background record check for purposes of sub-
paragraph (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 
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-
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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— 
‘‘(i) for purposes of determining com-
pliance with membership criteria estab-
lished by the Association; and/or 
‘‘(ii) to disclose to State insurance 
regulators, or Federal or State law en-
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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 
for using information provided under subpara-
graph (E) as permitted under subparagraph 
(F) in good faith and in reasonable reliance on 
its accuracy. 
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‘‘(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 
‘‘(ii) procedures providing a reason-
able opportunity for a producer to contest 
the accuracy of information regarding the 
producer provided under subparagraph 
(E). 
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‘‘(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), or where the insurance pro-
ducer has been subject to disciplinary ac-
tion, as described in paragraph (2). 
‘‘(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. 
‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI-
TERIA.—The Association may establish membership cri-
teria that bear a reasonable relationship to the purposes 
for which the Association was established. 
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‘‘(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) BUSINESS
ENTITIES.—The Association 
shall establish a class of membership and member-
ship criteria for business entities. A business entity 
that applies for membership shall be required to des-
ignate an individual Association member responsible 
for the business entity’s compliance with Association 
rules and the insurance laws, rules, and regulations 
of any State in which the business entity seeks to do 
business on the basis of Association membership. 
‘‘(3) 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. The Association shall not 
establish criteria that unfairly limit the ability of a 
small insurance producer to become a member of the 
Association, including imposing discriminatory mem-
bership fees. 
‘‘(2) QUALIFICATIONS.—In establishing criteria 
under paragraph (1), the Association shall not adopt 
any qualification less protective to the public than 
that contained in the NAIC Producer Licensing 
Model Act in effect as of the date of enactment of 
the National Association of Registered Agents and 
Brokers Reform Act of 2013, and shall consider the 
highest levels of insurance producer qualifications 
established under the licensing laws of the States. 
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‘‘(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-
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, or negotiate 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-
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ing claims adjustments and settlement to the 
extent permissible under such State’s laws, 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 for purposes of author-
izing the producer to engage in the activities 
described in subparagraph (A) in any State 
where the member pays the licensing fee; and 
‘‘(C) be the equivalent of a nonresident in-
surance producer license for the purpose of sub-
jecting an insurance producer to all laws, regu-
lations, provisions or other action of any State 
concerning revocation, suspension, or other en-
forcement action related to a member’s ability 
to engage in any activity within the scope of au-
thority granted under this subsection and to all 
State laws, regulations, provisions and actions 
preserved under paragraph (5). 
‘‘(2) VIOLENT CRIME CONTROL AND LAW EN-
FORCEMENT ACT OF 1994.—Nothing in this subtitle 
shall be construed to alter, modify, or supercede any 
requirement established by section 1033 of title 18, 
United States Code. 
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‘‘(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.— 
‘‘(A) IN GENERAL.—The Association shall 
notify the States and the National Association 
of Insurance Commissioners or its designee 
when a producer has satisfied the membership 
criteria of this section. The States and the Na-
tional Association of Insurance Commissioners 
or its designee shall have 10 business days after 
such notification to provide the Association with 
evidence that the producer does not satisfy the 
criteria for membership for the Association’s 
consideration in its final membership deter-
mination. 
‘‘(B) ONGOING DISCLOSURES REQUIRED.— 
On an ongoing basis, the Association shall dis-
close to the States and the National Association 
of Insurance Commissioners or its designee the 
States in which each member is authorized to 
operate. The Association shall immediately no-
tify the States and the National Association of 
Insurance Commissioners or its designee when 
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a member is newly authorized to operate in one 
or more States, or is no longer authorized to 
operate in one or more States on the basis of 
Association membership. 
‘‘(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 applicability or continuing effec-
tiveness of any law, regulation, provision, or other 
action of any State, including any law, regulation, 
provision, or other action that— 
‘‘(A) regulates market conduct, producer 
conduct, or unfair trade practices; 
‘‘(B) establishes consumer protections; or 
‘‘(C) requires insurance producers to be 
appointed by a licensed or authorized insurer, 
to the extent that such law, regulation, provision, or 
other action is not inconsistent with the provisions 
of this subtitle related to market entry for non-
resident insurance producers, 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.— 
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‘‘(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 
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, or 
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assess monetary fines or penalties, as the Associa-
tion determines to be appropriate, if— 
‘‘(A) the producer fails to meet the appli-
cable membership criteria or other rules of the 
Association; 
‘‘(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; 
‘‘(C) an insurance license held by the pro-
ducer has been suspended or revoked by a State 
insurance regulator; or 
‘‘(D) the producer has been convicted of a 
crime that would have resulted in the denial of 
membership pursuant to subsection (a)(4)(M)(i) 
at the time of application and the Association 
has received a copy of the final disposition from 
a court of competent jurisdiction. 
‘‘(2) VIOLATIONS
OF
ASSOCIATION
RULES.— 
The Association shall have the power to investigate 
alleged violations of Association rules. 
‘‘(3) REPORTING.—The Association shall imme-
diately notify the NAIC or its designee when a pro-
ducer’s membership has been placed on probation or 
has been suspended, revoked, or otherwise termi-
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nated, or when the Association has assessed mone-
tary fines or penalties. 
‘‘(i) CONSUMER COMPLAINTS.— 
‘‘(1) IN GENERAL.—The Association shall— 
‘‘(A) refer any complaint against a mem-
ber of the Association from a consumer relating 
to alleged misconduct or violations of State in-
surance laws to the State insurance regulator 
where the consumer resides and, when appro-
priate, to any additional State insurance regu-
lator, as determined by rules adopted by the 
Association; and 
‘‘(B) make any related records and infor-
mation available to the NAIC or its designee 
and to each State insurance regulator to whom 
the complaint is forwarded. 
‘‘(2) TELEPHONE
AND
OTHER
ACCESS.—The 
Association shall maintain a toll-free number for 
purposes of this subsection and, as practicable, other 
alternative means of communication with consumers, 
such as an Internet webpage. 
‘‘(3) FINAL DISPOSITION OF INVESTIGATION.— 
State insurance regulators shall provide the Associa-
tion with information regarding the final disposition 
of a complaint referred pursuant to paragraph 
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(1)(A), but nothing shall be construed to compel a 
State to release confidential investigation reports or 
other information protected by State law to the As-
sociation. 
‘‘(j) INFORMATION SHARING.—The Association may 
share documents, materials, or other information, includ-
ing confidential and privileged documents, with a State, 
Federal, or international regulatory agency or enforce-
ment authority, or with the NAIC or its designee, provided 
that the recipient has the authority and agrees to maintain 
the confidentiality or privileged status of the document, 
material, or other information. 
‘‘SEC. 324. BOARD OF DIRECTORS. 
‘‘(a) ESTABLISHMENT.—There is established the 
board of directors of the Association (hereafter in this sub-
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 
13 members who shall be appointed by the Presi-
dent, by and with the advice and consent of the Sen-
ate, of whom— 
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‘‘(A) 8 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 
(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 a list of recommendations 
within 15 business days of the request, the 
President may make the requisite appointments 
without considering the views of the NAIC. 
‘‘(B) Not more than 4 members appointed 
to membership on the Board pursuant to sub-
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paragraph (A) of paragraph (1) shall belong to 
the same political party. 
‘‘(C) If fewer than 8 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, 
insurance producer, or other entity in the insur-
ance industry other than direct or indirect own-
ership of, or beneficial interest in, an insurance 
policy or annuity contract written or sold by an 
insurer. 
‘‘(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 
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‘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) 4 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 
‘‘(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 
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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) INITIAL APPOINTMENTS.—The appointment of 
initial Board members shall be made no later than 90 days 
after the date of enactment of the National Association 
of Registered Agents and Brokers Reform Act of 2013. 
‘‘(f) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet at 
the call of the chairperson, as requested in writing 
to the chairperson by at least 5 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. 
‘‘(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. 
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‘‘(4) INITIAL MEETING.—The Board shall hold 
its first meeting not later than 45 days after the 
date on which all initial members of the Board have 
been appointed. 
‘‘(g) RESTRICTION
ON CONFIDENTIAL INFORMA-
TION.—Members of the Board appointed pursuant to 
paragraph (3) of subsection (c) shall not have access to 
confidential information received by the Association in 
connection with complaints, investigations, or disciplinary 
proceedings involving insurance producers. 
‘‘(h) ETHICS AND CONFLICTS OF INTEREST.—The 
Board shall issue and enforce an ethical conduct code to 
address permissible and prohibited activities of Board 
members and Association officers, employees, agents, or 
consultants. The code shall, at a minimum, include provi-
sions that prohibit any Board member or Association offi-
cer, employee, agent or consultant from— 
‘‘(1) engaging in unethical conduct in the 
course of performing Association duties; 
‘‘(2) participating in the making or influencing 
the making of any Association decision, the outcome 
of which he or she knows or had reason to know 
would have a reasonably foreseeable material finan-
cial effect, distinguishable from its effect on the pub-
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licly generally, on the person or a member of his or 
her immediate family; 
‘‘(3) accepting any gift from any person or enti-
ty other than the Association that is given because 
of the position held by the person in the Association; 
‘‘(4) making political contributions to any per-
son or entity on behalf of the Association; and 
‘‘(5) lobbying or paying someone to lobby on be-
half of the Association. 
‘‘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 AND 
RULES.— 
‘‘(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 
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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. Rules shall be promulgated in accordance 
with the Federal Administrative Procedure Act. 
‘‘(2) EFFECTIVE DATE.—Any proposed bylaw 
or rule or proposed amendment to the bylaws or 
rules shall take effect, after notice published in the 
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 or to de-
termine whether a member of the Association should 
be placed on probation (in this section referred to as 
a ‘disciplinary action’) or whether to assess fines or 
monetary penalties, the Association shall bring spe-
cific 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— 
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‘‘(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. 
‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REP-
RESENTATIVES.—Members of the Board appointed 
pursuant to section 324(c)(3) shall not participate in 
any disciplinary action, and shall not have access to 
confidential information concerning such actions. 
‘‘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. 
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