(B) remain in effect and enforceable as 
provided therein, unless stayed, modified, termi-
nated, or set aside by action of the Commis-
sioner or a reviewing court. 
(4) AUTHORITY TO LIMIT ACTIVITIES.—The au-
thority to issue an order under this section includes 
the authority to place limitations on the activities or 
functions of a national insurer, national agency, a 
federally licensed insurance producer, or an insurer- 
affiliated party. 
(5) STANDARD FOR CERTAIN ORDERS.—No au-
thority under this section to prohibit any insurer-af-
filiated party from withdrawing, transferring, remov-
ing, dissipating, or disposing of any funds, assets, or 
other property may be exercised, unless the Commis-
sioner meets the standards of Rule 65 of the Federal 
Rules of Civil Procedure, without regard to the re-
quirement of such rule that the applicant show that 
the injury, loss, or damage is irreparable and imme-
diate. 
(d) TEMPORARY CEASE-AND-DESIST ORDERS.— 
(1) IN GENERAL.—If the Commissioner deter-
mines that the violation, threatened violation, or 
conduct specified in the notice of charges served 
under subsection (c)(1) is likely to cause insolvency 
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bajohnson on PROD1PC69 with BILLS
or significant dissipation of assets or earnings of a 
national insurer or a State insurer, or is likely to 
weaken the condition of a national insurer or a State 
insurer or otherwise prejudice the interests of the 
policyholders, as a whole, of a national insurer or a 
State insurer before the completion of the pro-
ceedings conducted under subsection (c)(1), the 
Commissioner may issue a temporary order requir-
ing the national insurer, national agency, producer, 
or party to— 
(A) cease and desist from any such viola-
tion or conduct; and 
(B) take affirmative action to prevent or 
remedy such insolvency, dissipation, condition, 
or prejudice pending completion of such pro-
ceedings. 
(2) CONTENTS OF ORDER; EFFECTIVE DATE.— 
A temporary cease-and-desist order issued under 
paragraph (1)— 
(A) may include any action authorized 
under section 1144(2); 
(B) shall become effective upon service to 
the national insurer, national agency, producer, 
or party; and 
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(C) unless set aside, limited, or suspended 
by a court under paragraph (3), shall remain in 
effect and enforceable until the date on which— 
(i) administrative proceedings pursu-
ant to such order are completed; 
(ii) the Commissioner dismisses the 
charges specified in such order; or 
(iii) if a cease-and-desist order is 
issued against such national insurer, na-
tional agency, producer, or party, such 
order is effective. 
(3) INJUNCTION.— 
(A) IN GENERAL.—A national insurer, na-
tional agency, federally licensed insurance pro-
ducer, or insurer-affiliated party that has been 
served with a temporary cease-and-desist order 
under this subsection may, not later than 10 
days after the date of such service, apply to a 
court described in subparagraph (B) for an in-
junction setting aside, limiting, or suspending 
the enforcement, operation, or effectiveness of 
such order until the completion of administra-
tive proceedings under this section. 
(B) JURISDICTION.—The United States 
District Court for the District of Columbia and 
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the United States district court for the judicial 
district in which the producer, party, or main 
office of the national insurer or national agency 
is located shall have jurisdiction to issue an in-
junction under this paragraph. 
(4) INCOMPLETE OR INACCURATE RECORDS.— 
(A) TEMPORARY ORDER.—If a notice of 
charges served under subsection (a) specifies, 
on the basis of particular facts and cir-
cumstances, that the books and records of a na-
tional insurer are so incomplete or inaccurate 
that the Commissioner is unable, through the 
normal supervisory process, to determine the fi-
nancial condition of that national insurer or the 
details or purpose of any transaction or trans-
actions that may have a material effect on the 
financial condition of that national insurer, the 
Commissioner may issue a temporary order re-
quiring— 
(i) the cessation of any activity or 
practice which gave rise to the incomplete 
or inaccurate state of the books or records; 
or 
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(ii) affirmative action to restore such 
books or records to a complete and accu-
rate state. 
