H. R. 26—14 
‘‘(ii) RIGHTS OF APPLICANTS DENIED MEMBERSHIP.— 
The Association shall notify any insurance producer 
who is denied membership on the basis of criminal 
history record information provided under subpara-
graph (E) of the right of the insurance producer to— 
‘‘(I) obtain a copy of all criminal history record 
information provided to the Association under 
subparagraph (E) with respect to the insurance 
producer; and 
‘‘(II) challenge the denial of membership based 
on the accuracy and completeness of the informa-
tion. 
‘‘(M) DEFINITION.—For purposes of this paragraph, the 
term ‘criminal history record check’ means a national back-
ground check of criminal history records of the Federal 
Bureau of Investigation. 
‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRITERIA.—The 
Association may establish membership criteria that bear a reason-
able relationship to the purposes for which the Association was 
established. 
‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES OF MEMBER-
SHIP.— 
‘‘(1) CLASSES OF MEMBERSHIP.—The Association may estab-
lish separate classes of membership, with separate criteria, 
if the Association reasonably determines that performance of 
different duties requires different levels of education, training, 
experience, or other qualifications. 
‘‘(2) BUSINESS ENTITIES.—The Association shall establish 
a class of membership and membership criteria for business 
entities. A business entity that applies for membership shall 
be required to designate an individual Association member 
responsible for the compliance of the business entity with 
Association standards and the insurance laws, standards, 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 INSURANCE PRODUCERS 
PERMITTED.—The Association may establish separate cat-
egories of membership for insurance producers and for 
other persons or entities within each class, based on the 
types of licensing categories that exist under State laws. 
‘‘(B) SEPARATE TREATMENT FOR DEPOSITORY INSTITU-
TIONS PROHIBITED.—No special categories of membership, 
and no distinct membership criteria, shall be established 
for members that are depository institutions or for 
employees, agents, or affiliates of depository institutions. 
‘‘(d) MEMBERSHIP CRITERIA.— 
‘‘(1) IN GENERAL.—The Association may establish criteria 
for membership which shall include standards for personal 
qualifications, education, training, and experience. The Associa-
tion shall not establish criteria that unfairly limit the ability 
of a small insurance producer to become a member of the 
Association, including imposing discriminatory membership 
fees. 
‘‘(2) QUALIFICATIONS.—In establishing criteria under para-
graph (1), the Association shall not adopt any qualification 
less protective to the public than that contained in the National
H. R. 26—15 
Association of Insurance Commissioners (referred to in this 
subtitle as 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 2015, and shall 
consider the highest levels of insurance producer qualifications 
established under the licensing laws of the States. 
‘‘(3) ASSISTANCE FROM STATES.— 
‘‘(A) IN GENERAL.—The Association may request a State 
to provide assistance in investigating and evaluating the 
eligibility of a prospective member for membership in the 
Association. 
‘‘(B) AUTHORIZATION
OF
INFORMATION
SHARING.—A 
submission under subsection (a)(4)(C)(i) made by an insur-
ance producer licensed in a State shall include a statement 
signed by the person about whom the assistance is 
requested authorizing— 
‘‘(i) the State to share information with the 
Association; and 
‘‘(ii) the Association to receive the information. 
‘‘(C) RULE OF CONSTRUCTION.—Subparagraph (A) shall 
not be construed as requiring or authorizing any State 
to adopt new or additional requirements concerning the 
licensing or evaluation of insurance producers. 
‘‘(4) DENIAL OF MEMBERSHIP.—The Association may, based 
on reasonably consistently applied standards, deny membership 
to any State-licensed insurance producer for failure to meet 
the membership 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 the State for any line or 
lines of insurance specified in the home State license of 
the insurance producer, and exercise all such incidental 
powers as shall be necessary to carry out such activities, 
including claims adjustments and settlement to the extent 
permissible under the laws of the State, risk management, 
employee benefits advice, retirement planning, and any 
other insurance-related consulting activities; 
‘‘(B) be the equivalent of a nonresident insurance pro-
ducer license for purposes of authorizing the insurance 
producer to engage in the activities described in subpara-
graph (A) in any State where the member pays the licensing 
fee; and 
‘‘(C) be the equivalent of a nonresident insurance pro-
ducer license for the purpose of subjecting an insurance 
producer to all laws, regulations, provisions or other action 
of any State concerning revocation, suspension, or other 
enforcement action related to the ability of a member to 
engage in any activity within the scope of authority granted 
under this subsection and to all State laws, regulations, 
provisions, and actions preserved under paragraph (5). 
‘‘(2) VIOLENT CRIME CONTROL AND LAW ENFORCEMENT 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.
