SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Terrorism Risk Insurance Program Reauthorization Act 
of 2015’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—EXTENSION OF TERRORISM INSURANCE PROGRAM 
Sec. 101. Extension of Terrorism Insurance Program. 
Sec. 102. Federal share. 
Sec. 103. Program trigger. 
Sec. 104. Recoupment of Federal share of compensation under the program. 
Sec. 105. Certification of acts of terrorism; consultation with Secretary of 
Homeland Security. 
Sec. 106. Technical amendments. 
Sec. 107. Improving the certification process. 
Sec. 108. GAO study. 
Sec. 109. Membership of Board of Governors of the Federal Reserve System. 
Sec. 110. Advisory Committee on Risk-Sharing Mechanisms. 
Sec. 111. Reporting of terrorism insurance data. 
Sec. 112. Annual study of small insurer market competitiveness. 
TITLE II—NATIONAL ASSOCIATION OF REGISTERED AGENTS AND 
BROKERS REFORM 
Sec. 201. Short title. 
Sec. 202. Reestablishment of the National Association of Registered Agents 
and Brokers. 
TITLE III—BUSINESS RISK MITIGATION AND PRICE 
STABILIZATION 
Sec. 301. Short title. 
Sec. 302. Margin requirements. 
Sec. 303. Implementation.
TITLE I—EXTENSION OF TER-
RORISM 
INSURANCE 
PRO-
GRAM 
SEC. 101. EXTENSION OF TERRORISM INSURANCE PRO-
GRAM. 
Section 108(a) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended by striking 
‘‘December 31, 2014’’ and inserting ‘‘December 31, 
2020’’. 
SEC. 102. FEDERAL SHARE. 
Section 103(e)(1)(A) of the Terrorism Risk Insur-
ance Act of 2002 (15 U.S.C. 6701 note) is amended by 
inserting ‘‘and beginning on January 1, 2016, shall de-
crease by 1 percentage point per calendar year until equal 
to 80 percent’’ after ‘‘85 percent’’. 
SEC. 103. PROGRAM TRIGGER. 
Subparagraph (B) of section 103(e)(1) (15 U.S.C. 
6701 note) is amended in the matter preceding clause 
(i)— 
(1) by striking ‘‘a certified act’’ and inserting 
‘‘certified acts’’; 
(2) by striking ‘‘such certified act’’ and insert-
ing ‘‘such certified acts’’; and
(3) by striking ‘‘exceed’’ and all that follows 
through clause (ii) and inserting the following: ‘‘ex-
ceed— 
‘‘(i) $100,000,000, with respect to 
such insured losses occurring in calendar 
year 2015; 
‘‘(ii) $120,000,000, with respect to 
such insured losses occurring in calendar 
year 2016; 
‘‘(iii) $140,000,000, with respect to 
such insured losses occurring in calendar 
year 2017; 
‘‘(iv) $160,000,000, with respect to 
such insured losses occurring in calendar 
year 2018; 
‘‘(v) $180,000,000, with respect to 
such insured losses occurring in calendar 
year 2019; and 
‘‘(vi) $200,000,000, with respect to 
such insured losses occurring in calendar 
year 2020 and any calendar year there-
after.’’.
SEC. 104. RECOUPMENT OF FEDERAL SHARE OF COM-
PENSATION UNDER THE PROGRAM. 
Section 103(e) of the Terrorism Risk Insurance Act 
of 2002 (15 U.S.C. 6701 note) is amended— 
(1) by amending paragraph (6) to read as fol-
lows: 
‘‘(6) INSURANCE
MARKETPLACE
AGGREGATE 
RETENTION AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (7), the insurance marketplace aggregate 
retention amount shall be the lesser of— 
‘‘(i) $27,500,000,000, as such amount 
is revised pursuant to this paragraph; and 
‘‘(ii) the aggregate amount, for all in-
surers, of insured losses during such cal-
endar year. 
‘‘(B) REVISION
OF
INSURANCE
MARKET-
PLACE AGGREGATE RETENTION AMOUNT.— 
‘‘(i) PHASE-IN.—Beginning in the cal-
endar year of enactment of the Terrorism 
Risk Insurance Program Reauthorization 
Act of 2015, the amount set forth under 
subparagraph (A)(i) shall increase by 
$2,000,000,000 per calendar year until 
equal to $37,500,000,000.
