ing the amount of such premiums, the Secretary 
shall— 
‘‘(i) impose such terrorism loss risk- 
spreading premiums beginning with such 
period of coverage during the year as the 
Secretary determines appropriate, but shall 
commence imposition of such premiums not 
later than 18 months after the occurrence of 
the act of terrorism for which such pre-
miums are imposed; 
‘‘(ii) base any terrorism loss risk- 
spreading premium on a percentage of the 
premium amount charged for property and 
casualty insurance coverage under the pol-
icy; and 
‘‘(iii) take into consideration— 
‘‘(I) the economic impact on com-
mercial centers of urban areas, includ-
ing the effect on commercial rents and 
commercial insurance premiums, par-
ticularly rents and premiums charged 
to small businesses, and the avail-
ability of lease space and commercial 
insurance within urban areas; 
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‘‘(II) the risk factors related to 
rural areas and smaller commercial 
centers, including the potential expo-
sure to loss and the likely magnitude of 
such loss, as well as any resulting 
cross-subsidization that might result; 
and 
‘‘(III) the various exposures to 
terrorism risk for different lines of in-
surance. 
‘‘(D) PERCENTAGE
LIMITATION.—A ter-
rorism loss risk-spreading premium collected on 
a discretionary basis pursuant to paragraph 
(7)(C) shall not be less than, on an annual basis, 
the amount equal to 3 percent of the premium 
charged for property and casualty insurance cov-
erage under the policy. 
‘‘(E) TIMING OF PREMIUMS.—The Secretary 
may adjust the timing of terrorism loss risk- 
spreading premiums to provide for equivalent 
application of the provisions of this title to poli-
cies that are not based on a calendar year, or to 
apply such provisions on a daily, monthly, or 
quarterly basis, as appropriate.’’. 
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(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to the Program Year for the Ter-
rorism Insurance Program established by title I of the Ter-
rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 
that begins on January 1, 2016, and Program Years there-
after. 
SEC. 109. RISK-SHARING MECHANISMS. 
(a) IN GENERAL.—Section 103(e) (15 U.S.C. 6701 
note) is amended by adding at the end the following new 
paragraph: 
‘‘(9) RISK-SHARING MECHANISMS.— 
‘‘(A) FINDING; RULE OF CONSTRUCTION.— 
The Congress finds that it is desirable to encour-
age the growth of nongovernmental, private mar-
ket reinsurance capacity for protection against 
losses arising from acts of terrorism. Therefore, 
nothing in this title shall prohibit insurers from 
developing risk-sharing mechanisms (including 
mutual reinsurance facilities and agreements, 
use of the capital markets, and insurance-linked 
securities) to voluntarily reinsure terrorism 
losses between and among themselves that are not 
subject to reimbursement under this section. 
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‘‘(B) ESTABLISHMENT OF ADVISORY COM-
MITTEE.—The Secretary shall appoint an Advi-
sory Committee to— 
‘‘(i) encourage the creation and devel-
opment of such risk-sharing mechanisms; 
‘‘(ii) assist the Secretary and be avail-
able to administer such risk-sharing mecha-
nisms; and 
‘‘(iii) develop articles of incorporation, 
bylaws, and a plan of operation for any 
long-term reinsurance facility authorized or 
created in the future. 
‘‘(C) MEMBERSHIP.—The Advisory Com-
mittee shall be composed of nine members who 
are directors, officers, or other employees of in-
surers, reinsurers, or capital market participants 
that are participating or that desire to partici-
pate in such mechanisms, and who are represent-
ative of the affected sectors of the insurance in-
dustry, including commercial property insur-
ance, commercial casualty insurance, reinsur-
ance, and alternative risk transfer industries.’’. 
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply to the Program Year for the Ter-
rorism Insurance Program established by title I of the Ter-
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rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 note) 
that begins on January 1, 2015, and Program Years there-
after. 
SEC. 110. REPORTING OF TERRORISM INSURANCE DATA. 
Section 104 (15 U.S.C. 6701 note) is amended by add-
ing at the end the following new subsection: 
‘‘(h) REPORTING OF TERRORISM INSURANCE DATA.— 
‘‘(1) AUTHORITY.—During the Program Year be-
ginning on January 1, 2016, and in each Program 
Year thereafter, the Secretary shall require insurers 
participating in the Program to submit to the Sec-
retary such information regarding insurance coverage 
for terrorism losses of such insurers as the Secretary 
considers appropriate to analyze the effectiveness of 
the Program, which shall include information regard-
ing— 
‘‘(A) lines of insurance with exposure to 
such losses; 
‘‘(B) premiums earned on such coverage; 
‘‘(C) geographical location of exposures; 
‘‘(D) pricing of such coverage; 
‘‘(E) the take-up rate for such coverage; 
‘‘(F) the amount of private reinsurance for 
acts of terrorism purchased; and 
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‘‘(G) such other matters as the Secretary 
considers appropriate. 
