(2) DEFAULT LAW.—If the parties to an insur-
ance policy or other product of a national life in-
surer have not specified the jurisdiction whose law 
shall govern the provisions of the insurance policy or 
other product, such provisions shall be interpreted in 
accordance with the law of the jurisdiction in which 
the insurance policy or other product is delivered. 
(3) RULEMAKING.—The Commissioner shall es-
tablish, by regulation, choice of law rules under this 
subsection. 
(d) INTERPRETIVE RULINGS.— 
(1) PROCEDURES.—The Commissioner shall es-
tablish procedures by which national insurers may 
obtain interpretive rulings from the Office regarding 
the interpretation and application of the require-
ments established under this section. 
(2) PUBLIC AVAILABILITY.—Except as provided 
under paragraph (3), requests by national insurers 
for interpretive rulings from the Office and the com-
plete text of such interpretive rulings shall not be 
made available to the public. 
(3) PUBLICATION
OF
SUMMARIES.—Notwith-
standing paragraph (2), the Commissioner shall pub-
lish a summary of each interpretive opinion, exclud-
ing the name of the national insurer and any other 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00084
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
identifying information, either promptly after the 
issuance of such opinion or, upon the request of the 
national insurer, after such delay as the Commis-
sioner determines appropriate. 
(e) RATES, RATING ELEMENTS, AND PRICE.—The 
Commissioner may not require a national insurer to use 
any particular rate, rating element, or price. 
SEC. 313. MARKET CONDUCT STANDARDS. 
(a) STANDARDS.—The Commissioner shall establish, 
by regulation, market conduct standards for national in-
surers, national insurance agencies, and national insur-
ance producers that implement the model laws of the 
NAIC entitled ‘‘Unfair Trade Practices Act’’ and ‘‘Unfair 
Claims Settlement Practices Act’’. 
(b) DISCLOSURE.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Commissioner shall require each policy issued by 
a national insurer to include the following disclosure 
on the cover page: 
‘‘This policy has been issued by a national in-
surer, which is supervised by the Office of National 
Insurance. If you have any questions or complaints 
about this policy, you may contact the Division of 
Consumer Affairs, Office of National Insurance, 
llll.’’. 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00085
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
(2) ADDRESS.—The disclosure required under 
paragraph (1) shall, in place of the blank at the end, 
include the appropriate address, toll-free number, 
and Internet address of the Division of Consumer 
Affairs for the office of the Division located in the 
State in which the policyholder resides. 
SEC. 314. GENERAL PRINCIPLES. 
(a) GENERAL PRINCIPLES.—The financial, policy, 
and market conduct standards issued by the Commis-
sioner pursuant to this subtitle shall— 
(1) promote the stability and integrity of na-
tional insurers and national insurance agencies; 
(2) protect policyholders and other consumers 
and investors; and 
(3) encourage innovation and competition by 
national insurers and national insurance agencies. 
(b) NAIC STANDARDS.—In establishing the finan-
cial, policy, and market conduct standards required by this 
subtitle, the Commissioner shall take into consideration 
standards, models, practices, and instructions established 
by the NAIC. 
Subtitle C—State Taxation 
SEC. 321. STATE TAXATION OF NATIONAL INSURERS. 
(a) STATE TAXATION RULE.—Except as provided in 
subsection (b) and section 605(b), a national insurer doing 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00086
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
business in any State shall be subject to all applicable 
State and local taxes, assessments, and charges, including 
insurance retaliatory taxes or other similar taxes, and 
shall be entitled to all applicable tax credits, deductions, 
and offsets provided under State law, as well as all policy-
holder surcharge provisions under State law, to the same 
extent and in the same manner as an insurer licensed to 
do business in such State and chartered in the State where 
the national insurer is considered domiciled under sub-
section (c) or (d), except that, such national insurer shall 
not be subject to— 
(1) any additional taxes, assessments, and 
charges imposed by such State (or local government) 
by reason of the failure of the national insurer to be 
licensed or otherwise authorized to conduct business 
or write or sell insurance policies, by such State; or 
(2) special assessments and charges that fund 
services that the State does not provide with respect 
to the national insurer. 
(b) EXCEPTION.—No State shall have the power to 
impose an insurance retaliatory tax on any national in-
surer, unless— 
(1) for any tax purpose for which the State of 
domicile is relevant, every national insurer is treated 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00087
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
by such State as domiciled in the State designated 
by each national insurer under subsection (c); and 
(2) the insurance retaliatory tax is imposed by 
such State on every national insurer to the same ex-
tent and in the same manner as it is imposed on 
every insurer chartered in the State where the na-
tional insurer is considered domiciled under sub-
section (c). 
(c) DESIGNATION OF DOMICILE.— 
(1) IN GENERAL.—A national insurer may des-
ignate as its State of domicile, by filing such des-
ignation in writing with the Commissioner— 
(A) the State in which the national insur-
er’s principal place of business in the United 
States is located; or 
(B) in the case of an insurer that has con-
verted from a State insurer to a national in-
surer under this Act, the State in which such 
insurer was domiciled immediately before such 
conversion. 
(2) NO DESIGNATION BY NATIONAL INSURER.— 
If a national insurer does not make a designation of 
a State of domicile under this subsection, the na-
tional insurer shall be deemed to have designated as 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00088
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
its State of domicile the State in which its principal 
place of business in the United States is located. 
(3) CHANGE IN DOMICILE.—A national insurer 
may change its State of domicile, with the approval 
of the Commissioner, to any other State in accord-
ance with paragraph (1). 
(d) STATUS OF NATIONAL INSURER.—For purposes 
of State taxation, except as provided in this section, a na-
tional insurer shall not be exempt from any State tax or 
subject to a lesser burden of any State tax, solely by rea-
son of its status as a national insurer under this Act. 
SEC. 322. STATE TAXATION OF NATIONAL INSURANCE 
AGENCIES. 
(a) STATE TAXATION RULE.—A national insurance 
agency shall be subject to all taxes imposed under any ap-
plicable provision of State law, to the same extent and in 
the same manner as an agency chartered in the State in 
which the national insurance agency is considered domi-
ciled pursuant to subsection (b). 
(b) STATE OF DOMICILE.—For purposes of this sec-
tion, the State of domicile of a national insurance agency 
shall be deemed to be the State in which the principal 
place of business of the national insurance agency in the 
United States is located. 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00089
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
(c) STATUS OF NATIONAL INSURANCE AGENCY.— 
For purposes of State taxation, except as provided in this 
section, a national insurance agency shall not be exempt 
from any State tax or subject to a lesser burden of any 
State tax, solely by reason of its status as a national insur-
ance agency under this Act. 
SEC. 323. STATE TAXATION OF NONADMITTED AND SUR-
PLUS LINES OF INSURANCE. 
No State, other than the State in which an insured 
maintains its principal place of business or, in the case 
of an individual, maintains a principal residence, may re-
quire a tax, fee, assessment, or other charge imposed on 
an insured, either directly or through a producer, that is 
based upon any payment made as consideration for non-
admitted insurance or surplus lines insurance, and any 
other compensation given in consideration for a contract 
of insurance. 
TITLE IV—NATIONAL 
INSURANCE PRODUCERS 
SEC. 401. LICENSING OF NATIONAL INSURANCE PRO-
DUCERS. 
(a) AUTHORITY.—The Commissioner may license an 
individual person as a national insurance producer. 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00090
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
(b) REQUIREMENTS FOR SALE OF NATIONAL INSUR-
ANCE.—An individual may sell, solicit, or negotiate insur-
ance for a national insurer only if— 
(1) such individual— 
(A) is licensed by the Commissioner under 
subsection (a); and 
(B) is— 
(i) an agent or employee of a national 
insurer or a national insurance agency; or 
(ii) self-employed and not affiliated 
with another national insurance producer, 
as determined by the Commissioner; or 
(2) such individual is licensed as an insurance 
producer under the laws of a State and sells, solicits, 
or negotiates such insurance to persons in such 
State. 
(c) SCOPE OF LICENSE.— 
(1) IN GENERAL.—A national insurance pro-
ducer may— 
(A) sell, solicit, or negotiate insurance in 
any State for a national insurer or a State in-
surer; 
(B) sell, solicit, or negotiate surplus lines 
of insurance and nonadmitted insurance for a 
non-admitted insurer; and 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00091
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
(C) exercise all such incidental powers as 
shall be necessary to carry out the activities re-
ferred to in subparagraphs (A) and (B), includ-
ing claims adjustments and settlement, risk 
management, employee benefits advice, retire-
ment planning, and any other insurance-related 
consulting activities. 
(2) LIMITATIONS.—The Commissioner may 
limit a license to one or more specified lines or types 
of insurance. 
(d) QUALIFICATIONS.—The Commissioner shall, by 
regulation, specify educational and examination require-
ments for obtaining a national insurance producer license, 
and may impose different requirements for different lines 
or types of insurance. 
SEC. 402. SUPERVISION AND EXAMINATION. 
(a) EXAMINATIONS.— 
(1) IN GENERAL.—The Commissioner may ex-
amine a national insurance producer to assess the 
producer’s compliance with this Act and the regula-
tions issued pursuant to this Act. 
(2) MANDATORY
EXAMINATIONS.—The Com-
missioner shall provide for the examination of a na-
tional insurance producer in response to a complaint 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00092
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
or any evidence that such producer has violated or 
is about to violate— 
(A) a law, rule, or regulation; 
(B) any condition imposed in writing by 
the Commissioner in connection with issuing a 
national insurance producer license; or 
(C) any written agreement entered into 
with the Commissioner. 
(b) REPORTS.—The Commissioner may require a na-
tional insurance producer to make such reports, con-
taining such information and in such form, as the Com-
missioner may prescribe by regulation. 
(c) POWERS.—The powers authorized the Commis-
sioner in section 121 shall apply to reports by and exami-
nations of national insurance producers. 
(d) LIMITATION ON LIABILITY.— 
(1) IN GENERAL.—Subject to paragraph (2), no 
civil liability shall be imposed on and no cause of ac-
tion shall arise from a national insurer or national 
insurance agency, an insurer-affiliated party, or a 
national insurance producer submitting a statement 
or information required under this Act, or any regu-
lation thereunder, or requested in writing by the 
Commissioner relating to the conduct of a national 
insurance producer. 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00093
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
(2) EXCEPTION.—Paragraph (1) shall not 
apply with respect to false statements made with ac-
tual malice. 
SEC. 403. PRODUCER DATABASE. 
(a) IN GENERAL.—The Commissioner shall develop 
and implement an electronic database consisting of infor-
mation relating to national insurance producers and an 
electronic communication network that links the Commis-
sioner with State insurance regulators and national insur-
ers, national insurance agencies, and State insurers for 
an electronic exchange of such information. 
(b) MAINTENANCE.—The Commissioner may dele-
gate authority over the maintenance of each database de-
scribed in subsection (a) to an insurance self-regulatory 
organization. 
SEC. 404. DUTY TO SUPERVISE. 
(a) NATIONAL INSURERS.—Unless a national insur-
ance producer is subject to the supervision of a national 
insurance agency under subsection (b), a national insurer 
shall supervise the sales and marketing practices of a na-
tional insurance producer with respect to the sale, solicita-
tion, or negotiation of insurance policies of such national 
insurer, if— 
(1) such producer is an— 
(A) employee of the national insurer; or 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00094
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS
(B) agent of the national insurer; and 
(2) the principal business activity of such pro-
ducer is devoted to the sale, solicitation, or negotia-
tion of insurance policies for such insurer, the super-
vision of the agents for such insurer, or both. 
(b) NATIONAL INSURANCE AGENCIES.—A national 
insurance agency shall supervise the sales and marketing 
practices of a national insurance producer with respect to 
the sale, solicitation, or negotiation of insurance policies, 
if such producer— 
(1) is an employee of such agency and the sale, 
solicitation, and negotiation of insurance is within 
the scope of employment of the producer; or 
(2) is an agent of such agency and the sale, so-
licitation, and negotiation of insurance is pursuant 
to the terms of an agreement between the agent and 
such agency. 
(c) STANDARDS FOR SUPERVISION.—The Commis-
sioner shall, by regulation, establish standards for the du-
ties under subsections (a) and (b). Such standards shall 
not conflict with the rules adopted by any self-regulatory 
organization approved by the Securities and Exchange 
Commission pursuant to its authority under section 
19(b)(1) of the Securities Exchange Act of 1934 (15 
VerDate Nov 24 2008 
02:15 Apr 07, 2009
Jkt 079200
PO 00000
Frm 00095
Fmt 6652
Sfmt 6201
E:\BILLS\H1880.IH
H1880
jbell on PROD1PC69 with BILLS