H. R. 26—18 
‘‘(1) share documents, materials, or other information, 
including confidential and privileged documents, with a State, 
Federal, or international governmental entity or with the NAIC 
or other appropriate entity referred to paragraphs (3) and (4), 
provided that the recipient has the authority and agrees to 
maintain the confidentiality or privileged status of the docu-
ment, material, or other information; 
‘‘(2) limit the sharing of information as required under 
this subtitle with the NAIC or any other non-governmental 
entity, in circumstances under which the Association deter-
mines that the sharing of such information is unnecessary 
to further the purposes of this subtitle; 
‘‘(3) establish a central clearinghouse, or utilize the NAIC 
or another appropriate entity, as determined by the Association, 
as a central clearinghouse, for use by the Association and 
the States (including State insurance regulators), through 
which members of the Association may disclose their intent 
to operate in 1 or more States and pay the licensing fees 
to the appropriate States; and 
‘‘(4) establish a database, or utilize the NAIC or another 
appropriate entity, as determined by the Association, as a data-
base, for use by the Association and the States (including 
State insurance regulators) for the collection of regulatory 
information concerning the activities of insurance producers. 
‘‘(k) EFFECTIVE DATE.—The provisions of this section shall take 
effect on the later of— 
‘‘(1) the expiration of the 2-year period beginning on the 
date of enactment of the National Association of Registered 
Agents and Brokers Reform Act of 2015; and 
‘‘(2) the date of incorporation of the Association. 
‘‘SEC. 324. BOARD OF DIRECTORS. 
‘‘(a) ESTABLISHMENT.—There is established a board of directors 
of the Association, which shall have authority to govern and super-
vise all activities of the Association. 
‘‘(b) POWERS.—The Board shall have such of the powers and 
authority of the Association as may be specified in the bylaws 
of the Association. 
‘‘(c) COMPOSITION.— 
‘‘(1) IN GENERAL.—The Board shall consist of 13 members 
who shall be appointed by the President, by and with the 
advice and consent of the Senate, in accordance with the proce-
dures established under Senate Resolution 116 of the 112th 
Congress, of whom— 
‘‘(A) 8 shall be State insurance commissioners 
appointed in the manner provided in paragraph (2), 1 of 
whom shall be designated by the President to serve as 
the chairperson of the Board until the Board elects one 
such State insurance commissioner Board member to serve 
as the chairperson of the Board; 
‘‘(B) 3 shall have demonstrated expertise and experi-
ence with property and casualty insurance producer 
licensing; and 
‘‘(C) 2 shall have demonstrated expertise and experi-
ence with life or health insurance producer licensing. 
‘‘(2) STATE INSURANCE REGULATOR REPRESENTATIVES.—
H. R. 26—19 
‘‘(A) RECOMMENDATIONS.—Before making any appoint-
ments pursuant to paragraph (1)(A), the President shall 
request a list of recommended candidates from the States 
through the NAIC, which shall not be binding on the Presi-
dent. If the NAIC fails to submit a list of recommendations 
not later than 15 business days after the date of the 
request, the President may make the requisite appoint-
ments without considering the views of the NAIC. 
‘‘(B) POLITICAL AFFILIATION.—Not more than 4 Board 
members appointed under paragraph (1)(A) shall belong 
to the same political party. 
‘‘(C) FORMER STATE INSURANCE COMMISSIONERS.— 
‘‘(i) IN GENERAL.—If, after offering each currently 
serving State insurance commissioner an appointment 
to the Board, fewer than 8 State insurance commis-
sioners have accepted appointment to the Board, the 
President may appoint the remaining State insurance 
commissioner Board members, as required under para-
graph (1)(A), of the appropriate political party as 
required under subparagraph (B), from among individ-
uals who are former State insurance commissioners. 
‘‘(ii) 
LIMITATION.—A 
former 
State 
insurance 
commissioner appointed as described in clause (i) may 
not be employed by or have any present direct or 
indirect financial interest in any insurer, insurance 
producer, or other entity in the insurance industry, 
other than direct or indirect ownership of, or beneficial 
interest in, an insurance policy or annuity contract 
written or sold by an insurer. 
‘‘(D) SERVICE
THROUGH
TERM.—If a Board member 
appointed under paragraph (1)(A) ceases to be a State 
insurance commissioner during the term of the Board 
member, the Board member shall cease to be a Board 
member. 
‘‘(3) PRIVATE
SECTOR
REPRESENTATIVES.—In making any 
appointment pursuant to subparagraph (B) or (C) of paragraph 
(1), the President may seek recommendations for candidates 
from groups representing the category of individuals described, 
which shall not be binding on the President. 
‘‘(4) STATE INSURANCE COMMISSIONER DEFINED.—For pur-
poses of this subsection, the term ‘State insurance commis-
sioner’ means a person who serves in the position in State 
government, or on the board, commission, or other body that 
is the primary insurance regulatory authority for the State. 
‘‘(d) TERMS.— 
‘‘(1) IN
GENERAL.—Except as provided under paragraph 
(2), the term of service for each Board member shall be 2 
years. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) 1-YEAR TERMS.—The term of service shall be 1 
year, as designated by the President at the time of the 
nomination of the subject Board members for— 
‘‘(i) 4 of the State insurance commissioner Board 
members initially appointed under paragraph (1)(A), 
of whom not more than 2 shall belong to the same 
political party;
H. R. 26—20 
‘‘(ii) 1 of the Board members initially appointed 
under paragraph (1)(B); and 
‘‘(iii) 1 of the Board members initially appointed 
under paragraph (1)(C). 