(B) EFFECTIVE
PERIOD.—A temporary 
order issued under subparagraph (A)— 
(i) shall become effective upon service; 
and 
(ii) unless set aside, limited, or sus-
pended by a court in proceedings under 
paragraph (2), shall remain in effect and 
enforceable until the earlier of— 
(I) the completion of the pro-
ceeding initiated under subsection (a) 
in connection with the notice of 
charges; or 
(II) the date the Commissioner 
determines, by examination or other-
wise, that the books and records of 
the national insurer accurately reflect 
the financial condition of the national 
insurer. 
SEC. 1144. AFFIRMATIVE ACTION TO CORRECT CONDITIONS 
RESULTING FROM VIOLATIONS OR CONDUCT. 
The authority granted to the Commissioner under 
this subtitle to issue an order that requires a national in-
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surer, national agency, federally licensed insurance pro-
ducer, or insurer-affiliated party to take affirmative action 
to correct or remedy any condition resulting from any vio-
lation or conduct with respect to which such order is 
issued includes the authority to require such national in-
surer, national agency, producer, or party to— 
(1) restrict the growth of the national insurer; 
(2) dispose of any asset or insurance policy or 
reinsurance contract; 
(3) rescind any other agreements or contracts, 
other than insurance policies or reinsurance con-
tracts, to which the national insurer is the issuer; 
(4) employ qualified officers or employees, sub-
ject to approval by the Commissioner; and 
(5) take such other action as the Commissioner 
determines to be appropriate if— 
(A) such national insurer, national agency, 
producer, or party was unjustly enriched in con-
nection with such violation or conduct; or 
(B) the violation or conduct involved a 
reckless disregard for the law or any applicable 
regulations or prior order of the Commissioner. 
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SEC. 1145. SUSPENSION, REMOVAL, AND PROHIBITION AU-
THORITY. 
(a) AUTHORITY TO ISSUE ORDER.—The Commis-
sioner may serve a written notice of the Commissioner’s 
intention to suspend or remove an insurer-affiliated party 
from office or to prohibit any further participation by such 
party in the conduct of the affairs of any national insurer 
or national agency, if the Commissioner determines that— 
(1) an insurer-affiliated party has— 
(A) violated— 
(i) any law or regulation; 
(ii) any final cease-and-desist order 
issued under section 1143; 
(iii) any condition imposed in writing 
by the Commissioner in connection with 
the grant of any application, filing, state-
ment, notice, or other request by such na-
tional insurer or national agency; or 
(iv) any written agreement between 
such national insurer or national agency 
and the Commissioner; 
(B) engaged or participated in any conduct 
that— 
(i) is hazardous to the national in-
surer or national agency; and 
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(ii) involves an undue risk to the pol-
icyholders of such national insurer, as a 
whole, or the policyholders, as a whole, 
serviced by such national agency; or 
(C) committed or engaged in any act, 
omission, or practice, which constitutes a 
breach of the fiduciary duty of such party; 
(2) through any violation, conduct, practice, or 
breach described in paragraph (1)— 
(A) such national insurer or national agen-
cy has suffered, or will probably suffer, finan-
cial loss or other damage; 
(B) the interests of the policyholders of the 
national insurer or the policyholders serviced by 
the national agency have been, or could be, 
prejudiced; or 
(C) such party has received financial gain 
or other benefit by reason of such violation, 
practice, or breach; and 
(3) the violation, conduct, practice, or breach— 
(A) involves personal dishonesty on the 
part of such party; or 
(B) demonstrates willful or continuing dis-
regard by such party for the condition of such 
national insurer or national agency or the inter-
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ests of the national insurer’s policyholders or 
the policyholders serviced by the national agen-
cy. 
(b) TEMPORARY SUSPENSION ORDER.— 
(1) SUSPENSION
OR
PROHIBITION
AUTHOR-
IZED.—If the Commissioner serves written notice 
under subsection (a) on any insurer-affiliated party 
of the Commissioner’s intention to issue an order 
under such subsection, the Commissioner may issue 
a temporary order suspending such party from office 
or prohibiting such party from further participation 
in any manner in the conduct of the affairs of the 
national insurer or national agency, if the Commis-
sioner— 
(A) determines that such action is nec-
essary for the protection of the national insurer 
or its policyholders or the national agency or 
the policyholders serviced by such Agency; and 
(B) serves such party with the temporary 
order of suspension or prohibition. 
