‘‘(3) To establish procedures for providing no-
tice and opportunity for comment pursuant to sec-
tion 326(a). 
‘‘(4) To enter into and perform such agree-
ments as necessary to carry out its duties. 
‘‘(5) To hire employees, professionals or special-
ists, and elect or appoint officers, and to fix their 
compensation, define their duties and give them ap-
propriate authority to carry out the purposes of this 
subtitle, and determine their qualification; and to es-
tablish the Association’s personnel policies and pro-
grams relating to, among other things, conflicts of 
interest, rates of compensation, and qualifications of 
personnel. 
‘‘(6) To borrow money. 
‘‘(7) To secure funding for such amounts as the 
Association determines to be necessary and appro-
priate to organize and begin operations of the Asso-
ciation, which shall be treated as loans to be repaid 
by the Association with interest at market rate, ex-
cept that the Board shall not secure funding from 
an insurer, insurance producer, or insurance associa-
tion, but may secure funding from the NAIC. 
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‘‘SEC. 328. REPORT BY ASSOCIATION. 
‘‘(a) IN GENERAL.—As soon as practicable after the 
close of each fiscal year, the Association shall submit to 
the President and the NAIC a written report regarding 
the conduct of its business, and the exercise of the other 
rights and powers granted by this subtitle, during such 
fiscal year. 
‘‘(b) FINANCIAL STATEMENTS.—Each report sub-
mitted under subsection (a) with respect to any fiscal year 
shall include financial statements setting forth the finan-
cial position of the Association at the end of such fiscal 
year and the results of its operations (including the source 
and application of its funds) for such fiscal year. 
‘‘SEC. 329. LIABILITY OF THE ASSOCIATION AND THE DI-
RECTORS, OFFICERS, AND EMPLOYEES OF 
THE ASSOCIATION. 
‘‘(a) IN GENERAL.—The Association shall not be 
deemed to be an insurer or insurance producer within the 
meaning of any State law, rule, regulation, or order regu-
lating or taxing insurers, insurance producers, or other en-
tities engaged in the business of insurance, including pro-
visions imposing premium taxes, regulating insurer sol-
vency or financial condition, establishing guaranty funds 
and levying assessments, or requiring claims settlement 
practices. 
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‘‘(b) LIABILITY OF DIRECTORS, OFFICERS, AND EM-
PLOYEES.—No director, officer, or employee of the Asso-
ciation shall be personally liable to any person for any ac-
tion taken or omitted in good faith in any matter within 
the scope of their responsibilities in connection with the 
Association. 
‘‘SEC. 330. PRESIDENTIAL OVERSIGHT. 
‘‘(a) REMOVAL OF BOARD.—If the President deter-
mines that the Association is acting in a manner contrary 
to the interests of the public or the purposes of this sub-
title or has failed to perform its duties under this subtitle, 
the President may remove the entire existing Board for 
the remainder of the term to which the members of the 
Board were appointed and appoint, in accordance with 
section 324 and with the advice and consent of the Senate, 
new members to fill the vacancies on the Board for the 
remainder of such terms. 
‘‘(b) REMOVAL OF BOARD MEMBER.—The President 
may remove a member of the Board only for neglect of 
duty or malfeasance in office. 
‘‘(c) SUSPENSION
OF RULES
OR ACTIONS.—Fol-
lowing notice to the Board, the President, or a person des-
ignated by the President for such purpose, may suspend 
the effectiveness of any rule, or prohibit any action, of the 
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Association which the President or the designee deter-
mines is contrary to the purposes of this subtitle. 
‘‘SEC. 331. RELATIONSHIP TO STATE LAW. 
‘‘(a) PREEMPTION
OF STATE LAWS.—State laws, 
regulations, provisions, or other actions purporting to reg-
ulate insurance producers shall be preempted to the extent 
provided in subsection (b). 
‘‘(b) PROHIBITED ACTIONS.— 
‘‘(1) IN GENERAL.—No State shall— 
‘‘(A) impede the activities of, take any ac-
tion against, or apply any provision of law or 
regulation arbitrarily or discriminatorily to, any 
insurance producer because that insurance pro-
ducer or any affiliate plans to become, has ap-
plied to become, or is a member of the Associa-
tion; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it pay fees different 
from those required to be paid to that State 
were it not a member of the Association; or 
‘‘(C) impose any continuing education re-
quirements on any nonresident insurance pro-
ducer that is a member of the Association. 
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‘‘(2) STATES OTHER THAN A HOME STATE.— 
No State, other than a member’s home State, 
shall— 
‘‘(A) impose any licensing, personal or cor-
porate qualifications, education, training, expe-
rience, residency, continuing education, or 
bonding requirement upon a member of the As-
sociation that is different from the criteria for 
membership in the Association or renewal of 
such membership; 
‘‘(B) impose any requirement upon a mem-
ber of the Association that it be licensed, reg-
istered, or otherwise qualified to do business or 
remain in good standing in such State, includ-
ing any requirement that such insurance pro-
ducer register as a foreign company with the 
secretary of state or equivalent State official; 
‘‘(C) require that a member of the Associa-
tion submit to a criminal history record check 
as a condition of doing business in such State; 
or 
‘‘(D) impose any licensing, registration, or 
appointment requirements upon a member of 
the Association, or require a member of the As-
sociation to be authorized to operate as an in-
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