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‘‘(2) RECOVERY OF COSTS.—Such an associa-
tion may charge persons making inquiries, other 
than individual investors, reasonable fees for re-
sponses to such inquiries. 
‘‘(3) PROCESS FOR DISPUTED INFORMATION.— 
Such an association shall adopt rules establishing an 
administrative process for disputing the accuracy of 
information provided in response to inquiries under 
this subsection in consultation with any registered 
national securities exchange providing information 
pursuant to paragraph (1)(B)(ii). 
‘‘(4) LIMITATION OF LIABILITY.—Such an asso-
ciation, or an exchange reporting information to 
such an association, shall not have any liability to 
any person for any actions taken or omitted in good 
faith under this subsection. 
‘‘(5) DEFINITION.—For purposes of this sub-
section, the term ‘registration information’ means 
the information reported in connection with the reg-
istration or licensing of brokers and dealers and 
their associated persons, including disciplinary ac-
tions, regulatory, judicial, and arbitration pro-
ceedings, and other information required by law, or 
exchange or association rule, and the source and sta-
tus of such information.’’.
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SEC. 5. FILING DEPOSITORIES FOR INVESTMENT ADVIS-
ERS. 
(a) AMENDMENT.—Section 204 of the Investment 
Advisers Act of 1940 (15 U.S.C. 80b-4) is amended— 
(1) by striking ‘‘Every investment’’ and insert-
ing the following: 
‘‘(a) IN GENERAL.—Every investment’’; and 
(2) by adding at the end the following: 
‘‘(b) FILING DEPOSITORIES.—The Commission may, 
by rule, require an investment adviser— 
‘‘(1) to file with the Commission any fee, appli-
cation, report, or notice required to be filed by this 
title or the rules issued under this title through any 
entity designated by the Commission for that pur-
pose; and 
‘‘(2) to pay the reasonable costs associated with 
such filing and the establishment and maintenance 
of the systems required by subsection (c). 
‘‘(c) ACCESS TO DISCIPLINARY AND OTHER INFOR-
MATION.— 
‘‘(1) MAINTENANCE OF SYSTEM TO RESPOND 
TO INQUIRIES.—The Commission shall require the 
entity designated by the Commission under sub-
section (b)(1) to establish and maintain a toll-free 
telephone listing, or a readily accessible electronic or 
other process, to receive and promptly respond to in-
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quiries regarding registration information (including 
disciplinary actions, regulatory, judicial, and arbitra-
tion proceedings, and other information required by 
law or rule to be reported) involving investment ad-
visers and persons associated with investment advis-
ers. 
‘‘(2) RECOVERY
OF
COSTS.—An entity des-
ignated by the Commission under subsection (b)(1) 
may charge persons making inquiries, other than in-
dividual investors, reasonable fees for responses to 
inquiries made under paragraph (1). 
‘‘(3) LIMITATION
ON
LIABILITY.—An entity 
designated by the Commission under subsection 
(b)(1) shall not have any liability to any person for 
any actions taken or omitted in good faith under 
this subsection.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 203A of the Investment Advisers 
Act of 1940 (15 U.S.C. 80b–3a) is amended— 
(A) by striking subsection (d); and 
(B) by redesignating subsection (e) as sub-
section (d). 
(2) Section 306 of the National Securities Mar-
kets Improvement Act of 1996 (15 U.S.C. 80b–10,
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note; Public Law 104–290; 110 Stat. 3439) is re-
pealed. 
SEC. 6. STATE INSURANCE JURISDICTION ON MILITARY IN-
STALLATIONS. 
(a) CLARIFICATION
OF JURISDICTION.—Any law, 
regulation, or order of a State with respect to regulating 
the business of insurance shall apply to insurance activi-
ties conducted on Federal land or facilities in the United 
States and abroad, including military installations, except 
to the extent that such law, regulation, or order— 
(1) directly conflicts with any applicable Fed-
eral law, regulation, or authorized directive; or 
(2) would not apply if such activity were con-
ducted on State land. 