‘‘(2) REPORTS.—Not later than 6 months after 
the termination of the Program Year beginning on 
January 1, 2016, and not later than 6 months after 
the termination of each Program Year thereafter, the 
Secretary shall submit a report to the Committee on 
Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban 
Affairs of the Senate that includes— 
‘‘(A) an analysis of the overall effectiveness 
of the Program; 
‘‘(B) an evaluation of any changes or trends 
in the data collected under paragraph (1); 
‘‘(C) an evaluation of whether any aspects 
of the Program have the effect of discouraging or 
impeding insurers from providing commercial 
property casualty insurance coverage or coverage 
for acts of terrorism; 
‘‘(D) an evaluation of the impact of the 
Program on workers’ compensation insurers; 
‘‘(E) an evaluation of the impact on avail-
ability and affordability of terrorism insurance 
coverage and fiscal protection of the taxpayers of 
separate Federal treatment under the Program 
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for nuclear, biological, chemical, and radiological 
terrorism; and 
‘‘(F) in the case of the data reported in 
paragraph (1)(B), an updated estimate of the 
total amount earned since the commencement of 
Program Year 1. 
‘‘(3) PROTECTION OF DATA.—To the extent pos-
sible, the Secretary shall contract with an insurance 
statistical aggregator to collect the information de-
scribed in paragraph (1), which shall keep any non-
public information confidential and provide it to the 
Secretary in an aggregate form or in such other form 
or manner that does not permit identification of the 
insurer submitting such information. 
‘‘(4) ADVANCE COORDINATION.—Before collecting 
any data or information under paragraph (1) from 
an insurer, or affiliate of an insurer, the Secretary 
shall coordinate with the appropriate State insurance 
regulatory authorities or their representatives and 
any relevant government agency or publicly available 
sources to determine if the information to be collected 
is available from, and may be obtained in a timely 
manner by, individually or collectively, such entities. 
If the Secretary determines that such data or infor-
mation is available, and may be obtained in a timely 
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matter, from such entities, the Secretary shall obtain 
the data or information from such entities. If the Sec-
retary determines that such data or information is 
not so available, the Secretary may collect such data 
or information from an insurer and affiliates. 
‘‘(5) CONFIDENTIALITY.— 
‘‘(A) RETENTION OF PRIVILEGE.—The sub-
mission of any non-publicly available data and 
information to the Secretary and the sharing of 
any non-publicly available data with or by the 
Secretary among other Federal agencies, the 
State insurance regulatory authorities and their 
collective agents, or any other entities under this 
subsection shall not constitute a waiver of, or 
otherwise affect, any privilege arising under 
Federal or State law (including the rules of any 
Federal or State court) to which the data or in-
formation is otherwise subject. 
‘‘(B) CONTINUED
APPLICATION
OF
PRIOR 
CONFIDENTIALITY
AGREEMENTS.—Any require-
ment under Federal or State law to the extent 
otherwise applicable, or any requirement pursu-
ant to a written agreement in effect between the 
original source of any non-publicly available 
data or information and the source of such data 
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or information to the Secretary, regarding the 
privacy or confidentiality of any data or infor-
mation in the possession of the source to the Sec-
retary, shall continue to apply to such data or 
information after the data or information has 
been provided pursuant to this subsection. 
‘‘(C) INFORMATION-SHARING AGREEMENT.— 
Any data or information obtained by the Sec-
retary under this subsection may be made avail-
able to State insurance regulatory authorities, 
individually or collectively through an informa-
tion-sharing agreement that— 
‘‘(i) shall comply with applicable Fed-
eral law; and 
‘‘(ii) shall not constitute a waiver of, 
or otherwise affect, any privilege under Fed-
eral or State law (including any privilege 
referred to in subparagraph (A) and the 
rules of any Federal or State court) to 
which the data or information is otherwise 
subject. 
‘‘(D) 
AGENCY
DISCLOSURE
REQUIRE-
MENTS.—Section 552 of title 5, United States 
Code, including any exceptions thereunder, shall 
apply to any data or information submitted 
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under this subsection to the Secretary by an in-
surer or affiliate of an insurer.’’. 
SEC. 111. DELIVERY OF NOTICES TO POLICYHOLDERS. 
Section 103(b)(2) (15 U.S.C. 6701 note) is amended— 
(1) in subparagraph (B), by striking ‘‘, pur-
chase,’’; and 
(2) in subparagraph (C), by striking ‘‘, pur-
chase,’’. 
SEC. 112. DEFINITION OF CONTROL. 
Paragraph (3) of section 102 (15 U.S.C. 6701 note) 
is amended— 
(1) by redesignating subparagraphs (A), (B), 
and (C) as clauses (i), (ii), and (iii), respectively and 
realigning such clauses, as so redesignated, so as to be 
indented six ems from the left margin; 
(2) in the matter preceding clause (i) (as so re-
designated), by striking ‘‘An entity has’’ and insert-
ing the following: 
‘‘(A) IN GENERAL.—An entity has’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) RULE OF CONSTRUCTION.—An entity, 
including any affiliate thereof, does not have 
control over another entity if, as of the date of 
the enactment of the TRIA Reform Act of 2014, 
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the entity is acting as an attorney-in-fact, as de-
fined by the Secretary, for the other entity and 
such other entity is a reciprocal insurer, pro-
vided that the entity is not, for reasons other 
than the attorney-in-fact relationship, defined as 
having control under subparagraph (A).’’. 
SEC. 113. ANNUAL STUDY OF SMALL INSURER MARKET 
COMPETITIVENESS. 
Section 108 (15 U.S.C. 6701 note) is amended by add-
ing at the end the following new subsection: 
‘‘(h) STUDY OF SMALL INSURER MARKET COMPETI-
TIVENESS.— 
‘‘(1) IN GENERAL.—The Secretary shall conduct 
an annual study of small insurers participating in 
the Program, and identify any competitive challenges 
small insurers face in the terrorism risk insurance 
marketplace, including— 
‘‘(A) changes to the market share, premium 
volume, and policyholder surplus of small insur-
ers relative to large insurers; 
‘‘(B) how the property and casualty insur-
ance market for terrorism risk differs between 
small and large insurers, and whether such a 
difference exists within other perils; 
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‘‘(C) the impact of the Program’s manda-
tory availability requirement under section 
103(c) and the voluntary opt-out for small insur-
ers; 
‘‘(D) the effect of increasing the trigger 
amount 
for 
the 
Program 
under 
section 
103(e)(1)(B)(iii)(I) on small insurers; 
‘‘(E) the availability and cost of private re-
insurance for small insurers; and 
‘‘(F) the impact that State workers com-
pensation laws have on small insurers, particu-
larly the impact of mandatory, non-excludable 
participation and unlimited financial liability. 
‘‘(2) TIMING AND REPORT.—The Secretary shall 
complete the first study under paragraph (1) and sub-
mit a report to the Congress setting forth the findings 
and conclusions of the study not later than June 30, 
2016, and shall complete an annual study under 
paragraph (1) and submit a report regarding such 
study to the Congress by June 1 annually thereafter.’’. 
SEC. 114. CBO AND OMB STUDIES REGARDING BUDGETING 
FOR COSTS OF FEDERAL INSURANCE PRO-
GRAMS. 
Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the Di-
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rector of the Congressional Budget Office and the Director 
of the Office of Management and Budget shall each— 
(1) conduct a study to determine the feasibility 
of applying accrual accounting concepts to budgeting 
for the costs of the Terrorism Risk Insurance Program 
and for the costs of the other Federal insurance pro-
grams; and 
(2) submit a report regarding such study to the 
Committees on the Budget of the House of Representa-
tives and the Senate, which shall include a rec-
ommendation specifically addressing the feasibility of 
applying fair value concepts to budgeting for the costs 
of Federal insurance programs, including the Ter-
rorism Risk Insurance Program. 
SEC. 115. GAO STUDY ON UPFRONT PREMIUMS AND CAP-
ITAL RESERVE FUND. 
(a) STUDY.—Not later than 2 years after the date of 
the enactment of this Act, the Comptroller General of the 
United States shall complete a study on the viability of the 
Federal Government— 
(1) assessing and collecting upfront premiums on 
insurers that participate in the Terrorism Risk In-
surance Program established under the Terrorism 
Risk Insurance Act of 2002 (15 U.S.C. 6701 note) (in 
this section referred to as the ‘‘Program’’), which shall 
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include a comparison of practices in international 
markets to assess and collect premiums either before 
or after terrorism losses are incurred; and 
(2) creating a capital reserve fund under the 
Program and requiring insurers participating in the 
Program to dedicate capital specifically for terrorism 
losses before such losses are incurred, which shall in-
clude a comparison of practices in international mar-
kets to establish reserve funds. 
(b) REQUIRED CONTENT.—The study required under 
subsection (a) shall examine, but shall not be limited to, 
the following issues: 
(1) UPFRONT PREMIUMS.—With respect to up-
front premiums described in subsection (a)(1)— 
(A) how the Federal Government could de-
termine the price of such upfront premiums on 
insurers that participate in the Program; 
(B) how the Federal Government could col-
lect such upfront premiums; 
(C) how the Federal Government could en-
sure that such upfront premiums are not spent 
for purposes other than satisfying claims through 
the Program; 
(D) how the assessment and collection of 
such upfront premiums could affect take-up rates 
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for terrorism risk coverage in different regions 
and industries; 
(E) the effect of collecting such upfront pre-
miums on the private market for terrorism risk 
reinsurance; and 
(F) the size of the Federal Government sub-
sidy insurers currently receive through their par-
ticipation in the Program. 
(2) CAPITAL RESERVE FUND.—With respect to 
the capital reserve fund described in subsection 
(a)(2)— 
(A) how the creation of a capital reserve 
fund would affect the Federal Government’s fis-
cal exposure under the Terrorism Risk Insurance 
Program and the ability of the Program to meet 
its statutory purposes; 
(B) how a capital reserve fund would im-
pact insurers and reinsurers, including liquid-
ity, insurance pricing, and capacity to provide 
terrorism risk coverage; 
(C) the feasibility of segregating funds at-
tributable to terrorism risk from funds attrib-
utable to other insurance lines; 
(D) how a capital reserve fund would be 
viewed and treated under current Financial Ac-
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counting Standards Board accounting rules and 
the tax laws; and 
(E) how a capital reserve fund would affect 
the States’ ability to regulate insurers partici-
pating in the Program. 