‘‘(ii) FURTHER REVISION.—Beginning 
in the calendar year that follows the cal-
endar year in which the amount set forth 
under subparagraph (A)(i) is equal to 
$37,500,000,000, the amount under sub-
paragraph (A)(i) shall be revised to be the 
amount equal to the annual average of the 
sum of insurer deductibles for all insurers 
participating in the Program for the prior 
3 calendar years, as such sum is deter-
mined by the Secretary under subpara-
graph (C). 
‘‘(C) RULEMAKING.—Not later than 3 
years after the date of enactment of the Ter-
rorism Risk Insurance Program Reauthoriza-
tion Act of 2015, the Secretary shall— 
‘‘(i) issue final rules for determining 
the amount of the sum described under 
subparagraph (B)(ii); and 
‘‘(ii) provide a timeline for public noti-
fication of such determination.’’; and 
(2) in paragraph (7)— 
(A) in subparagraph (A)— 
(i) in the matter preceding clause (i), 
by striking ‘‘for each of the periods re-
ferred to in subparagraphs (A) through 
(E) of paragraph (6)’’; and 
(ii) in clause (i), by striking ‘‘for such 
period’’; 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) [Reserved.]’’; 
(C) in subparagraph (C)— 
(i) by striking ‘‘occurring during any 
of the periods referred to in any of sub-
paragraphs (A) through (E) of paragraph 
(6), terrorism loss risk-spreading pre-
miums in an amount equal to 133 percent’’ 
and inserting ‘‘, terrorism loss risk-spread-
ing premiums in an amount equal to 140 
percent’’; and 
(ii) by inserting ‘‘as calculated under 
subparagraph 
(A)’’ 
after 
‘‘mandatory 
recoupment amount’’; and 
(D) in subparagraph (E)(i)— 
(i) in subclause (I)— 
(I) by striking ‘‘2010’’ and in-
serting ‘‘2017’’; and 
(II) by striking ‘‘2012’’ and in-
serting ‘‘2019’’;
(ii) in subclause (II)— 
(I) by striking ‘‘2011’’ and in-
serting ‘‘2018’’; 
(II) by striking ‘‘2012’’ and in-
serting ‘‘2019’’; and 
(III) by striking ‘‘2017’’ and in-
serting ‘‘2024’’; and 
(iii) in subclause (III)— 
(I) by striking ‘‘2012’’ and in-
serting ‘‘2019’’; and 
(II) by striking ‘‘2017’’ and in-
serting ‘‘2024’’. 
SEC. 105. CERTIFICATION OF ACTS OF TERRORISM; CON-
SULTATION WITH SECRETARY OF HOMELAND 
SECURITY. 
Paragraph (1)(A) of section 102 (15 U.S.C. 6701 
note) is amended in the matter preceding clause (i), by 
striking ‘‘concurrence with the Secretary of State’’ and in-
serting ‘‘consultation with the Secretary of Homeland Se-
curity’’. 
SEC. 106. TECHNICAL AMENDMENTS. 