(b) PRIMARY STATE JURISDICTION.—To the extent 
that multiple State laws would otherwise apply pursuant 
to subsection (a) to an insurance activity of an individual 
or entity on Federal land or facilities, the State having 
the primary duty to regulate such activity and whose laws 
shall apply to such activity in the case of a conflict shall 
be— 
(1) the State within which the Federal land or 
facility is located; or 
(2) if the Federal land or facility is located out-
side of the United States, the State in which—
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(A) in the case of an individual engaged in 
the business of insurance, such individual has 
been issued a resident license; or 
(B) in the case of an entity engaged in the 
business of insurance, such entity is domiciled. 
SEC. 7. REQUIRED DEVELOPMENT OF MILITARY PER-
SONNEL PROTECTION STANDARDS REGARD-
ING INSURANCE SALES. 
(a) STATE
STANDARDS.—The Congress intends 
that— 
(1) the States collectively work with the Sec-
retary of Defense to ensure implementation of ap-
propriate standards to protect members of the 
Armed Forces from dishonest and predatory insur-
ance sales practices while on a military installation 
of the United States (including installations located 
outside of the United States); and 
(2) each State identify its role in promoting the 
standards described in paragraph (1) in a uniform 
manner within 12 months after the date of the en-
actment of this Act. 
(b) STATE REPORT.—It is the sense of the Congress 
that the NAIC should, after consultation with the Sec-
retary of Defense and within 12 months after the date 
of the enactment of this Act, conduct a study to determine
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the extent to which the States have met the requirement 
of subsection (a) and report such study to the Committee 
on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs 
of the Senate. 
SEC. 8. REQUIRED DISCLOSURES REGARDING LIFE INSUR-
ANCE. 
(a) REQUIREMENT.—Except as provided in sub-
section (d), no insurer or producer may sell or solicit, in 
person, any life insurance product to any member of the 
Armed Forces on a military installation of the United 
States unless a disclosure in accordance with this section 
is provided to such member before the sale of such insur-
ance. 
(b) DISCLOSURE.—A disclosure in accordance with 
this section is a written disclosure that— 
(1) states that subsidized life insurance may be 
available to the member of the Armed Forces from 
the Federal Government; 
(2) states that the United States Government 
has in no way sanctioned, recommended, or encour-
aged the sale of the product being offered; 
(3) is made in plain and readily understandable 
language and in a type font at least as large as the 
font used for the majority of the policy; and
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(4) with respect to a sale or solicitation on Fed-
eral land or facilities located outside of the United 
States by an individual or entity engaged in the 
business of insurance, except to the extent otherwise 
specifically provided by the laws of such State in ref-
erence to this Act, lists the address and phone num-
ber where consumer complaints are received by the 
State insurance commissioner for the State in which 
the individual has been issued a resident license or 
the entity is domiciled, as applicable. 
(c) ENFORCEMENT.—If it is determined by a State 
or Federal agency, or in a final court proceeding, that any 
individual or entity has intentionally failed to provide a 
disclosure required by this section, such individual or enti-
ty shall be prohibited from further engaging in the busi-
ness of insurance with respect to employees of the Federal 
Government on Federal land, except— 
(1) with respect to existing policies; and 
(2) to the extent required by the Federal Gov-
ernment pursuant to previous commitments. 
(d) EXCEPTIONS.— 
(1) FEDERAL AND STATE INSURANCE ACTIV-
ITY.—This section shall not apply to insurance ac-
tivities—
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(A) specifically contracted by or through 
the Federal Government or any State govern-
ment; or 
(B) specifically exempted from the applica-
bility of this Act by a Federal or State law, reg-
ulation, or order that specifically refers to this 
paragraph. 
(2) UNIFORM STATE STANDARDS.—If a major-
ity of the States have adopted, in materially iden-
tical form, a standard setting forth the disclosures 
required under this section that apply to insurance 
solicitations and sales to military personnel on mili-
tary installations of the United States, after the ex-
piration of the 2-year period beginning on such ma-
jority adoption, such standard shall apply in lieu of 
the requirements of this section to all insurance so-
licitations and sales to military personnel on military 
installations, with respect to such States, to the ex-
tent that such standards do not directly conflict with 
any applicable authorized Federal regulation or di-
rective. 
