H. R. 26—22 
‘‘(B) the specific provision of this subtitle or standard 
of the Association that any such act or practice is deemed 
to violate; and 
‘‘(C) the sanction imposed and the reason for the sanc-
tion. 
‘‘(3) INELIGIBILITY OF PRIVATE SECTOR REPRESENTATIVES.— 
Board members appointed pursuant to section 324(c)(3) may 
not— 
‘‘(A) participate in any disciplinary action or be counted 
toward establishing a quorum during a disciplinary action; 
and 
‘‘(B) have access to confidential information concerning 
any disciplinary action. 
‘‘SEC. 326. POWERS. 
‘‘In addition to all the powers conferred upon a nonprofit cor-
poration by the District of Columbia Nonprofit Corporation Act, 
the Association shall have the power to— 
‘‘(1) establish and collect such membership fees as the 
Association finds necessary to impose to cover the costs of 
its operations; 
‘‘(2) adopt, amend, and repeal bylaws, procedures, or stand-
ards governing the conduct of Association business and perform-
ance of its duties; 
‘‘(3) establish procedures for providing notice and oppor-
tunity for comment pursuant to section 325(a); 
‘‘(4) enter into and perform such agreements as necessary 
to carry out the duties of the Association; 
‘‘(5) hire employees, professionals, or specialists, and elect 
or appoint officers, and to fix their compensation, define their 
duties and give them appropriate authority to carry out the 
purposes of this subtitle, and determine their qualification; 
‘‘(6) establish personnel policies of the Association and pro-
grams relating to, among other things, conflicts of interest, 
rates of compensation, where applicable, and qualifications of 
personnel; 
‘‘(7) borrow money; and 
‘‘(8) secure funding for such amounts as the Association 
determines to be necessary and appropriate to organize and 
begin operations of the Association, which shall be treated 
as loans to be repaid by the Association with interest at market 
rate. 
‘‘SEC. 327. REPORT BY THE ASSOCIATION. 
‘‘(a) IN GENERAL.—As soon as practicable after the close of 
each fiscal year, the Association shall submit to the President, 
through the Department of the Treasury, and the States (including 
State insurance regulators), and shall publish on the website of 
the Association, a written report regarding the conduct of its busi-
ness, and the exercise of the other rights and powers granted 
by this subtitle, during such fiscal year. 
‘‘(b) FINANCIAL STATEMENTS.—Each report submitted under 
subsection (a) with respect to any fiscal year shall include audited 
financial statements setting forth the financial 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.
H. R. 26—23 
‘‘SEC. 328. LIABILITY OF THE ASSOCIATION AND THE BOARD MEMBERS, 
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 regulating or taxing insurers, 
insurance producers, or other entities engaged in the business of 
insurance, including provisions imposing premium taxes, regulating 
insurer solvency or financial condition, establishing guaranty funds 
and levying assessments, or requiring claims settlement practices. 
‘‘(b) 
LIABILITY
OF
BOARD
MEMBERS, 
OFFICERS, 
AND 
EMPLOYEES.—No Board member, officer, or employee of the Associa-
tion shall be personally liable to any person for any action taken 
or omitted in good faith in any matter within the scope of their 
responsibilities in connection with the Association. 
‘‘SEC. 329. PRESIDENTIAL OVERSIGHT. 
‘‘(a) REMOVAL
OF BOARD.—If the President determines that 
the Association is acting in a manner contrary to the interests 
of the public or the purposes of this subtitle 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 Board members were appointed and appoint, in accordance 
with section 324 and with the advice and consent of the Senate, 
in accordance with the procedures established under Senate Resolu-
tion 116 of the 112th Congress, new Board members to fill the 
vacancies on the Board for the remainder of the terms. 
‘‘(b) REMOVAL OF BOARD MEMBER.—The President may remove 
a Board member only for neglect of duty or malfeasance in office. 
‘‘(c) SUSPENSION OF BYLAWS AND STANDARDS AND PROHIBITION 
OF ACTIONS.—Following notice to the Board, the President, or a 
person designated by the President for such purpose, may suspend 
the effectiveness of any bylaw or standard, or prohibit any action, 
of the Association that the President or the designee determines 
is contrary to the purposes of this subtitle. 
‘‘SEC. 330. RELATIONSHIP TO STATE LAW. 
‘‘(a) PREEMPTION
OF STATE LAWS.—State laws, regulations, 
provisions, or other actions purporting to regulate insurance pro-
ducers 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 action against, 
or apply any provision of law or regulation arbitrarily 
or discriminatorily to, any insurance producer because that 
insurance producer or any affiliate plans to become, has 
applied to become, or is a member of the Association; 
‘‘(B) impose any requirement upon a member 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 requirements on 
any nonresident insurance producer that is a member of 
the Association. 