The Terrorism Risk Insurance Act of 2002 (15 
U.S.C. 6701 note) is amended— 
(1) in section 102— 
(A) in paragraph (3)—
(i) by redesignating subparagraphs 
(A), (B), and (C) as clauses (i), (ii), and 
(iii), respectively; 
(ii) in the matter preceding clause (i) 
(as so redesignated), by striking ‘‘An enti-
ty has’’ and inserting the following: 
‘‘(A) IN GENERAL.—An entity has’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(B) RULE OF CONSTRUCTION.—An enti-
ty, including any affiliate thereof, does not have 
‘control’ over another entity, if, as of the date 
of enactment of the Terrorism Risk Insurance 
Program Reauthorization Act of 2015, the enti-
ty is acting as an attorney-in-fact, as defined by 
the Secretary, for the other entity and such 
other entity is a reciprocal insurer, provided 
that the entity is not, for reasons other than 
the attorney-in-fact relationship, defined as hav-
ing ‘control’ under subparagraph (A).’’; 
(B) in paragraph (7)— 
(i) by striking subparagraphs (A) 
through (F) and inserting the following: 
‘‘(A) the value of an insurer’s direct 
earned premiums during the immediately pre-
ceding calendar year, multiplied by 20 percent; 
and’’; 
(ii) by redesignating subparagraph 
(G) as subparagraph (B); and 
(iii) in subparagraph (B), as so redes-
ignated by clause (ii)— 
(I) by striking ‘‘notwithstanding 
subparagraphs (A) through (F), for 
the Transition Period or any Program 
Year’’ and inserting ‘‘notwithstanding 
subparagraph (A), for any calendar 
year’’; and 
(II) by striking ‘‘Period or Pro-
gram Year’’ and inserting ‘‘calendar 
year’’; 
(C) by striking paragraph (11); and 
(D) by redesignating paragraphs (12) 
through (16) as paragraphs (11) through (15), 
respectively; and 
(2) in section 103— 
(A) in subsection (b)(2)— 
(i) in subparagraph (B), by striking ‘‘, 
purchase,’’; and 
(ii) in subparagraph (C), by striking 
‘‘, purchase,’’;
(B) in subsection (c), by striking ‘‘Pro-
gram Year’’ and inserting ‘‘calendar year’’; 
(C) in subsection (e)— 
(i) in paragraph (1)(A), as previously 
amended by section 102— 
(I) by striking ‘‘the Transition 
Period 
and 
each 
Program 
Year 
through Program Year 4 shall be 
equal to 90 percent, and during Pro-
gram Year 5 and each Program Year 
thereafter’’ and inserting ‘‘each cal-
endar year’’; 
(II) by striking the comma after 
‘‘80 percent’’; and 
(III) by striking ‘‘such Transition 
Period or such Program Year’’ and 
inserting ‘‘such calendar year’’; 
(ii) in paragraph (2)(A), by striking 
‘‘the period beginning on the first day of 
the Transition Period and ending on the 
last day of Program Year 1, or during any 
Program Year thereafter’’ and inserting ‘‘a 
calendar year’’; and 
(iii) in paragraph (3), by striking ‘‘the 
period beginning on the first day of the
Transition Period and ending on the last 
day of Program Year 1, or during any 
other Program Year’’ and inserting ‘‘any 
calendar year’’; and 
(D) in subsection (g)(2)— 
(i) by striking ‘‘the Transition Period 
or a Program Year’’ each place that term 
appears and inserting ‘‘the calendar year’’; 
(ii) by striking ‘‘such period’’ and in-
serting ‘‘the calendar year’’; and 
(iii) by striking ‘‘that period’’ and in-
serting ‘‘the calendar year’’. 
SEC. 107. IMPROVING THE CERTIFICATION PROCESS. 
(a) DEFINITIONS.—As used in this section— 
(1) the term ‘‘act of terrorism’’ has the same 
meaning as in section 102(1) of the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note); 
(2) the term ‘‘certification process’’ means the 
process by which the Secretary determines whether 
to certify an act as an act of terrorism under section 
102(1) of the Terrorism Risk Insurance Act of 2002 
(15 U.S.C. 6701 note); and 
(3) the term ‘‘Secretary’’ means the Secretary 
of the Treasury.
(b) STUDY.—Not later than 9 months after the date 
of enactment of this Act, the Secretary shall conduct and 
complete a study on the certification process. 
(c) REQUIRED CONTENT.—The study required under 
subsection (a) shall include an examination and analysis 
of— 
(1) the establishment of a reasonable timeline 
by which the Secretary must make an accurate de-
termination on whether to certify an act as an act 
of terrorism; 
(2) the impact that the length of any timeline 
proposed to be established under paragraph (1) may 
have on the insurance industry, policyholders, con-
sumers, and taxpayers as a whole; 
(3) the factors the Secretary would evaluate 
and monitor during the certification process, includ-
ing the ability of the Secretary to obtain the re-
quired information regarding the amount of pro-
jected and incurred losses resulting from an act 
which the Secretary would need in determining 
whether to certify the act as an act of terrorism; 
(4) the appropriateness, efficiency, and effec-
tiveness of the consultation process required under 
section 102(1)(A) of the Terrorism Risk Insurance 
Act of 2002 (15 U.S.C. 6701 note) and any rec-
ommendations on changes to the consultation proc-
ess; and 
(5) the ability of the Secretary to provide guid-
ance and updates to the public regarding any act 
that may reasonably be certified as an act of ter-
rorism. 