‘‘(B) EXPIRATION OF TERM.—A Board member may con-
tinue to serve after the expiration of the term to which 
the Board member was appointed for the earlier of 2 years 
or until a successor is appointed. 
‘‘(C) MID-TERM
APPOINTMENTS.—A Board member 
appointed to fill a vacancy occurring before the expiration 
of the term for which the predecessor of the Board member 
was appointed shall be appointed only for the remainder 
of that term. 
‘‘(3) SUCCESSIVE
TERMS.—Board members may be re-
appointed to successive terms. 
‘‘(e) INITIAL APPOINTMENTS.—The appointment of initial Board 
members shall be made no later than 90 days after the date of 
enactment of the National Association of Registered Agents and 
Brokers Reform Act of 2015. 
‘‘(f) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet— 
‘‘(A) at the call of the chairperson; 
‘‘(B) as requested in writing to the chairperson by 
not fewer than 5 Board members; or 
‘‘(C) as otherwise provided by the bylaws of the Associa-
tion. 
‘‘(2) QUORUM REQUIRED.—A majority of all Board members 
shall constitute a quorum. 
‘‘(3) VOTING.—Decisions of the Board shall require the 
approval of a majority of all Board members present at a 
meeting, a quorum being present. 
‘‘(4) INITIAL
MEETING.—The Board shall hold its first 
meeting not later than 45 days after the date on which all 
initial Board members have been appointed. 
‘‘(g) RESTRICTION
ON
CONFIDENTIAL
INFORMATION.—Board 
members appointed pursuant to subparagraphs (B) and (C) of sub-
section (c)(1) shall not have access to confidential information 
received by the Association in connection with complaints, investiga-
tions, or disciplinary proceedings involving insurance producers. 
‘‘(h) ETHICS AND CONFLICTS OF INTEREST.—The Board shall 
issue and enforce an ethical conduct code to address permissible 
and prohibited activities of Board members and Association officers, 
employees, agents, or consultants. The code shall, at a minimum, 
include provisions that prohibit any Board member or Association 
officer, employee, agent or consultant from— 
‘‘(1) engaging in unethical conduct in the course of per-
forming Association duties; 
‘‘(2) participating in the making or influencing the making 
of any Association decision, the outcome of which the Board 
member, officer, employee, agent, or consultant knows or had 
reason to know would have a reasonably foreseeable material 
financial effect, distinguishable from its effect on the public 
generally, on the person or a member of the immediate family 
of the person; 
‘‘(3) accepting any gift from any person or entity other 
than the Association that is given because of the position held 
by the person in the Association;
H. R. 26—21 
‘‘(4) making political contributions to any person or entity 
on behalf of the Association; and 
‘‘(5) lobbying or paying a person to lobby on behalf of 
the Association. 
‘‘(i) COMPENSATION.— 
‘‘(1) IN GENERAL.—Except as provided in paragraph (2), 
no Board member may receive any compensation from the 
Association or any other person or entity on account of Board 
membership. 
‘‘(2) TRAVEL EXPENSES AND PER DIEM.—Board members may 
be reimbursed only by the Association for travel expenses, 
including per diem in lieu of subsistence, at rates consistent 
with rates authorized for employees of Federal agencies under 
subchapter I of chapter 57 of title 5, United States Code, 
while away from home or regular places of business in perform-
ance of services for the Association. 
‘‘SEC. 325. BYLAWS, STANDARDS, AND DISCIPLINARY ACTIONS. 
‘‘(a) ADOPTION AND AMENDMENT OF BYLAWS AND STANDARDS.— 
‘‘(1) PROCEDURES.—The Association shall adopt procedures 
for the adoption of bylaws and standards that are similar 
to procedures under subchapter II of chapter 5 of title 5, United 
States Code (commonly known as the ‘Administrative Procedure 
Act’). 
‘‘(2) COPY REQUIRED TO BE FILED.—The Board 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, all proposed bylaws 
and standards of the Association, or any proposed amendment 
to the bylaws or standards of the Association, accompanied 
by a concise general statement of the basis and purpose of 
such proposal. 
‘‘(3) EFFECTIVE
DATE.—Any proposed bylaw or standard 
of the Association, and any proposed amendment to the bylaws 
or standards of the Association, shall take effect, after notice 
under paragraph (2) and opportunity for public comment, on 
such date as the Association may designate, unless suspended 
under section 329(c). 
‘‘(4) RULE OF CONSTRUCTION.—Nothing in this section shall 
be construed to subject the Board or the Association to the 
requirements of subchapter II of chapter 5 of title 5, United 
States Code (commonly known as the ‘Administrative Procedure 
Act’). 
‘‘(b) DISCIPLINARY ACTION BY THE ASSOCIATION.— 
‘‘(1) SPECIFICATION
OF
CHARGES.—In any proceeding to 
determine whether membership shall be denied, suspended, 
revoked, or not renewed, or to determine whether a member 
of the Association should be placed on probation (referred to 
in this section as a ‘disciplinary action’) or whether to assess 
fines or monetary penalties, the Association shall bring specific 
charges, notify the member of the charges, give the member 
an opportunity to defend against the charges, and keep a record. 
‘‘(2) SUPPORTING STATEMENT.—A determination to take dis-
ciplinary action shall be supported by a statement setting 
forth— 
‘‘(A) any act or practice in which the member has 
been found to have been engaged;