(i) a crime involving dishonesty or 
breach of trust which is punishable by im-
prisonment for a term exceeding 1 year 
under Federal or State law; or 
(ii) a criminal violation of section 
1956, 1957, or 1960 of title 18, United 
States Code, or section 5322 or 5324 of 
title 31, United States Code. 
(2) EFFECTIVE PERIOD.—A suspension or pro-
hibition under paragraph (1) shall remain in effect 
until the information, indictment, or complaint re-
ferred to in paragraph (1)(B) is resolved or other-
wise terminated by the Commissioner. 
(b) REMOVAL OR PROHIBITION.— 
(1) IN GENERAL.—If a judgment of conviction 
or an agreement to enter a pretrial diversion or 
other similar program is entered against an insurer- 
affiliated party in connection with a crime described 
in subsection (a)(1)(B)(i), the Commissioner may 
issue and serve upon such party and the national in-
surer or national agency an order removing such 
party from office or prohibiting such party from fur-
ther participation in any manner in the conduct of 
the affairs of the national insurer or national agency 
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bajohnson on PROD1PC69 with BILLS
without the prior written consent of the Commis-
sioner if— 
(A) such judgment is not subject to further 
appellate review; and 
(B) continued service or participation by 
such party may pose a threat to the national in-
surer or the interests of the policyholders of the 
national insurer or a national agency or the pol-
icyholders serviced by such agency. 
(2) REQUIRED
FOR
CERTAIN
OFFENSES.—In 
the case of a judgment of conviction or agreement 
against an insurer-affiliated party in connection with 
a violation described in subsection (a)(1)(B)(ii), the 
Commissioner shall issue and serve upon such party 
and the national insurer or national agency an order 
removing 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 without the prior written consent of 
the Commissioner. 
(3) EFFECT ON DIRECTOR OR OFFICER.—An 
insurer-affiliated party who is a director or officer 
and who is subject to an order under this subsection, 
shall cease to be a director or officer of such na-
tional insurer or national agency. 
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(4) EFFECT OF ACQUITTAL.—A finding of not 
guilty or other disposition of the charge shall not 
preclude the Commissioner from instituting pro-
ceedings after such finding or disposition to remove 
such party from office or to prohibit further partici-
pation in national insurer or national agency affairs 
under subsection (a) or (b) of section 1145. 
(5) EFFECTIVE PERIOD.—A notice of suspen-
sion or order of removal issued under this subsection 
shall remain effective and outstanding until the com-
pletion of any hearing or appeal under subsection (c) 
or unless the suspension or order of removal is oth-
erwise terminated by the Commissioner. 
(c) ADMINISTRATIVE HEARING.— 
(1) REQUEST.—Not later than 30 days after 
the date on which a notice of suspension or order of 
removal is received by an insurer-affiliated party 
under this subsection, such party may submit a writ-
ten request to the Commissioner for an opportunity 
to appear before the Commissioner to show that the 
continued service to, or participation in, the conduct 
of the affairs of the national insurer or national 
agency by such party will not pose a threat to the 
national insurer or to the interests of its policy-
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bajohnson on PROD1PC69 with BILLS
holders or to a national agency or the policyholders 
serviced by such Agency. 
(2) TIME AND PLACE.—Upon receipt of a re-
quest under paragraph (1), the Commissioner shall 
set a time and place at which the requesting party 
may appear, personally or through counsel, before 1 
or more designated employees of the Commissioner 
to submit written materials or, at the discretion of 
the Commissioner, oral testimony, and oral argu-
ment. A hearing under this subsection shall take 
place not later than 30 days after the receipt of a 
request under paragraph (1), unless extended at the 
request of the party. 
(3) NOTIFICATION
OF
DECISION.—Not later 
than 60 days after a hearing under this subsection, 
the Commissioner shall provide written notification 
to the insurer-affiliated party that indicates— 
(A) whether the suspension or prohibition 
from participation in any manner in the con-
duct of the affairs of the national insurer or na-
tional agency will be continued, terminated, or 
otherwise modified; 
(B) whether the order removing such party 
from office or prohibiting such party from fur-
ther participation in any manner in the conduct 
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bajohnson on PROD1PC69 with BILLS
of the affairs of the national insurer or national 
agency will be rescinded or otherwise modified; 
and 
(C) the basis for any decision by the Com-
missioner that is adverse to such party. 
SEC. 1147. ANCILLARY PROVISIONS. 
(a) POWERS RELATED TO HEARINGS.—In the course 
of or in connection with any proceeding or other action 
under this subtitle, the Commissioner, and any person des-
ignated to conduct any hearing under this section, may— 
(1) administer oaths and affirmations; 
(2) take depositions or cause depositions to be 
taken; and 
(3) issue, revoke, quash, or modify subpoenas 
and subpoenas duces tecum. 
(b) SUBPOENA POWER.— 
(1) IN GENERAL.—The Commissioner, or des-
ignee of the Commissioner, may require the attend-
ance of witnesses and the production of documents 
provided for in this section from any place in any 
State or other place subject to the jurisdiction of the 
United States at any designated place where such 
proceeding or other action is being conducted. 
(2) ENFORCEMENT.—The Commissioner or any 
party to proceedings under this section may apply 
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bajohnson on PROD1PC69 with BILLS
for the enforcement of any subpoena or subpoena 
duces tecum issued under this section to— 
(A) the United States District Court for 
the District of Columbia; or 
(B) the United States district court for the 
judicial district in which— 
(i) such proceeding or other action is 
being conducted; or 
(ii) the witness resides or conducts 
business. 
(3) JURISDICTION.—The courts described under 
paragraph (2) shall have jurisdiction and power to 
order and require compliance with any subpoena or 
subpoena duces tecum issued under this section. 
(4) FEES AND MILEAGE.—Any witness subpoe-
naed under this subsection shall be paid the same 
fees and mileage that are paid witnesses in the dis-
trict courts of the United States. 
(5) PENALTY FOR NONCOMPLIANCE.—Any per-
son who willfully fails or refuses to attend and tes-
tify or to answer any lawful inquiry or to produce 
books, papers, correspondence, memoranda, con-
tracts, agreements, or other records, if in such per-
son’s power so to do, in obedience to the subpoena 
of the Commissioner, shall be guilty of a mis-
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demeanor and, upon conviction, shall be subject to 
a fine of not more than $1,000 or to imprisonment 
for a term of not more than 1 year or both. 
(c) EXPENSES AND ATTORNEY FEES.— 
(1) IN GENERAL.—Any court having jurisdic-
tion of any proceeding or other action instituted 
under this section by a national insurer or national 
agency, a federally licensed insurance producer, or 
an insurer-affiliated party may allow any such in-
surer, agency, producer, or party to receive such rea-
sonable expenses and attorney fees, as it determines 
to be just and proper. 
(2) PAYMENT OF EXPENSES AND FEES.—Ex-
penses and fees awarded under paragraph (1) shall 
be paid by the national insurer or national agency, 
the federally licensed insurance producer, or the in-
surer-affiliated party from the assets of such in-
surer, agency, producer, or party. 
(d) RULEMAKING.—The Commissioner may promul-
gate such regulations as may be necessary with respect 
to any proceedings, claims, examinations, investigations, 
or other actions authorized by this subtitle. 
(e) EFFECT ON BOARD OF DIRECTORS.— 
(1) LACK OF QUORUM.—If the suspension of 1 
or more directors under this subtitle reduces the 
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board of directors of a national insurer or national 
agency below a quorum, all powers and functions 
vested in or exercisable by such board shall vest in, 
and be exercisable by, the director or directors on 
the board not so suspended, until a quorum is rees-
tablished. 
(2) TEMPORARY APPOINTMENTS.—If all of the 
directors of a national insurer or national agency are 
suspended under this subtitle, the Commissioner 
shall appoint persons to serve temporarily as direc-
tors in their place until the earlier of the date on 
which— 
(A) the suspensions are terminated; or 
(B) the suspended directors are replaced 
on the board of directors of the national insurer 
or national agency. 
(f) NOTICE AFTER SEPARATION FROM SERVICE.— 
The resignation, termination of employment or participa-
tion, or separation of an insurer-affiliated party (including 
a separation caused by the closing of a national insurer 
or national agency) shall not affect the jurisdiction and 
authority of the Commissioner to issue any notice against 
any such party under this subtitle if such notice is served 
before the end of the 6-year period beginning on the date 
on which such party ceased to be an insurer-affiliated 
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100 
party with respect to such national insurer or national 
agency. 
SEC. 1148. HEARINGS AND JUDICIAL REVIEW OF SUSPEN-
SION, REMOVAL, OR PROHIBITION ORDER. 
(a) JUDICIAL HEARING.— 
(1) IN GENERAL.—A hearing under this subtitle 
(except for a hearing under section 1146(c))— 
(A) shall be conducted in accordance with 
the provisions of chapter 5 of title 5, United 
States Code; and 
(B) shall be held in the Federal judicial 
district in which the main office of the national 
insurer or national agency is located or in 
which the federally licensed insurance producer 
or the insurer-affiliated party is located, unless 
the party afforded the hearing consents to an-
other place. 
(2) JUDGMENT.—After a hearing under this 
subsection and not later than 90 days after the 
Commissioner has notified the parties that the case 
has been submitted to the Commissioner for final 
decision, the Commissioner shall— 
(A) render a decision; 
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