H. R. 26—16 
‘‘(3) AGENT FOR REMITTING FEES.—The Association shall 
act as an agent for any member for purposes of remitting 
licensing fees to any State pursuant to paragraph (1). 
‘‘(4) NOTIFICATION OF ACTION.— 
‘‘(A) IN
GENERAL.—The Association shall notify the 
States (including State insurance regulators) and the NAIC 
when an insurance producer has satisfied the membership 
criteria of this section. The States (including State insur-
ance regulators) shall have 10 business days after the 
date of the notification in order to provide the Association 
with evidence that the insurance producer does not satisfy 
the criteria for membership in the Association. 
‘‘(B) ONGOING DISCLOSURES REQUIRED.—On an ongoing 
basis, the Association shall disclose to the States (including 
State insurance regulators) and the NAIC a list of the 
States in which each member is authorized to operate. 
The Association shall immediately notify the States 
(including State insurance regulators) and the NAIC when 
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 CONSUMER PROTECTION AND MARKET 
CONDUCT REGULATION.— 
‘‘(A) IN GENERAL.—No provision of this section shall 
be construed as altering or affecting the applicability or 
continuing effectiveness of any law, regulation, provision, 
or other action of any State, including those described 
in subparagraph (B), to the extent that the State law, 
regulation, provision, or other action is not inconsistent 
with the provisions of this subtitle related to market entry 
for nonresident insurance producers, and then only to the 
extent of the inconsistency. 
‘‘(B) PRESERVED REGULATIONS.—The laws, regulations, 
provisions, or other actions of any State referred to in 
subparagraph (A) include laws, regulations, provisions, or 
other actions that— 
‘‘(i) regulate market conduct, insurance producer 
conduct, or unfair trade practices; 
‘‘(ii) establish consumer protections; or 
‘‘(iii) require insurance producers to be appointed 
by a licensed or authorized insurer. 
‘‘(f) BIENNIAL RENEWAL.—Membership in the Association shall 
be renewed on a biennial basis. 
‘‘(g) CONTINUING EDUCATION.— 
‘‘(1) IN GENERAL.—The Association shall establish, as a 
condition of membership, continuing education requirements 
which shall be comparable to the continuing education require-
ments under the licensing laws of a majority of the States. 
‘‘(2) STATE
CONTINUING
EDUCATION
REQUIREMENTS.—A 
member may not be required to satisfy continuing education 
requirements imposed under the laws, regulations, provisions, 
or actions of any State other than the home State of the 
member. 
‘‘(3) RECIPROCITY.—The Association shall not require a 
member to satisfy continuing education requirements that are 
equivalent to any continuing education requirements of the
H. R. 26—17 
home State of the member that have been satisfied by the 
member during the applicable licensing period. 
‘‘(4) LIMITATION
ON
THE
ASSOCIATION.—The Association 
shall not directly or indirectly offer any continuing 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 the membership of the insurance 
producer in the Association, or assess monetary fines or pen-
alties, as the Association determines to be appropriate, if— 
‘‘(A) the insurance producer fails to meet the applicable 
membership criteria or other standards established by the 
Association; 
‘‘(B) the insurance producer has been subject to discipli-
nary action pursuant to a final adjudicatory proceeding 
under the jurisdiction of a State insurance regulator; 
‘‘(C) an insurance license held by the insurance pro-
ducer has been suspended or revoked by a State insurance 
regulator; or 
‘‘(D) the insurance producer has been convicted of a 
crime that would have resulted in the denial of membership 
pursuant to subsection (a)(4)(L)(i) at the time of application, 
and the Association has received a copy of the final disposi-
tion from a court of competent jurisdiction. 
‘‘(2) VIOLATIONS OF ASSOCIATION STANDARDS.—The Associa-
tion shall have the power to investigate alleged violations of 
Association standards. 
‘‘(3) REPORTING.—The Association shall immediately notify 
the States (including State insurance regulators) and the NAIC 
when the membership of an insurance producer has been placed 
on probation or has been suspended, revoked, or otherwise 
terminated, or when the Association has assessed monetary 
fines or penalties. 
‘‘(i) CONSUMER COMPLAINTS.— 
‘‘(1) IN GENERAL.—The Association shall— 
‘‘(A) refer any complaint against a member of the 
Association from a consumer relating to alleged misconduct 
or violations of State insurance laws to the State insurance 
regulator where the consumer resides and, when appro-
priate, to any additional State insurance regulator, as 
determined by standards adopted by the Association; and 
‘‘(B) make any related records and information avail-
able to each State insurance regulator to whom the com-
plaint 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 Association with information 
regarding the final disposition of a complaint referred pursuant 
to paragraph (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 Association. 
‘‘(j) INFORMATION SHARING.—The Association may—