(d) REPORT.—Upon completion of the study required 
under subsection (a), the Secretary shall submit a report 
on the results of such study to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Com-
mittee on Financial Services of the House of Representa-
tives. 
(e) RULEMAKING.—Section 102(1) of the Terrorism 
Risk Insurance Act of 2002 (15 U.S.C. 6701 note) is 
amended— 
(1) by redesignating subparagraph (D) as sub-
paragraph (E); and 
(2) by inserting after subparagraph (C) the fol-
lowing: 
‘‘(D) TIMING
OF
CERTIFICATION.—Not 
later than 9 months after the report required 
under section 107 of the Terrorism Risk Insur-
ance Program Reauthorization Act of 2015 is 
submitted to the appropriate committees of 
Congress, the Secretary shall issue final rules
governing the certification process, including es-
tablishing a timeline for which an act is eligible 
for certification by the Secretary on whether an 
act is an act of terrorism under this para-
graph.’’. 
SEC. 108. GAO STUDY. 
(a) STUDY.—Not later than 2 years after the date 
of enactment of this Act, the Comptroller General of the 
United States shall complete a study on the viability and 
effects of the Federal Government— 
(1) assessing and collecting upfront premiums 
on insurers that participate in the Terrorism Insur-
ance Program established under the Terrorism Risk 
Insurance Act of 2002 (15 U.S.C. 6701 note) (here-
after in this section referred to as the ‘‘Program’’), 
which shall 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 and manage such upfront premiums; 
(C) how the Federal Government could en-
sure that such upfront premiums are not spent 
for purposes other than claims through the Pro-
gram; 
(D) how the assessment and collection of 
such upfront premiums could affect take-up 
rates for terrorism risk coverage in different re-
gions and industries and how it could impact 
small businesses and consumers in both metro-
politan and non-metropolitan areas; 
(E) the effect of collecting such upfront 
premiums on insurers both large and small; 
(F) the effect of collecting such upfront 
premiums on the private market for terrorism 
risk reinsurance; and
(G) the size of any Federal Government 
subsidy insurers may receive through their par-
ticipation in the Program, taking into account 
the Program’s current post-event recoupment 
structure. 
(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 Insur-
ance 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 liquidity, 
insurance pricing, and capacity to provide ter-
rorism 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-
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 insur-
ance structures, including risk and administra-
tive costs; and 
(C) have established capital reserve funds 
to pay for the costs of terrorism insurance 
structures. 
(c) REPORT.—Upon completion of the study required 
under subsection (a), the Comptroller General shall sub-
mit a report on the results of such study to the Committee 
on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of 
Representatives. 
(d) PUBLIC AVAILABILITY.—The study and report 
required under this section shall be made available to the
public in electronic form and shall be published on the 
website of the Government Accountability Office. 
SEC. 109. MEMBERSHIP OF BOARD OF GOVERNORS OF THE 
FEDERAL RESERVE SYSTEM. 
(a) IN GENERAL.—The first undesignated paragraph 
of section 10 of the Federal Reserve Act (12 U.S.C. 241) 
is amended by inserting after the second sentence the fol-
lowing: ‘‘In selecting members of the Board, the President 
shall appoint at least 1 member with demonstrated pri-
mary experience working in or supervising community 
banks having less than $10,000,000,000 in total assets.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of enactment of 
this Act and apply to appointments made on and after 
that effective date, excluding any nomination pending in 
the Senate on that date. 
SEC. 110. ADVISORY COMMITTEE ON RISK-SHARING MECH-
ANISMS. 
(a) FINDING; RULE OF CONSTRUCTION.— 
(1) FINDING.—Congress finds that it is desir-
able to encourage the growth of nongovernmental, 
private market reinsurance capacity for protection 
against losses arising from acts of terrorism. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
Act, any amendment made by this Act, or the Ter-
rorism Risk Insurance Act of 2002 (15 U.S.C. 6701 
note) shall prohibit insurers from developing risk- 
sharing mechanisms to voluntarily reinsure terrorism 
losses between and among themselves. 
(b) ADVISORY COMMITTEE ON RISK-SHARING MECH-
ANISMS.— 
(1) ESTABLISHMENT.—The Secretary of the 
Treasury shall establish and appoint an advisory 
committee to be known as the ‘‘Advisory Committee 
on Risk-Sharing Mechanisms’’ (referred to in this 
subsection as the ‘‘Advisory Committee’’). 
(2) DUTIES.—The Advisory Committee shall 
provide advice, recommendations, and encourage-
ment with respect to the creation and development 
of the nongovernmental risk-sharing mechanisms de-
scribed under subsection (a). 
(3) MEMBERSHIP.—The Advisory Committee 
shall be composed of 9 members who are directors, 
officers, or other employees of insurers, reinsurers, 
or capital market participants that are participating 
or that desire to participate in the nongovernmental 
risk-sharing mechanisms described under subsection 
(a), and who are representative of the affected sec-
tors of the insurance industry, including commercial
property insurance, commercial casualty insurance, 
reinsurance, and alternative risk transfer industries. 
SEC. 111. REPORTING OF TERRORISM INSURANCE DATA. 
Section 104 (15 U.S.C. 6701 note) is amended by 
adding at the end the following new subsection: 
‘‘(h) 
REPORTING
OF
TERRORISM
INSURANCE 
DATA.— 
‘‘(1) AUTHORITY.—During the calendar year 
beginning on January 1, 2016, and in each calendar 
year thereafter, the Secretary shall require insurers 
participating in the Program to submit to the Sec-
retary such information regarding insurance cov-
erage for terrorism losses of such insurers as the 
Secretary considers appropriate to analyze the effec-
tiveness of the Program, which shall include infor-
mation regarding— 
‘‘(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
‘‘(G) such other matters as the Secretary 
considers appropriate. 
‘‘(2) REPORTS.—Not later than June 30, 2016, 
and every other June 30 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 cov-
erage for acts of terrorism; 
‘‘(D) an evaluation of the impact of the 
Program on workers’ compensation insurers; 
and 
‘‘(E) in the case of the data reported in 
paragraph (1)(B), an updated estimate of the 
total amount earned since January 1, 2003.
‘‘(3) PROTECTION
OF
DATA.—To the extent 
possible, the Secretary shall contract with an insur-
ance statistical aggregator to collect the information 
described in paragraph (1), which shall keep any 
nonpublic 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 col-
lecting any data or information under paragraph (1) 
from an insurer, or affiliate of an insurer, the Sec-
retary shall coordinate with the appropriate State in-
surance regulatory authorities and any relevant gov-
ernment agency or publicly available sources to de-
termine 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 Sec-
retary determines that such data or information is 
available, and may be obtained in a timely 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 
submission of any non-publicly available data 
and information to the Secretary and the shar-
ing of any non-publicly available data with or 
by the Secretary among other Federal agencies, 
the State insurance regulatory authorities, 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 information is oth-
erwise 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 
or information to the Secretary, regarding the 
privacy or confidentiality of any data or infor-
mation in the possession of the source to the 
Secretary, shall continue to apply to such data 
or information after the data or information 
has been provided pursuant to this subsection.
‘‘(C) 
INFORMATION-SHARING
AGREE-
MENT.—Any data or information obtained by 
the Secretary under this subsection may be 
made available to State insurance regulatory 
authorities, individually or collectively through 
an information-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 
Federal or State law (including any privi-
lege 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 
under this subsection to the Secretary by an in-
surer or affiliate of an insurer.’’. 
SEC. 112. ANNUAL STUDY OF SMALL INSURER MARKET 
COMPETITIVENESS. 
Section 108 (15 U.S.C. 6701 note) is amended by 
adding at the end the following new subsection:
‘‘(h) STUDY OF SMALL INSURER MARKET COMPETI-
TIVENESS.— 
‘‘(1) IN GENERAL.—Not later than June 30, 
2017, and every other June 30 thereafter, the Sec-
retary shall conduct a study of small insurers (as 
such term is defined by regulation by the Secretary) 
participating in the Program, and identify any com-
petitive challenges small insurers face in the ter-
rorism risk insurance marketplace, including— 
‘‘(A) changes to the market share, pre-
mium volume, and policyholder surplus of small 
insurers 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; 
‘‘(C) the impact of the Program’s manda-
tory availability requirement under section 
103(c) on small insurers; 
‘‘(D) the effect of increasing the trigger 
amount 
for 
the 
Program 
under 
section 
103(e)(1)(B) on small insurers; 
‘‘(E) the availability and cost of private re-
insurance for small insurers; and
‘‘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 sub-
title, be subject to, and have all the powers conferred 
upon, a nonprofit corporation by the District of Co-
lumbia 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 edu-
cation, and other nonresident insurance producer quali-
fication requirements and conditions may be adopted and 
applied on a multi-state basis without affecting the laws,
rules, and 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 
Association. 
‘‘(2) INELIGIBILITY FOR SUSPENSION OR REV-
OCATION OF LICENSE.—Subject to paragraph (3), 
an insurance producer is not eligible to become a
member of the Association if a State insurance regu-
lator has suspended or revoked the insurance license 
of the insurance 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 
competent jurisdiction. 
‘‘(4) CRIMINAL HISTORY RECORD CHECK RE-
QUIRED.— 
‘‘(A) IN
GENERAL.—An insurance pro-
ducer who is an individual shall not be eligible 
to become a member of the Association unless 
the insurance producer has undergone a crimi-
nal history record check that complies with reg-
ulations prescribed by the Attorney General of 
the United States under subparagraph (K). 
‘‘(B) CRIMINAL HISTORY RECORD CHECK 
REQUESTED
BY
HOME
STATE.—An insurance
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 re-
quirement 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 
procedures for obtaining and utilizing fin-
gerprints or other identification informa-
tion and criminal history record informa-
tion, including the establishment of reason-
able fees to defray the expenses of the As-
sociation in connection with the perform-
ance of a criminal history record check and 
appropriate safeguards for maintaining 
confidentiality and security of the informa-
tion. Any fees charged pursuant to this 
clause shall be separate and distinct from 
those charged by the Attorney General 
pursuant to subparagraph (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 
history record check is requested, and a state-
ment signed by the person authorizing the At-
torney General to provide the information to 
the Association and for the Association to re-
ceive the information. 
‘‘(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
criminal history records of the Federal Bureau 
of Investigation, including records of the Crimi-
nal Justice Information Services Division of the 
Federal Bureau of Investigation, that the At-
torney General determines appropriate for 
criminal history records corresponding to the 
fingerprints or other identification information 
provided under subparagraph (D) and provide 
all criminal history 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 en-
forcement agencies, in conformance with 
applicable law; or 
‘‘(iii) be disclosed, upon request, to 
the insurance producer to whom the crimi-
nal history record information relates.
‘‘(G) PENALTY
FOR
IMPROPER
USE
OR 
DISCLOSURE.—Whoever knowingly uses any in-
formation provided under subparagraph (E) for 
a purpose not authorized in subparagraph (F), 
or discloses any such information to anyone not 
authorized 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.—Nei-
ther the Association nor any of its Board mem-
bers, officers, or employees shall be liable in 
any action for using information provided under 
subparagraph (E) as permitted under subpara-
graph (F) in good faith and in reasonable reli-
ance on its accuracy. 
‘‘(I) FEES.—The Attorney General may 
charge a reasonable fee for conducting the 
search and providing the information under 
subparagraph (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 
‘‘(ii) limiting any other authority that 
allows access to criminal history records. 
‘‘(K) REGULATIONS.—The Attorney Gen-
eral 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 reason-
able opportunity for an insurance producer 
to contest the accuracy of information re-
garding 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 
subparagraph (E), or where the insurance 
producer has been subject to disciplinary 
action, as described in paragraph (2).
‘‘(ii) RIGHTS OF APPLICANTS DENIED 
MEMBERSHIP.—The Association shall no-
tify any insurance producer who is denied 
membership on the basis of criminal his-
tory record information provided under 
subparagraph (E) of the right of the insur-
ance producer 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 
membership 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 cri-
teria 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, 
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 member-
ship criteria for business entities. A business entity 
that applies for membership shall be required to des-
ignate an individual Association member responsible 
for the compliance of the business entity with Asso-
ciation standards and the insurance laws, standards, 
and regulations of any State in which the business 
entity seeks to do business on the basis of Associa-
tion membership. 
‘‘(3) CATEGORIES.— 
‘‘(A) SEPARATE CATEGORIES FOR INSUR-
ANCE
PRODUCERS
PERMITTED.—The Associa-
tion may establish separate categories of mem-
bership 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 mem-
bers that are depository institutions or for em-
ployees, agents, or affiliates of depository insti-
tutions. 
‘‘(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 
establish 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 Associa-
tion of Registered Agents and Brokers Reform Act 
of 2015, and shall consider the highest levels of in-
surance 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 inves-
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 Associa-
tion may, based on reasonably consistently applied 
standards, deny membership to any State-licensed 
insurance producer for failure to meet the member-
ship 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 insur-
ance producer, and exercise all such incidental 
powers as shall be necessary to carry out such 
activities, including claims adjustments and set-
tlement to the extent permissible under the laws 
of the State, risk management, employee bene-
fits advice, retirement planning, and any other 
insurance-related consulting activities; 
‘‘(B) be the equivalent of a nonresident in-
surance producer license for purposes of author-
izing the insurance producer to engage in the 
activities described in subparagraph (A) in any
State where the member pays the licensing fee; 
and 
‘‘(C) be the equivalent of a nonresident in-
surance producer license for the purpose of sub-
jecting an insurance producer to all laws, regu-
lations, provisions or other action of any State 
concerning revocation, suspension, or other en-
forcement 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 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 
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 in-
surance 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 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 author-
ized 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
PROTEC-
TION AND MARKET CONDUCT REGULATION.— 
‘‘(A) IN GENERAL.—No provision of this 
section shall be construed as altering or affect-
ing the applicability or continuing effectiveness 
of any law, regulation, provision, or other action 
of any State, including those described in sub-
paragraph (B), to the extent that the State law, 
regulation, provision, or other action is not in-
consistent with the provisions of this subtitle re-
lated to market entry for nonresident insurance 
producers, and then only to the extent of the in-
consistency. 
‘‘(B) 
PRESERVED
REGULATIONS.—The 
laws, regulations, provisions, or other actions of 
any State referred to in subparagraph (A) in-
clude laws, regulations, provisions, or other ac-
tions 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 
insurer. 
‘‘(f) BIENNIAL RENEWAL.—Membership in the Asso-
ciation shall be renewed on a biennial basis. 
‘‘(g) CONTINUING EDUCATION.— 
‘‘(1) IN GENERAL.—The Association shall es-
tablish, as a condition of membership, continuing 
education requirements which shall be comparable to
the continuing education requirements under the li-
censing 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. 
‘‘(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 
member that have been satisfied by the member dur-
ing the applicable licensing period. 
‘‘(4) LIMITATION ON THE ASSOCIATION.—The 
Association shall not directly or indirectly offer any 
continuing education courses for insurance pro-
ducers. 
‘‘(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 As-
sociation, or assess monetary fines or penalties, as 
the Association determines to be appropriate, if—
nated, or when the Association has assessed mone-
tary fines or penalties. 
‘‘(i) CONSUMER COMPLAINTS.— 
‘‘(1) IN GENERAL.—The Association shall— 
‘‘(A) refer any complaint against a mem-
ber of the Association from a consumer relating 
to alleged misconduct or violations of State in-
surance laws to the State insurance regulator 
where the consumer resides and, when appro-
priate, to any additional State insurance regu-
lator, as determined by standards adopted by 
the Association; 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 
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 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 As-
sociation. 
‘‘(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 gov-
ernmental entity or with the NAIC or other appro-
priate 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 document, material, or other informa-
tion; 
‘‘(2) limit the sharing of information as re-
quired under this subtitle with the NAIC or any 
other non-governmental entity, in circumstances 
under which the Association determines that the 
sharing of such information is unnecessary to fur-
ther the purposes of this subtitle; 
‘‘(3) establish a central clearinghouse, or utilize 
the NAIC or another appropriate entity, as deter-
mined 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 oper-
ate 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 database, for use by the Associa-
tion and the States (including State insurance regu-
lators) for the collection of regulatory information 
concerning the activities of insurance producers. 
‘‘(k) EFFECTIVE DATE.—The provisions of this sec-
tion 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 2015; and 
‘‘(2) the date of incorporation of the Associa-
tion. 
‘‘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 
powers and authority of the Association as may be speci-
fied in the bylaws of the Association. 
‘‘(c) COMPOSITION.—
‘‘(1) IN GENERAL.—The Board shall consist of 
13 members who shall be appointed by the Presi-
dent, by and with the advice and consent of the Sen-
ate, in accordance 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 
insurance 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 
producer licensing. 
‘‘(2) STATE
INSURANCE
REGULATOR
REP-
RESENTATIVES.— 
‘‘(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 
considering 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. 
‘‘(C) FORMER STATE INSURANCE COMMIS-
SIONERS.— 
‘‘(i) IN GENERAL.—If, after offering 
each currently serving State insurance 
commissioner 
an 
appointment 
to 
the 
Board, fewer than 8 State insurance com-
missioners 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 individuals who are former 
State insurance commissioners.
‘‘(ii) LIMITATION.—A former State 
insurance 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 in-
surance 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 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 
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 oc-
curring 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 reappointed 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 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 
appointed. 
‘‘(g) RESTRICTION
ON CONFIDENTIAL INFORMA-
TION.—Board members appointed pursuant to subpara-
graphs (B) and (C) of subsection (c)(1) shall not have ac-
cess to confidential information received by the Associa-
tion in connection with complaints, investigations, or dis-
ciplinary 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 provi-
sions that prohibit any Board member or Association offi-
cer, employee, 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 finan-
cial effect, distinguishable from its effect on the pub-
lic generally, on the person or a member of the im-
mediate 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 
‘‘(5) lobbying or paying a person to lobby on 
behalf 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 As-
sociation for travel expenses, including per diem in 
lieu of subsistence, at rates consistent with rates au-
thorized 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 performance of services for the Associa-
tion. 
‘‘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 sub-
chapter II of chapter 5 of title 5, United States 
Code (commonly known as the ‘Administrative Pro-
cedure Act’). 
‘‘(2) COPY
REQUIRED
TO
BE
FILED.—The 
Board shall submit to the President, through the 
Department of the Treasury, and the States (includ-
ing 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 Asso-
ciation, 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 Asso-
ciation, shall take effect, after notice under para-
graph (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 (com-
monly 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 
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 as-
sess fines or monetary penalties, the Association 
shall bring specific charges, notify the member of 
the charges, give the member an opportunity to de-
fend 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 pursu-
ant 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 informa-
tion concerning any disciplinary action. 
‘‘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 Asso-
ciation 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 special-
ists, and elect or appoint officers, and to fix their 
compensation, define their duties and give them ap-
propriate authority to carry out the purposes of this 
subtitle, 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 
applicable, and qualifications of personnel; 
‘‘(7) borrow money; and 
‘‘(8) secure funding for such amounts as the 
Association determines to be necessary and appro-
priate to organize and begin operations of the Asso-
ciation, 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 business, and the exer-
cise of the other rights and powers granted by this sub-
title, during such fiscal year. 
‘‘(b) FINANCIAL STATEMENTS.—Each report sub-
mitted 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. 
‘‘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 
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 pro-
visions imposing premium taxes, regulating insurer sol-
vency 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 em-
ployee 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 con-
nection with the Association. 
‘‘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 sub-
title 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 
Resolution 116 of the 112th Congress, new Board mem-
bers 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 Presi-
dent for such purpose, may suspend the effectiveness of 
any bylaw or standard, or prohibit any action, of the Asso-
ciation 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 reg-
ulate insurance producers 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 ac-
tion against, or apply any provision of law or 
regulation arbitrarily or discriminatorily to, any 
insurance producer because that insurance pro-
ducer or any affiliate plans to become, has ap-
plied to become, or is a member of the Associa-
tion; 
‘‘(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 
bonding requirement upon a member of the As-
sociation that is different from the criteria for 
membership 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 sec-
retary of state or equivalent State official; 
‘‘(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 As-
sociation to be authorized to operate as an in-
surance producer, in order to sell, solicit, or ne-