(3) MATERIALLY IDENTICAL FORM.—For pur-
poses of this subsection, standards adopted by more 
than one State shall be considered to have materially 
identical form to the extent that such standards re-
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quire or prohibit identical conduct with respect to 
the same activity, notwithstanding that the stand-
ards may differ with respect to conduct required or 
prohibited with respect to other activities. 
SEC. 9. IMPROVING LIFE INSURANCE PRODUCT STAND-
ARDS. 
(a) IN GENERAL.—It is the sense of the Congress 
that the NAIC should, after consultation with the Sec-
retary of Defense and within 12 months after the date 
of the enactment of this Act, conduct a study and submit 
a report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate on ways of im-
proving the quality of and sale of life insurance products 
sold by insurers and producers on military installations 
of the United States, which may include limiting sales au-
thority to companies and producers that are certified as 
meeting appropriate best practices procedures or creating 
standards for products specifically designed for members 
of the Armed Forces regardless of the sales location. 
(b) CONDITIONAL GAO REPORT.—If the NAIC does 
not submit the report to the committees as described in 
subsection (a), the Comptroller General of the United 
States shall study any proposals that have been made to 
improve the quality and sale of life insurance products sold
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by insurers and producers on military installations of the 
United States and report to the Committee on Financial 
Services of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate on such proposals within 6 months after the expi-
ration of the period referred to in subsection (a). 
SEC. 10. REQUIRED REPORTING OF DISCIPLINED INSUR-
ANCE AGENTS. 
(a) REPORTING BY INSURERS.—After the expiration 
of the 2-year period beginning on the date of the enact-
ment of this Act, no insurer may enter into or renew a 
contractual relationship with a producer that solicits or 
sells life insurance on military installations of the United 
States unless the insurer has implemented a system to re-
port, to the State insurance commissioner of the State of 
the domicile of the insurer and the State of residence of 
the insurance producer, disciplinary actions taken against 
the producer with respect to the producer’s sales or solici-
tation of insurance on a military installation of the United 
States, as follows: 
(1) Any disciplinary action taken by any gov-
ernment entity that the insurer knows has been 
taken. 
(2) Any significant disciplinary action taken by 
the insurer.
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(b) REPORTING BY STATES.—It is the sense of the 
Congress that within 2 years after the date of the enact-
ment of this Act, the States should collectively implement 
a system to— 
(1) receive reports of disciplinary actions taken 
against insurance producers by insurers or govern-
ment entities with respect to the producers’ sale or 
solicitation of insurance on a military installation; 
and 
(2) disseminate such information to all other 
States and to the Secretary of Defense. 
SEC. 11. REPORTING BARRED PERSONS SELLING INSUR-
ANCE OR SECURITIES. 
(a) ESTABLISHMENT.—The Secretary of Defense 
shall maintain a list of the name, address, and other ap-
propriate information of persons engaged in the business 
of securities or insurance that have been barred, banned, 
or otherwise limited in any manner that is not generally 
applicable to all such type of persons, from any or all mili-
tary installations of the United States. 
(b) NOTICE AND ACCESS.—The Secretary shall en-
sure that— 
(1) the appropriate Federal and State agencies 
responsible for securities and insurance regulation
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are promptly notified upon the inclusion or removal 
of a person under such agencies’ jurisdiction; and 
(2) the list is kept current and easily acces-
sible— 
(A) for use by such agencies; and 
(B) for purposes of enforcing or consid-
ering any such bar, ban, or limitation by the 
appropriate Federal personnel, including com-
manders of military installations. 
(c) REGULATIONS.— 
(1) IN
GENERAL.—The Secretary shall issue 
regulations in accordance with this subsection to 
provide for the establishment and maintenance of 
the list under this section, including appropriate due 
process considerations. 
(2) TIMING.— 
(A) PROPOSED REGULATIONS.—Not later 
than the expiration of the 60-day period begin-
ning on the date of the enactment of this Act, 
the Secretary shall prepare and submit to the 
appropriate Committees a copy of the regula-
tions under this subsection that are proposed to 
be published for comment. The Secretary may 
not publish such regulations for comment in the 
Federal Register until the expiration of the 15-