of an order under this subsection in ac-
cordance with the requirements of the Commis-
sioner, the Commissioner may provide such no-
tice in such manner as the Commissioner may 
find to be necessary and proper. 
(B) COSTS.—The cost of any notice pro-
vided under subparagraph (A) shall be paid by 
the National Insurer. 
(e) TEMPORARY SUSPENSION OR RESTRICTION.— 
(1) IN GENERAL.—If the Commissioner, in the 
course of a revocation proceeding under this section, 
finds that the National Insurer poses an immediate 
threat to the interests of its policyholders or to the 
public, the Commissioner shall issue an order tempo-
rarily suspending or restricting the Federal license 
of the National Insurer. 
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(2) NOTICE
OF
TEMPORARY
ORDER.—A Na-
tional Insurer whose Federal license is temporarily 
suspended or restricted under this subsection shall 
give notice of an order issued under this paragraph 
to each affected policyholder in such manner and at 
such times as the Commissioner may find to be nec-
essary and may order for the protection of policy-
holders and the public. 
(3) 
EFFECTIVE
PERIOD
OF
TEMPORARY 
ORDER.—A temporary order issued under paragraph 
(1) shall— 
(A) become effective not earlier than 10 
days from the date of service upon the National 
Insurer; and 
(B) unless set aside, limited, or suspended 
by a court in proceedings authorized under 
paragraph (4), remain effective and enforceable 
until the earlier of— 
(i) the effective date of an order under 
subsection (c)(2); or 
(ii) the date on which the Commis-
sioner determines that there is insufficient 
evidence to revoke or restrict a Federal li-
cense under this subsection. 
(4) JUDICIAL REVIEW.— 
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(A) IN GENERAL.—During the 10-day pe-
riod beginning on the date on which a tem-
porary order has been issued under paragraph 
(1), the National Insurer may apply to a court 
described in subparagraph (B) for an injunction 
setting aside, limiting, or suspending the en-
forcement, operation, or effectiveness of such 
order. 
(B) JURISDICTION.—The United States 
District Court for the District of Columbia and 
the United States district court for the judicial 
district in which the main office of the National 
Insurer is located shall have jurisdiction to 
issue an injunction under this paragraph. 
(f) DECISION TO SUSPEND, RESTRICT, OR RE-
VOKE.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2), any decision by the Commissioner to 
suspend, restrict, or revoke a Federal license under 
this section shall be made by the Commissioner and 
may not be delegated. 
(2) EXCEPTION.—The Commissioner may, by 
order, designate an employee of the Office who may 
make a decision described in paragraph (1) if the 
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Commissioner is not able to act by reason of recusal 
or is otherwise disqualified from acting. 
(g) JUDICIAL REVIEW.—Any National Insurer whose 
Federal license has been revoked or restricted by order 
of the Commissioner under this section shall have the 
right of judicial review of such order only to the same ex-
tent as provided for the review of orders under section 
148. 
SEC. 142. SUSPENSION, RESTRICTION, OR REVOCATION OF 
FEDERAL LICENSE OF NATIONAL AGENCIES 
AND FEDERALLY LICENSED INSURANCE PRO-
DUCERS. 
(a) IN GENERAL.—In accordance with the provisions 
of this section, the Commissioner may revoke or restrict 
the Federal producer license, including lines of insurance 
covered by such license, of a National Agency or other fed-
erally licensed insurance producer if the Commissioner de-
termines that the Agency or producer has— 
(1) violated any applicable law, regulation, 
order, condition imposed in writing by the Commis-
sioner in connection with the approval of an applica-
tion, filing, statement, notice or other request by the 
producer, or written agreement entered into between 
the producer and the Commissioner; 
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(2) provided incorrect, misleading, incomplete 
or materially untrue information in an application 
for a Federal charter or a Federal producer license; 
(3) used fraudulent, coercive, or dishonest prac-
tices; or 
(4) 
demonstrated 
incompetence, 
untrustworthiness, or financial irresponsibility as an 
insurance producer. 
(b) NOTICE TO FEDERALLY LICENSED INSURANCE 
PRODUCER.—If the Commissioner determines that any 
conduct, breach, or violation specified in subsection (a) re-
quires revocation or restriction of the Federal producer li-
cense of a National Agency or other federally licensed in-
surance producer, the Commissioner shall— 
(1) serve written notice on the National Agency 
or other federally licensed insurance producer of the 
Commissioner’s intention to revoke or restrict the 
Federal producer license; 
(2) provide the National Agency or other feder-
ally licensed insurance producer with a statement of 
the basis for the determination to revoke or restrict 
the Federal producer license; and 
(3) notify the National Agency or other feder-
ally licensed insurance producer, not less than 30 
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days before a hearing under subsection (c), of the 
date and place of the hearing. 
(c) REVOCATION OR RESTRICTION HEARING.— 
(1) IN GENERAL.—Before revoking or restrict-
ing a Federal producer license, the Commissioner 
shall conduct a hearing in accordance with section 
554 of title 5, United States Code, to determine if 
the conditions described in subsection (a) exist. 