(3) INTERNATIONAL PRACTICES.—With respect to 
international markets referred to in paragraphs (1) 
and (2) of subsection (A), how other countries, if 
any— 
(A) have established terrorism insurance 
structures; 
(B) charge premiums or otherwise collect 
funds to pay for the costs of terrorism insurance 
structures, including risk and administrative 
costs; and 
(C) have established capital reserve funds to 
pay for the costs of terrorism insurance struc-
tures. 
(4) DURATION.—With respect to the capital re-
serve fund described in subsection (a)(2), how the du-
ration of the Program would affect the viability of 
such capital reserve fund. 
(c) REPORT.—Upon completion of the study required 
under subsection (a), the Comptroller General shall submit 
a report on the results of such study to the Committee on 
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Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives. 
(d) PUBLIC AVAILABILITY.—The study and report re-
quired under this section shall be made available to the pub-
lic in electronic form and shall be published on the website 
of the Government Accountability Office. 
TITLE 
II—NATIONAL 
ASSOCIA-
TION 
OF 
REGISTERED 
AGENTS AND BROKERS RE-
FORM 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘National Association 
of Registered Agents and Brokers Reform Act of 2014’’. 
SEC. 202. REESTABLISHMENT OF THE NATIONAL ASSOCIA-
TION OF REGISTERED AGENTS AND BRO-
KERS. 
(a) IN GENERAL.—Subtitle C of title III of the 
Gramm-Leach-Bliley Act (15 U.S.C. 6751 et seq.) is amend-
ed to read as follows: 
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‘‘Subtitle C—National Association 
of Registered Agents and Brokers 
‘‘SEC. 
321. 
NATIONAL 
ASSOCIATION 
OF 
REGISTERED 
AGENTS AND BROKERS. 
‘‘(a) ESTABLISHMENT.—There is established the Na-
tional Association of Registered Agents and Brokers (re-
ferred to in this subtitle as the ‘Association’). 
‘‘(b) STATUS.—The Association shall— 
‘‘(1) be a nonprofit corporation; 
‘‘(2) not be an agent or instrumentality of the 
Federal Government; 
‘‘(3) be an independent organization that may 
not be merged with or into any other private or pub-
lic entity; and 
‘‘(4) except as otherwise provided in this subtitle, 
be subject to, and have all the powers conferred upon, 
a nonprofit corporation by the District of Columbia 
Nonprofit Corporation Act (D.C. Code, sec. 29–301.01 
et seq.) or any successor thereto. 
‘‘SEC. 322. PURPOSE. 
‘‘The purpose of the Association shall be to provide a 
mechanism through which licensing, continuing education, 
and other nonresident insurance producer qualification re-
quirements and conditions may be adopted and applied on 
a multi-state basis without affecting the laws, rules, and 
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regulations, and preserving the rights of a State, pertaining 
to— 
‘‘(1) licensing, continuing education, and other 
qualification requirements of insurance producers 
that are not members of the Association; 
‘‘(2) resident or nonresident insurance producer 
appointment requirements; 
‘‘(3) supervising and disciplining resident and 
nonresident insurance producers; 
‘‘(4) establishing licensing fees for resident and 
nonresident insurance producers so that there is no 
loss of insurance producer licensing revenue to the 
State; and 
‘‘(5) prescribing and enforcing laws and regula-
tions regulating the conduct of resident and non-
resident insurance producers. 
‘‘SEC. 323. MEMBERSHIP. 
‘‘(a) ELIGIBILITY.— 
‘‘(1) IN GENERAL.—Any insurance producer li-
censed in its home State shall, subject to paragraphs 
(2) and (4), be eligible to become a member of the As-
sociation. 
‘‘(2) INELIGIBILITY FOR SUSPENSION OR REV-
OCATION OF LICENSE.—Subject to paragraph (3), an 
insurance producer is not eligible to become a member 
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of the Association if a State insurance regulator has 
suspended or revoked the insurance license of the in-
surance producer in that State. 
‘‘(3) RESUMPTION OF ELIGIBILITY.—Paragraph 
(2) shall cease to apply to any insurance producer 
if— 
‘‘(A) the State insurance regulator reissues 
or renews the license of the insurance producer 
in the State in which the license was suspended 
or revoked, or otherwise terminates or vacates the 
suspension or revocation; or 
‘‘(B) the suspension or revocation expires or 
is subsequently overturned by a court of com-
petent jurisdiction. 
‘‘(4) CRIMINAL
HISTORY
RECORD
CHECK
RE-
QUIRED.— 
‘‘(A) IN GENERAL.—An insurance producer 
who is an individual shall not be eligible to be-
come a member of the Association unless the in-
surance producer has undergone a criminal his-
tory record check that complies with regulations 
prescribed by the Attorney General of the United 
States under subparagraph (K). 
‘‘(B) CRIMINAL
HISTORY
RECORD
CHECK 
REQUESTED
BY
HOME
STATE.—An insurance 
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producer who is licensed in a State and who has 
undergone a criminal history record check dur-
ing the 2-year period preceding the date of sub-
mission of an application to become a member of 
the Association, in compliance with a require-
ment to undergo such criminal history record 
check as a condition for such licensure in the 
State, shall be deemed to have undergone a 
criminal history record check for purposes of 
subparagraph (A). 
‘‘(C) CRIMINAL
HISTORY
RECORD
CHECK 
REQUESTED BY ASSOCIATION.— 
‘‘(i) IN
GENERAL.—The Association 
shall, upon request by an insurance pro-
ducer licensed in a State, submit finger-
prints or other identification information 
obtained from the insurance producer, and 
a request for a criminal history record check 
of the insurance producer, to the Federal 
Bureau of Investigation. 
‘‘(ii) PROCEDURES.—The board of di-
rectors of the Association (referred to in this 
subtitle as the ‘Board’) shall prescribe pro-
cedures for obtaining and utilizing finger-
prints or other identification information 
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and criminal history record information, 
including the establishment of reasonable 
fees to defray the expenses of the Association 
in connection with the performance of a 
criminal history record check and appro-
priate safeguards for maintaining confiden-
tiality and security of the information. Any 
fees charged pursuant to this clause shall be 
separate and distinct from those charged by 
the Attorney General pursuant to subpara-
graph (I). 
‘‘(D) FORM
OF
REQUEST.—A submission 
under subparagraph (C)(i) shall include such 
fingerprints or other identification information 
as is required by the Attorney General con-
cerning the person about whom the criminal his-
tory record check is requested, and a statement 
signed by the person authorizing the Attorney 
General to provide the information to the Asso-
ciation and for the Association to receive the in-
formation. 
‘‘(E) PROVISION OF INFORMATION BY AT-
TORNEY
GENERAL.—Upon receiving a submis-
sion under subparagraph (C)(i) from the Asso-
ciation, the Attorney General shall search all 
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criminal history records of the Federal Bureau of 
Investigation, including records of the Criminal 
Justice Information Services Division of the Fed-
eral Bureau of Investigation, that the Attorney 
General determines appropriate for criminal his-
tory records corresponding to the fingerprints or 
other identification information provided under 
subparagraph (D) and provide all criminal his-
tory record information included in the request 
to the Association. 
‘‘(F) LIMITATION ON PERMISSIBLE USES OF 
INFORMATION.—Any information provided to the 
Association under subparagraph (E) may only— 
‘‘(i) be used for purposes of deter-
mining compliance with membership cri-
teria established by the Association; 
‘‘(ii) be disclosed to State insurance 
regulators, or Federal or State law enforce-
ment agencies, in conformance with appli-
cable law; or 
‘‘(iii) be disclosed, upon request, to the 
insurance producer to whom the criminal 
history record information relates. 
‘‘(G) PENALTY FOR IMPROPER USE OR DIS-
CLOSURE.—Whoever knowingly uses any infor-
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mation provided under subparagraph (E) for a 
purpose not authorized in subparagraph (F), or 
discloses any such information to anyone not au-
thorized to receive it, shall be fined not more 
than $50,000 per violation as determined by a 
court of competent jurisdiction. 
‘‘(H) RELIANCE ON INFORMATION.—Neither 
the Association nor any of its Board members, 
officers, or employees shall be liable in any ac-
tion for using information provided under sub-
paragraph (E) as permitted under subparagraph 
(F) in good faith and in reasonable reliance on 
its accuracy. 
‘‘(I) FEES.—The Attorney General may 
charge a reasonable fee for conducting the search 
and providing the information under subpara-
graph (E), and any such fee shall be collected 
and remitted by the Association to the Attorney 
General. 
‘‘(J) RULE OF CONSTRUCTION.—Nothing in 
this paragraph shall be construed as— 
‘‘(i) requiring a State insurance regu-
lator to perform criminal history record 
checks under this section; or 
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‘‘(ii) limiting any other authority that 
allows access to criminal history records. 
‘‘(K) REGULATIONS.—The Attorney General 
shall prescribe regulations to carry out this 
paragraph, which shall include— 
‘‘(i) appropriate protections for ensur-
ing the confidentiality of information pro-
vided under subparagraph (E); and 
‘‘(ii) procedures providing a reasonable 
opportunity for an insurance producer to 
contest the accuracy of information regard-
ing the insurance producer provided under 
subparagraph (E). 
‘‘(L) INELIGIBILITY FOR MEMBERSHIP.— 
‘‘(i) IN
GENERAL.—The Association 
may, under reasonably consistently applied 
standards, deny membership to an insur-
ance producer on the basis of criminal his-
tory record information provided under sub-
paragraph (E), or where the insurance pro-
ducer has been subject to disciplinary ac-
tion, as described in paragraph (2). 
‘‘(ii) RIGHTS OF APPLICANTS DENIED 
MEMBERSHIP.—The Association shall notify 
any insurance producer who is denied mem-
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bership on the basis of criminal history 
record information provided under subpara-
graph (E) of the right of the insurance pro-
ducer to— 
‘‘(I) obtain a copy of all criminal 
history record information provided to 
the Association under subparagraph 
(E) with respect to the insurance pro-
ducer; and 
‘‘(II) challenge the denial of mem-
bership based on the accuracy and 
completeness of the information. 
‘‘(M) DEFINITION.—For purposes of this 
paragraph, the term ‘criminal history record 
check’ means a national background check of 
criminal history records of the Federal Bureau of 
Investigation. 
‘‘(b) AUTHORITY TO ESTABLISH MEMBERSHIP CRI-
TERIA.—The Association may establish membership criteria 
that bear a reasonable relationship to the purposes for 
which the Association was established. 
‘‘(c) ESTABLISHMENT OF CLASSES AND CATEGORIES 
OF MEMBERSHIP.— 
‘‘(1) CLASSES OF MEMBERSHIP.—The Associa-
tion may establish separate classes of membership, 
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with separate criteria, if the Association reasonably 
determines that performance of different duties re-
quires different levels of education, training, experi-
ence, or other qualifications. 
‘‘(2) BUSINESS ENTITIES.—The Association shall 
establish a class of membership and membership cri-
teria for business entities. A business entity that ap-
plies 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 mem-
bership. 
‘‘(3) CATEGORIES.— 
‘‘(A) SEPARATE
CATEGORIES
FOR
INSUR-
ANCE PRODUCERS PERMITTED.—The Association 
may establish separate categories 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 DEPOSI-
TORY
INSTITUTIONS
PROHIBITED.—No special 
categories of membership, and no distinct mem-
bership criteria, shall be established for members 
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that are depository institutions or for employees, 
agents, or affiliates of depository institutions. 
‘‘(d) MEMBERSHIP CRITERIA.— 
‘‘(1) IN GENERAL.—The Association may estab-
lish criteria for membership which shall include 
standards for personal qualifications, education, 
training, and experience. The Association shall not es-
tablish criteria that unfairly limit the ability of a 
small insurance producer to become a member of the 
Association, including imposing discriminatory mem-
bership fees. 
‘‘(2) QUALIFICATIONS.—In establishing criteria 
under paragraph (1), the Association shall not adopt 
any qualification less protective to the public than 
that contained in the National Association of Insur-
ance 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 2013, 
and shall consider the highest levels of insurance pro-
ducer 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 inves-
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tigating and evaluating the eligibility of a pro-
spective member for membership in the Associa-
tion. 
‘‘(B) AUTHORIZATION
OF
INFORMATION 
SHARING.—A 
submission 
under 
subsection 
(a)(4)(C)(i) made by an insurance producer li-
censed 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 in-
formation. 
‘‘(C) RULE OF CONSTRUCTION.—Subpara-
graph (A) shall not be construed as requiring or 
authorizing any State to adopt new or addi-
tional requirements concerning the licensing or 
evaluation of insurance producers. 
‘‘(4) DENIAL OF MEMBERSHIP.—The Association 
may, based on reasonably consistently applied stand-
ards, deny membership to any State-licensed insur-
ance producer for failure to meet the membership cri-
teria established by the Association. 
‘‘(e) EFFECT OF MEMBERSHIP.— 
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forcement action related to the ability of a mem-
ber to engage in any activity within the scope of 
authority granted under this subsection and to 
all State laws, regulations, provisions, and ac-
tions preserved under paragraph (5). 
‘‘(2) VIOLENT
CRIME
CONTROL
AND
LAW
EN-
FORCEMENT 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. 
‘‘(3) AGENT FOR REMITTING FEES.—The Asso-
ciation shall act as an agent for any member for pur-
poses of remitting licensing fees to any State pursu-
ant to paragraph (1). 
‘‘(4) NOTIFICATION OF ACTION.— 
‘‘(A) IN GENERAL.—The Association shall 
notify the States (including State insurance reg-
ulators) and the NAIC when an insurance pro-
ducer 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 mem-
bership in the Association. 
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‘‘(B) ONGOING DISCLOSURES REQUIRED.— 
On an ongoing basis, the Association shall dis-
close 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 op-
erate in one or more States, or is no longer au-
thorized 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 subpara-
graph (B), to the extent that the State law, regu-
lation, provision, or other action is not incon-
sistent with the provisions of this subtitle related 
to market entry for nonresident insurance pro-
ducers, and then only to the extent of the incon-
sistency. 
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‘‘(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, insur-
ance producer conduct, or unfair trade 
practices; 
‘‘(ii) establish consumer protections; or 
‘‘(iii) require insurance producers to be 
appointed by a licensed or authorized in-
surer. 
‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso-
ciation shall be renewed on a biennial basis. 
‘‘(g) CONTINUING EDUCATION.— 
‘‘(1) IN GENERAL.—The Association shall estab-
lish, as a condition of membership, continuing edu-
cation requirements which shall be comparable to the 
continuing education requirements under the licens-
ing laws of a majority of the States. 
‘‘(2) STATE CONTINUING EDUCATION REQUIRE-
MENTS.—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. 
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‘‘(3) RECIPROCITY.—The Association shall not 
require a member to satisfy continuing education re-
quirements that are equivalent to any continuing 
education requirements of the home State of the mem-
ber that have been satisfied by the member during the 
applicable licensing period. 
‘‘(4) LIMITATION ON THE ASSOCIATION.—The As-
sociation 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 Asso-
ciation, or assess monetary fines or penalties, 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 sub-
ject to disciplinary action pursuant to a final 
adjudicatory proceeding under the jurisdiction of 
a State insurance regulator; 
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‘‘(C) an insurance license held by the insur-
ance producer has been suspended or revoked by 
a State insurance regulator; or 
‘‘(D) the insurance producer has been con-
victed 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 dis-
position from a court of competent jurisdiction. 
‘‘(2) VIOLATIONS OF ASSOCIATION STANDARDS.— 
The Association shall have the power to investigate al-
leged violations of Association standards. 
‘‘(3) REPORTING.—The Association shall imme-
diately 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 insur-
ance laws to the State insurance regulator where 
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the consumer resides and, when appropriate, to 
any additional State insurance regulator, as de-
termined by standards adopted by the Associa-
tion; and 
‘‘(B) make any related records and infor-
mation available to each State insurance regu-
lator to whom the complaint is forwarded. 
‘‘(2) TELEPHONE AND OTHER ACCESS.—The As-
sociation shall maintain a toll-free number for pur-
poses of this subsection and, as practicable, other al-
ternative means of communication with consumers, 
such as an Internet webpage. 
‘‘(3) FINAL DISPOSITION OF INVESTIGATION.— 
State insurance regulators shall provide the Associa-
tion 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 Asso-
ciation. 
‘‘(j) INFORMATION SHARING.—The Association may— 
‘‘(1) share documents, materials, or other infor-
mation, including confidential and privileged docu-
ments, with a State, Federal, or international govern-
mental entity or with the NAIC or other appropriate 
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‘‘(k) EFFECTIVE DATE.—The provisions of this section 
shall take effect on the later of— 
‘‘(1) the expiration of the 2-year period begin-
ning on the date of enactment of the National Asso-
ciation of Registered Agents and Brokers Reform Act 
of 2013; 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 supervise all activities of the Association. 
‘‘(b) POWERS.—The Board shall have such of the pow-
ers 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 ac-
cordance with the procedures established under Senate 
Resolution 116 of the 112th Congress, of whom— 
‘‘(A) 8 shall be State insurance commis-
sioners 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 in-
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surance commissioner Board member to serve as 
the chairperson of the Board; 
‘‘(B) 3 shall have demonstrated expertise 
and experience with property and casualty in-
surance producer licensing; and 
‘‘(C) 2 shall have demonstrated expertise 
and experience with life or health insurance pro-
ducer licensing. 
‘‘(2) STATE INSURANCE REGULATOR REPRESENT-
ATIVES.— 
‘‘(A) RECOMMENDATIONS.—Before making 
any 
appointments 
pursuant 
to 
paragraph 
(1)(A), the President shall request a list of rec-
ommended candidates from the States through 
the NAIC, which shall not be binding on the 
President. 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 appointments without consid-
ering the views of the NAIC. 
‘‘(B) POLITICAL
AFFILIATION.—Not more 
than 4 Board members appointed under para-
graph (1)(A) shall belong to the same political 
party. 
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‘‘(C) FORMER STATE INSURANCE COMMIS-
SIONERS.— 
‘‘(i) IN
GENERAL.—If, after offering 
each currently serving State insurance com-
missioner an appointment to the Board, 
fewer than 8 State insurance commissioners 
have accepted appointment to the Board, 
the President may appoint the remaining 
State insurance commissioner Board mem-
bers, as required under paragraph (1)(A), of 
the appropriate political party as required 
under subparagraph (B), from among indi-
viduals who are former State insurance 
commissioners. 
‘‘(ii) LIMITATION.—A former State in-
surance commissioner appointed as de-
scribed in clause (i) may not be employed 
by or have any present direct or indirect fi-
nancial interest in any insurer, insurance 
producer, or other entity in the insurance 
industry, other than direct or indirect own-
ership of, or beneficial interest in, an insur-
ance policy or annuity contract written or 
sold by an insurer. 
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‘‘(D) SERVICE
THROUGH
TERM.—If a 
Board member appointed under paragraph 
(1)(A) ceases to be a State insurance commis-
sioner 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 rep-
resenting the category of individuals described, which 
shall not be binding on the President. 
‘‘(4) STATE
INSURANCE
COMMISSIONER
DE-
FINED.—For purposes of this subsection, the term 
‘State insurance commissioner’ 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 
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at the time of the nomination of the subject 
Board members for— 
‘‘(i) 4 of the State insurance commis-
sioner Board members initially appointed 
under paragraph (1)(A), of whom not more 
than 2 shall belong to the same political 
party; 
‘‘(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 continue to serve after the expira-
tion 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 be-
fore 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 reappointed to successive terms. 
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‘‘(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 2014. 
‘‘(f) MEETINGS.— 
‘‘(1) IN GENERAL.—The Board shall meet— 
‘‘(A) at the call of the chairperson; 
‘‘(B) as requested in writing to the chair-
person by not fewer than 5 Board members; or 
‘‘(C) as otherwise provided by the bylaws of 
the Association. 
‘‘(2) QUORUM
REQUIRED.—A majority of all 
Board members shall constitute a quorum. 
‘‘(3) VOTING.—Decisions of the Board shall re-
quire the approval of a majority of all Board mem-
bers 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 ap-
pointed. 
‘‘(g) RESTRICTION ON CONFIDENTIAL INFORMATION.— 
Board members appointed pursuant to subparagraphs (B) 
and (C) of subsection (c)(1) shall not have access to con-
fidential information received by the Association in connec-
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tion with complaints, investigations, or disciplinary pro-
ceedings 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 con-
sultants. The code shall, at a minimum, include provisions 
that prohibit any Board member or Association officer, em-
ployee, agent or consultant from— 
‘‘(1) engaging in unethical conduct in the course 
of performing 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 enti-
ty other than the Association that is given because of 
the position held by the person in the Association; 
‘‘(4) making political contributions to any per-
son or entity on behalf of the Association; and 
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‘‘(5) lobbying or paying a person to lobby on be-
half of the Association. 
‘‘(i) COMPENSATION.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), no Board member may receive any com-
pensation 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 sub-
sistence, 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 AC-
TIONS. 
‘‘(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’). 
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‘‘(2) COPY REQUIRED TO BE FILED.—The Board 
shall submit to the President, through the Department 
of the Treasury, and the States (including State in-
surance 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 pur-
pose 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 Associa-
tion, 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 pro-
ceeding to determine whether membership shall be de-
nied, suspended, revoked, or not renewed, or to deter-
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mine 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 spe-
cific 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 determina-
tion to take disciplinary action shall be supported by 
a statement setting forth— 
‘‘(A) any act or practice in which the mem-
ber has been found to have been engaged; 
‘‘(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 sanction. 
‘‘(3) INELIGIBILITY
OF
PRIVATE
SECTOR
REP-
RESENTATIVES.—Board members appointed pursuant 
to section 324(c)(3) may not— 
‘‘(A) participate in any disciplinary action 
or be counted toward establishing a quorum dur-
ing a disciplinary action; and 
‘‘(B) have access to confidential information 
concerning any disciplinary action. 
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‘‘SEC. 326. POWERS. 
‘‘In addition to all the powers conferred upon a non-
profit corporation 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, proce-
dures, or standards governing the conduct of Associa-
tion business and performance of its duties; 
‘‘(3) establish procedures for providing notice 
and opportunity 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 com-
pensation, define their duties and give them appro-
priate authority to carry out the purposes of this sub-
title, and determine their qualification; 
‘‘(6) establish personnel policies of the Associa-
tion and programs relating to, among other things, 
conflicts of interest, rates of compensation, where ap-
plicable, and qualifications of personnel; 
‘‘(7) borrow money; and 
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‘‘(8) secure funding for such amounts as the As-
sociation 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 As-
sociation 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 business, 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 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. 328. LIABILITY OF THE ASSOCIATION AND THE 
BOARD MEMBERS, OFFICERS, AND EMPLOY-
EES OF THE ASSOCIATION. 
‘‘(a) IN GENERAL.—The Association shall not be 
deemed to be an insurer or insurance producer within the 
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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 provi-
sions imposing premium taxes, regulating insurer solvency 
or financial condition, establishing guaranty funds and lev-
ying assessments, or requiring claims settlement practices. 
‘‘(b) LIABILITY OF BOARD MEMBERS, OFFICERS, AND 
EMPLOYEES.—No Board member, officer, or employee of the 
Association 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 As-
sociation. 
‘‘SEC. 329. 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 subtitle 
or has failed to perform its duties under this subtitle, the 
President may remove the entire existing Board for the re-
mainder of the term to which the Board members were ap-
pointed and appoint, in accordance with section 324 and 
with the advice and consent of the Senate, in accordance 
with the procedures established under Senate Resolution 
116 of the 112th Congress, new Board members to fill the 
vacancies on the Board for the remainder of the terms. 
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‘‘(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, regu-
lations, provisions, or other actions purporting to regulate 
insurance producers shall be preempted to the extent pro-
vided 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 
producer or any affiliate plans to become, has 
applied to become, or is a member of the Associa-
tion; 
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‘‘(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. 
‘‘(2) STATES OTHER THAN A HOME STATE.—No 
State, other than the home State of a member of the 
Association, shall— 
‘‘(A) impose any licensing, personal or cor-
porate qualifications, education, training, expe-
rience, residency, continuing education, or bond-
ing requirement upon a member of the Associa-
tion that is different from the criteria for mem-
bership 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 the State, including 
any requirement that the insurance producer 
register as a foreign company with the secretary 
of state or equivalent State official; 
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‘‘(C) require that a member of the Associa-
tion 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 Associa-
tion to be authorized to operate as an insurance 
producer, in order to sell, solicit, or negotiate in-
surance for commercial property and casualty 
risks to an insured with risks located in more 
than one State, if the member is licensed or oth-
erwise 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 AU-
THORITY.—Nothing in this section may be construed 
to prohibit a State from investigating and taking ap-
propriate 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 
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after the insurance producer commenced doing busi-
ness in the State pursuant to Association member-
ship. 
‘‘SEC. 331. COORDINATION WITH FINANCIAL INDUSTRY 
REGULATORY AUTHORITY. 
‘‘The Association shall coordinate with the Financial 
Industry Regulatory Authority in order to ease any admin-
istrative burdens that fall on members of the Association 
that are subject to regulation 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 available avenues for resolution within the Asso-
ciation, commence a civil action in an appropriate United 
States district court, and obtain all appropriate relief. 
‘‘(b) ASSOCIATION INTERPRETATIONS.—In any action 
under subsection (a), the court shall give appropriate 
weight to the interpretation of the Association of its bylaws 
and standards and this subtitle. 
‘‘SEC. 333. FEDERAL FUNDING PROHIBITED. 
‘‘The Association may not receive, accept, or borrow 
any amounts from the Federal Government to pay for, or 
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