(2) EFFECTIVE PERIOD.—Any temporary order 
issued under paragraph (1)— 
(A) shall become effective upon service; 
and 
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(B) unless a court issues a stay of such 
order under subsection (e), shall remain in ef-
fect and enforceable until— 
(i) the date the Commissioner dis-
misses the charges contained in the notice 
served under subsection (a) with respect to 
such party; or 
(ii) the effective date of an order 
issued by the Commissioner to such party 
under subsection (a). 
(3) COPY
OF
ORDER.—If the Commissioner 
issues a temporary order under paragraph (1) to any 
insurer-affiliated party, the Commissioner shall serve 
a copy of such order on any national insurer or na-
tional agency with which such party is affiliated at 
the time such order is issued. 
(c) PROCEDURES.— 
(1) CONTENTS
OF
NOTICE.—A notice served 
under subsection (a) shall include— 
(A) a statement of the grounds for facts 
underlying such notice; and 
(B) the time and place of a hearing to be 
held thereon. 
(2) HEARING.—The hearing referred to in 
paragraph (1)(B) shall take place not earlier than 
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bajohnson on PROD1PC69 with BILLS
30 days nor later than 60 days after the date of 
service of notice under subsection (a), unless another 
date is set by the Commissioner at the request of 
such party. 
(3) SUSPENSION OR REMOVAL.— 
(A) FAILURE TO APPEAR.—If a duly au-
thorized representative of the party receiving 
notice of a hearing under this subsection fails 
to appear at such hearing, such party shall be 
deemed to have consented to the issuance of an 
order of such removal or prohibition. 
(B) SUSPENSION
OR
REMOVAL.—In the 
event of such consent, or if upon the record 
made at any hearing under this subsection the 
Commissioner finds that any of the grounds 
specified in such notice have been established, 
the Commissioner may issue such orders of sus-
pension or removal from office, or prohibition 
from participation in the conduct of the affairs 
of the national insurer or national agency, as 
the Commissioner determines to be appropriate. 
(C) EFFECTIVE DATE.—Any order issued 
under subparagraph (B) shall become effective 
on the expiration of 30 days after service upon 
the national insurer or national agency and 
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such party (except in the case of an order 
issued upon consent, which shall become effec-
tive at the time specified in such order). Such 
order shall remain effective and enforceable as 
provided therein, except to such extent as it is 
stayed, modified, terminated, or set aside by ac-
tion of the Commissioner or a reviewing court. 
(d) INDUSTRYWIDE PROHIBITION.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2), any person who, pursuant to any 
order issued under this section or section 1146, has 
been removed or suspended from office in a national 
insurer or national agency or prohibited from par-
ticipating in the conduct of the affairs of a national 
insurer or national agency may not, while such order 
is in effect— 
(A) continue or commence to hold any of-
fice in, or participate in any manner in the con-
duct of the affairs of any national insurer or 
national agency; 
(B) solicit, procure, transfer, attempt to 
transfer, vote, or attempt to vote any proxy, 
consent, or authorization with respect to any 
voting rights in any national insurer or national 
agency; 
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(C) act as an insurer-affiliated party; or 
(D) act as a federally licensed insurance 
producer. 
(2) EXCEPTION.—If, on or after the date on 
which an order is issued under this subsection that 
removes or suspends from office any insurer-affili-
ated party or prohibits such party from participating 
in the conduct of the affairs of a national insurer or 
national agency, such party receives the written con-
sent of the Commissioner, paragraph (1) shall, to 
the extent of such consent, cease to apply to such 
party with respect to the national insurer or national 
agency described in each written consent. 
(3) VIOLATION
OF
ORDER.—Any violation of 
paragraph (1) by any person who is subject to an 
order described in such subparagraph shall be treat-
ed as a violation of the order. 
(e) STAY OF SUSPENSION OR PROHIBITION.—Not 
later than 10 days after any insurer-affiliated party has 
been suspended from office or prohibited from participa-
tion in the conduct of the affairs of a national insurer or 
national agency by a temporary order issued under sub-
section (b), such party may apply to the United States 
district court for the judicial district in which the main 
office of the national insurer or national agency is located, 
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