(2) AUTHORITY TO REVOKE OR RESTRICT FED-
ERAL LICENSE.—If, on the basis of the evidence pre-
sented at the hearing under paragraph (1) and the 
written findings of the Commissioner with respect to 
such evidence, the Commissioner finds any conduct, 
condition, or violation specified in the notice sent to 
a National Agency or other federally licensed insur-
ance producer under subsection (b), the Commis-
sioner may issue an order revoking or restricting the 
Federal producer license of the National Agency or 
other federally licensed insurance producer, which 
shall be effective as of a date subsequent to such 
finding. 
(3) CONSENT
TO
REVOCATION
OR
RESTRIC-
TION.—If a duly authorized representative of the 
National Agency or other federally licensed insur-
ance producer fails to appear at the hearing under 
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this subsection, the National Agency or other feder-
ally licensed insurance producer shall be deemed to 
have consented to the revocation or restriction of its 
Federal producer license, and the Commissioner may 
immediately revoke or restrict such Federal producer 
license. 
(d) NOTICE OF REVOCATION OR RESTRICTION.— 
(1) NOTICE BY FEDERALLY LICENSED INSUR-
ANCE PRODUCER.—Each National Agency or other 
federally licensed insurance producer shall give writ-
ten notice of such revocation or restriction to each 
National Insurer, State insurer, or United States 
branch of a non-United States insurer for which 
such producer acts as an insurance producer. 
(2) NOTICE BY COMMISSIONER.— 
(A) IN
GENERAL.—The Commissioner 
shall publish notice of a revocation or restric-
tion under this section. If the Commissioner de-
termines that a National Agency or other feder-
ally licensed insurance producer has not given 
notice of an order under this subsection in ac-
cordance with the requirements of the Commis-
sioner, the Commissioner may provide such no-
tice in any manner the Commissioner deter-
mines to be necessary and proper. 
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(B) COSTS.—The cost of any notice pro-
vided under subparagraph (A) shall be paid by 
the National Agency or other federally licensed 
insurance producer. 
(e) TEMPORARY SUSPENSION OR RESTRICTION.— 
(1) IN GENERAL.—If the Commissioner, in the 
course of a revocation or restriction proceeding 
under this section, finds that the National Agency or 
other federally licensed insurance producer poses an 
immediate threat to the interests of the policyholders 
of a National Insurer, a State insurer, or a United 
States branch of a non-United States insurer or to 
the public, the Commissioner may issue a temporary 
order suspending or restricting the Agency’s or other 
producer’s Federal producer license. 
(2) NOTICE OF TEMPORARY ORDER.—The Na-
tional Agency or other federally licensed insurance 
producer shall give notice of a temporary order 
issued under this paragraph in such manner and at 
such times as the Commissioner may find to be nec-
essary and may order for the protection of policy-
holders and the public. 
(3) 
EFFECTIVE
PERIOD
OF
TEMPORARY 
ORDER.—Any temporary order issued under para-
graph (1) shall— 
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(A) become effective not earlier than 10 
days from the date of service upon the National 
Agency or other federally licensed insurance 
producer; and 
(B) unless set aside, limited, or suspended 
by a court under paragraph (4), remain effec-
tive and enforceable until an order of the Com-
missioner under subsection (c) becomes final or 
until the Commissioner dismisses the pro-
ceedings under paragraph (4). 
(4) JUDICIAL REVIEW.— 
(A) IN GENERAL.—During the 10-day pe-
riod beginning on the date on which a tem-
porary order has been issued under paragraph 
(1), the National Agency or other federally li-
censed insurance producer may apply to a court 
described in subparagraph (B) for an injunction 
setting aside, limiting, or suspending the en-
forcement, operation, or effectiveness of such 
order. 
(B) JURISDICTION.—The United States 
District Court for the District of Columbia and 
the United States district court for the judicial 
district in which the federally licensed insurance 
producers (or the main office of the National 
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Agency) is located shall have jurisdiction to 
issue an injunction under this paragraph. 
(f) JUDICIAL REVIEW.—Any National Agency or 
other federally licensed insurance producer whose Federal 
producer license has been revoked or restricted by order 
of the Commissioner under this subsection shall have the 
right of judicial review of such order only to the same ex-
tent as provided for the review of orders under section 
148. 
SEC. 143. CEASE-AND-DESIST PROCEEDINGS. 
(a) NOTICE.— 
(1) ISSUANCE.—The Commissioner may issue 
and serve upon a National Insurer, National Agency, 
federally licensed insurance producer, or insurer-af-
filiated party a notice of charges if the Commis-
sioner determines that such Insurer, Agency, pro-
ducer, or party— 
(A) has engaged, or is about to engage, in 
conduct that is hazardous to a National In-
surer, a State insurer, or a United States 
branch of a non-United States insurer and in-
volves an undue risk to the policyholders, as a 
whole, of a National Insurer, a State insurer, or 
a United States branch of a non-United States 
insurer; or 
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