‘‘(2) STATES OTHER THAN A HOME STATE.—No State, other 
than the home State of a member of the Association, shall—
H. R. 26—24 
‘‘(A) impose any licensing, personal or corporate quali-
fications, education, training, experience, residency, con-
tinuing education, or bonding requirement upon a member 
of the Association that is different from the criteria for 
membership in the Association or renewal of such member-
ship; 
‘‘(B) impose any requirement upon a member of the 
Association that it be licensed, registered, or otherwise 
qualified to do business or remain in good standing in 
the State, including any requirement that the insurance 
producer register as a foreign company with the secretary 
of state or equivalent State official; 
‘‘(C) require that a member of the Association submit 
to a criminal history record check as a condition of doing 
business in the State; or 
‘‘(D) impose any licensing, registration, or appointment 
requirements upon a member of the Association, or require 
a member of the Association to be authorized to operate 
as an insurance producer, in order to sell, solicit, or nego-
tiate insurance for commercial property and casualty risks 
to an insured with risks located in more than one State, 
if the member is licensed or otherwise authorized to operate 
in the State where the insured maintains its principal 
place of business and the contract of insurance insures 
risks located in that State. 
‘‘(3) PRESERVATION OF STATE DISCIPLINARY AUTHORITY.— 
Nothing in this section may be construed to prohibit a State 
from investigating and taking appropriate disciplinary action, 
including suspension or revocation of authority of an insurance 
producer to do business in a State, in accordance with State 
law and that is not inconsistent with the provisions of this 
section, against a member of the Association as a result of 
a complaint or for any alleged activity, regardless of whether 
the activity occurred before or after the insurance producer 
commenced doing business in the State pursuant to Association 
membership. 
‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY REGULATORY 
AUTHORITY. 
‘‘The Association shall coordinate with the Financial Industry 
Regulatory Authority in order to ease any administrative burdens 
that fall on members of the Association that are subject to regula-
tion by the Financial Industry Regulatory Authority, consistent 
with the requirements of this subtitle and the Federal securities 
laws. 
‘‘SEC. 332. RIGHT OF ACTION. 
‘‘(a) RIGHT OF ACTION.—Any person aggrieved by a decision 
or action of the Association may, after reasonably exhausting avail-
able avenues for resolution within the Association, commence a 
civil action in an appropriate United States district court, and 
obtain all appropriate relief. 
‘‘(b) ASSOCIATION INTERPRETATIONS.—In any action under sub-
section (a), the court shall give appropriate weight to the interpreta-
tion of the Association of its bylaws and standards and this subtitle.
H. R. 26—25 
‘‘SEC. 333. FEDERAL FUNDING PROHIBITED. 
‘‘The Association may not receive, accept, or borrow any 
amounts from the Federal Government to pay for, or reimburse, 
the Association for, the costs of establishing or operating the 
Association. 
‘‘SEC. 334. DEFINITIONS. 
‘‘For purposes of this subtitle, the following definitions shall 
apply: 
‘‘(1) BUSINESS ENTITY.—The term ‘business entity’ means 
a corporation, association, partnership, limited liability com-
pany, limited liability partnership, or other legal entity. 
‘‘(2) 
DEPOSITORY
INSTITUTION.—The 
term 
‘depository 
institution’ has the meaning as in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813). 
‘‘(3) HOME STATE.—The term ‘home State’ means the State 
in which the insurance producer maintains its principal place 
of residence or business and is licensed to act as an insurance 
producer. 
‘‘(4) INSURANCE.—The term ‘insurance’ means any product, 
other than title insurance or bail bonds, defined or regulated 
as insurance by the appropriate State insurance regulatory 
authority. 
‘‘(5) INSURANCE PRODUCER.—The term ‘insurance producer’ 
means any insurance agent or broker, excess or surplus lines 
broker or agent, insurance consultant, limited insurance rep-
resentative, and any other individual or entity that sells, 
solicits, or negotiates policies of insurance or offers advice, 
counsel, opinions or services related to insurance. 
‘‘(6) INSURER.—The term ‘insurer’ has the meaning as in 
section 313(e)(2)(B) of title 31, United States Code. 
‘‘(7) PRINCIPAL PLACE OF BUSINESS.—The term ‘principal 
place of business’ means the State in which an insurance pro-
ducer maintains the headquarters of the insurance producer 
and, in the case of a business entity, where high-level officers 
of the entity direct, control, and coordinate the business activi-
ties of the business entity. 
‘‘(8) PRINCIPAL PLACE OF RESIDENCE.—The term ‘principal 
place of residence’ means the State in which an insurance 
producer resides for the greatest number of days during a 
calendar year. 
‘‘(9) STATE.—The term ‘State’ includes any State, the Dis-
trict of Columbia, any territory of the United States, and Puerto 
Rico, Guam, American Samoa, the Trust Territory of the Pacific 
Islands, the Virgin Islands, and the Northern Mariana Islands. 
‘‘(10) STATE LAW.— 
‘‘(A) IN GENERAL.—The term ‘State law’ includes all 
laws, decisions, rules, regulations, or other State action 
having the effect of law, of any State. 
‘‘(B) LAWS APPLICABLE IN THE DISTRICT OF COLUMBIA.— 
A law of the United States applicable only to or within 
the District of Columbia shall be treated as a State law 
rather than a law of the United States.’’. 
(b) TECHNICAL AMENDMENT.—The table of contents for the 
Gramm-Leach-Bliley Act is amended by striking the items relating 
to subtitle C of title III and inserting the following new items: