[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2554 Engrossed in House (EH)]

111th CONGRESS
  2d Session
                                H. R. 2554

_______________________________________________________________________

                                 AN ACT


 
 To reform the National Association of Registered Agents and Brokers, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Association of Registered 
Agents and Brokers Reform Act of 2010''.

SEC. 2. REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF REGISTERED 
              AGENTS AND BROKERS.

    (a) In General.--Subtitle C of title III of the Gramm-Leach-Bliley 
Act (15 U.S.C. 6751 et seq.) is amended to read as follows:

  ``Subtitle C--National Association of Registered Agents and Brokers

``SEC. 321. NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS.

    ``(a) Establishment.--There is established the National Association 
of Registered Agents and Brokers (hereafter in this subtitle referred 
to as the `Association').
    ``(b) Status.--The Association shall--
            ``(1) be a nonprofit corporation;
            ``(2) have succession until dissolved by an Act of 
        Congress;
            ``(3) not be an agent or instrumentality of the United 
        States Government; 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.).

``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 requirements and conditions can be 
adopted and applied on a multi-state basis (without affecting the laws, 
rules, and regulations pertaining to resident insurance producers or 
appointments or producing a net loss of producer licensing revenues to 
States), while preserving the right of States to license, supervise, 
discipline, and establish licensing fees for insurance producers, and 
to prescribe and enforce laws and regulations with regard to insurance-
related consumer protection and unfair trade practices.

``SEC. 323. MEMBERSHIP.

    ``(a) Eligibility.--
            ``(1) In general.--Any insurance producer licensed 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 revocation of 
        license.--Subject to paragraph (3), an insurance producer is 
        not eligible to become a member of the Association if a State 
        insurance regulator has suspended or revoked such producer's 
        license in that State during the 3-year period preceding the 
        date on which such producer applies for membership.
            ``(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 such producer in the State in 
                which the license was suspended or revoked; or
                    ``(B) the suspension or revocation is subsequently 
                overturned.
            ``(4) Criminal background record check required.--
                    ``(A) In general.--An insurance producer shall not 
                be eligible to become a member of the Association 
                unless the producer has undergone a national criminal 
                background record check that complies with regulations 
                prescribed by the Attorney General under subparagraph 
                (L).
                    ``(B) Criminal background record check requested by 
                home state.--An insurance producer who is licensed in a 
                State and who has undergone a national criminal 
                background record check in compliance with such 
                requirements as a condition for such licensure shall be 
                deemed to have undergone a national criminal background 
                record check for purposes of subparagraph (A).
                    ``(C) Criminal background record check requested by 
                association.--
                            ``(i) In general.--The Association shall, 
                        upon request by an insurance producer licensed 
                        in a State, submit identification information 
                        obtained from such producer, and a request for 
                        a national criminal background record check of 
                        such producer, to the Federal Bureau of 
                        Investigation.
                            ``(ii) Bylaws or rules.--The board of 
                        directors of the Association shall prescribe 
                        bylaws or rules for obtaining and utilizing 
                        identification information and criminal history 
                        record information, including the establishment 
                        of reasonable fees required to perform a 
                        criminal background record check and 
                        appropriate safeguards for maintaining 
                        confidentiality and security of the 
                        information.
                    ``(D) Form of request.--A submission under 
                subparagraph (C)(i) shall include such identification 
                information as required by the Attorney General 
                concerning the person about whom the record is 
                requested and a statement signed by the person 
                authorizing the Association to obtain the information.
                    ``(E) Provision of information by attorney 
                general.--Upon receiving a submission under 
                subparagraph (C)(ii) from the Association, the Attorney 
                General shall search all records of the Criminal 
                Justice Information Services Division of the Federal 
                Bureau of Investigation that the Attorney General deems 
                appropriate for criminal history records corresponding 
                to the identification information provided under 
                subparagraph (D) and provide all information contained 
                in such records that pertains to the request to the 
                Association.
                    ``(F) Limitation on permissible uses of 
                information.--The Association may use information 
                provided under subparagraph (E) only--
                            ``(i) for purposes of determining 
                        compliance with membership criteria established 
                        by the Association;
                            ``(ii) to disclose to State insurance 
                        regulators, or Federal or State law enforcement 
                        agencies, in conformance with applicable law.
                    ``(G) Applicant access to criminal history 
                records.--Notwithstanding subparagraph (F), a producer 
                shall have the right to obtain from the Association a 
                copy of any criminal history record information 
                concerning the producer that is provided to the 
                Association under subparagraph (E).
                    ``(H) Penalty for improper use or disclosure.-- 
                Whoever knowingly uses any information 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 
                under title 18, United States Code, imprisoned for not 
                more than 2 years, or both .
                    ``(I) Reliance on information.--Neither the 
                Association nor any of its directors, officers, or 
                employees shall be liable in any action for using 
                information provided under subparagraph (E) as 
                permitted under subparagraph (F) in good faith and in 
                reasonable reliance on its accuracy.
                    ``(J) Fees.--The Attorney General may charge a 
                reasonable fee to defray the expense of conducting the 
                search and providing the information under subparagraph 
                (E), and any such fee shall be collected and remitted 
                by the Association.
                    ``(K) Rule of construction.--Nothing in this 
                paragraph shall be construed as--
                            ``(i) requiring a State insurance regulator 
                        to perform criminal background checks under 
                        this section; or
                            ``(ii) limiting any other authority that 
                        allows access to criminal background records.
                    ``(L) Regulations.--The Attorney General shall 
                prescribe regulations to carry out this paragraph, 
                which shall include--
                            ``(i) appropriate protections for ensuring 
                        the confidentiality of information provided 
                        under subparagraph (E); and
                            ``(ii) procedures providing a reasonable 
                        opportunity for a producer to contest the 
                        accuracy of information regarding the producer 
                        provided under subparagraph (E).
                    ``(M) Ineligibility for membership.--
                            ``(i) In general.--The Association may, 
                        under reasonably consistently applied 
                        standards, deny membership to an insurance 
                        producer on the basis of criminal history 
                        information provided under subparagraph (E).
                            ``(ii) Rights of applicants denied 
                        membership.--The Association shall notify any 
                        producer who is denied membership on the basis 
                        of criminal history record information provided 
                        under subparagraph (E) of the right of the 
                        producer to--
                                    ``(I) obtain a copy of all criminal 
                                history record information provided to 
                                the Association under subparagraph (E) 
                                with respect to the producer; and
                                    ``(II) challenge the accuracy and 
                                completeness of the information.
    ``(b) Authority To Establish Membership Criteria.--The Association 
may establish membership criteria that--
            ``(1) bear a reasonable relationship to the purposes for 
        which the Association was established; and
            ``(2) do not unfairly limit the access of smaller agencies 
        to the Association membership, including imposing 
        discriminatory membership fees on smaller insurance producers.
    ``(c) Establishment of Classes and Categories of Membership.--
            ``(1) Classes of membership.--The Association may establish 
        separate classes of membership, with separate criteria, if the 
        Association reasonably determines that performance of different 
        duties requires different levels of education, training, 
        experience, or other qualifications.
            ``(2) Categories.--
                    ``(A) Separate categories for producers 
                permitted.--The Association may establish separate 
                categories of membership for producers and for other 
                persons within each class, based on the types of 
                licensing categories that exist under State laws.
                    ``(B) Separate treatment for depository 
                institutions prohibited.--No special categories of 
                membership, and no distinct membership criteria, shall 
                be established for members which are depository 
                institutions or for employees, agents, or affiliates of 
                depository institutions.
    ``(d) Membership Criteria.--
            ``(1) In general.--The Association may establish criteria 
        for membership which shall include standards for personal 
        qualifications, education, training, and experience.
            ``(2) Qualifications.--In establishing criteria under 
        paragraph (1), the Association shall consider the NAIC Producer 
        Licensing Model Act and the highest levels of insurance 
        producer qualifications established under the licensing laws of 
        the States.
            ``(3) Assistance from states.--
                    ``(A) In general.--The Association may request a 
                State to provide assistance in investigating and 
                evaluating a prospective member's eligibility for 
                membership in the Association.
                    ``(B) Rule of construction.--Subparagraph (A) shall 
                not be construed as requiring or authorizing any State 
                to adopt new or additional requirements concerning the 
                licensing or evaluation of insurance producers.
            ``(4) Denial of membership.--The Association may, based on 
        reasonably consistently applied standards, deny membership to 
        any State-licensed insurance producer for failure to meet the 
        membership criteria established by the Association.
    ``(e) Effect of Membership.--
            ``(1) Authority of association members.--Membership in the 
        Association shall--
                    ``(A) authorize an insurance producer to sell, 
                solicit, negotiate, effect, procure, deliver, renew, 
                continue, or bind insurance in any State for which the 
                member pays the licensing fee set by such State for any 
                line or lines of insurance specified in such producer's 
                home State license, and exercise all such incidental 
                powers, as shall be necessary to carry out such 
                activities, including claims adjustments and 
                settlement, risk management, employee benefits advice, 
                retirement planning, and any other insurance-related 
                consulting activities;
                    ``(B) be the equivalent of a nonresident insurance 
                producer license issued in any State where the member 
                pays the licensing fee; and
                    ``(C) subject an insurance producer to all laws, 
                regulations, provisions or other action of any State 
                concerning revocation or suspension of a member's 
                ability 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) Duplicative licenses.--No State, other than the 
        member's home State, may require an individual member to obtain 
        a business entity license or membership in order to engage in 
        any activity within the scope of authority granted in paragraph 
        (1) or in order for the member or any employer, employee, or 
        affiliate of the member to receive compensation for the 
        member's performance of any such activity.
            ``(3) Agent for remitting fees.--The Association shall act 
        as any member's agent for purposes of remitting licensing fees 
        to any State pursuant to paragraph (1).
            ``(4) Regulator notification.--The Association shall notify 
        the National Association of Insurance Commissioners 
        (hereinafter in this subtitle referred to as the `NAIC') or its 
        designee when a producer becomes a member and identify, on an 
        ongoing basis, the States in which the member is authorized to 
        operate.
            ``(5) Preservation of state consumer protection and market 
        conduct regulation.--No provision of this section shall be 
        construed as altering or affecting the continuing effectiveness 
        of any law, regulation, provision, or other action of any State 
        which purports to regulate market conduct or unfair trade 
        practices or establish consumer protections to the extent that 
        such law, regulation, provision, or other action is not 
        inconsistent with the provisions of this subtitle, and then 
        only to the extent of such inconsistency.
    ``(f) Biennial Renewal.--Membership in the Association shall be 
renewed on a biennial basis.
    ``(g) Continuing Education.--
            ``(1) In general.--The Association shall establish, as a 
        condition of membership, continuing education requirements 
        which shall be comparable to the continuing education 
        requirements under the licensing laws of a majority of the 
        States.
            ``(2) State continuing education requirements.--A member 
        may not be required to satisfy continuing education 
        requirements imposed under the laws, regulations, provisions, 
        or actions of any State other than such member's home State.
            ``(3) Reciprocity.--The Association shall not require a 
        member to satisfy continuing education requirements that are 
        equivalent to any continuing education requirements of the 
        member's home State that have been satisfied by the member 
        during the applicable licensing period.
            ``(4) Limitation on association.--The Association shall not 
        directly or indirectly offer any continuing education courses 
        for insurance producers.
    ``(h) Probation, Suspension and Revocation.--
            ``(1) Disciplinary action.--The Association may place an 
        insurance producer that is a member of the Association on 
        probation or suspend or revoke such producer's membership in 
        the Association, as the Association determines to be 
        appropriate, if--
                    ``(A) the producer fails to meet the applicable 
                membership criteria of the Association; or
                    ``(B) the producer has been subject to disciplinary 
                action pursuant to a final adjudicatory proceeding 
                under the jurisdiction of a State insurance regulator.
            ``(2) Reporting to state regulators.--The Association shall 
        notify the NAIC or its designee when a producer's membership 
        has been suspended, revoked, and otherwise terminated.
    ``(i) Consumer Complaints.--
            ``(1) In general.--The Association shall--
                    ``(A) receive and, when appropriate, investigate 
                complaints from both consumers and State insurance 
                regulators related to members of the Association;
                    ``(B) refer any proper complaint received in 
                accordance with subparagraph (A) and make any related 
                records and information available to the NAIC or its 
                designee and to each State insurance regulator for the 
                State of residence of the consumer who filed the 
                complaint; and
                    ``(C) refer, when appropriate, any such complaint 
                to any additional appropriate State insurance 
                regulator.
            ``(2) Telephone and other access.--The Association shall 
        maintain a toll-free telephone number for the purpose of this 
        subsection and, as practicable, other alternative means of 
        communication with consumers, such as an Internet web page.

``SEC. 324. BOARD OF DIRECTORS.

    ``(a) Establishment.--There is established the board of directors 
of the Association (hereafter in this subtitle referred to as the 
`Board'), which shall have authority to govern and supervise all 
activities of the Association.
    ``(b) Powers.--The Board shall have such of the Association's 
powers and authority as may be specified in the bylaws of the 
Association.
    ``(c) Composition.--
            ``(1) In general.--The Board shall consist of 11 members 
        who shall be appointed by the President, by and with the advice 
        and consent of the Senate, of whom--
                    ``(A) 6 shall be State insurance commissioners 
                appointed in the manner provided in paragraph (2),
                    ``(B) 2 shall be representatives of property and 
                casualty insurance producers,
                    ``(C) 1 shall be a representative of life or health 
                insurance producers,
                    ``(D) 1 shall be a representative of property and 
                casualty insurers, and
                    ``(E) 1 shall be a representative of life or health 
                insurers.
            ``(2) State insurance regulator representatives.--
                    ``(A) Before making any appointments pursuant to 
                subparagraph (A) of paragraph (1), the President shall 
                request a list of recommended candidates from the NAIC, 
                which shall not be binding on the President. If the 
                NAIC fails to submit list of recommendations within 15 
                days of the request, the President may make the 
                requisite appointments without considering the views of 
                the NAIC.
                    ``(B) Not more than 3 members appointed to 
                membership on the Board pursuant to subparagraph (A) of 
                paragraph (1) shall belong to the same political party.
                    ``(C) If fewer than 6 State insurance commissioners 
                accept appointment to the Board, the President may 
                appoint the remaining State insurance commissioner 
                members of the Board from among individuals who are 
                former State insurance commissioners, provided that any 
                former insurance commissioner so appointed shall not be 
                employed by or have a present direct or indirect 
                financial interest in any insurer or other entity in 
                the insurance industry other than direct or indirect 
                ownership of, or beneficial interest in, an insurance 
                policy or annuity contract written or sold by an 
                insurer.
            ``(3) Private sector representatives.--In making any 
        appointments pursuant to subparagraphs (B) through (E) of 
        paragraph (1), the President may seek recommendations for 
        candidates from national trade associations representing the 
        category of individuals described, which shall not be binding 
        on the President.
            ``(4) State insurance commissioner defined.--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 
        principal insurance regulatory authority for the State.
    ``(d) Terms.--
            ``(1) In general.--The term of each Board member shall be 
        for 2 years, except that--
                    ``(A) the term of--
                            ``(i) 3 of the State insurance commissioner 
                        members of the Board initially appointed under 
                        subparagraph (A) of paragraph (1),
                            ``(ii) 1 of the property and casualty 
                        insurance producer members of the Board 
                        initially appointed under subparagraph (B) of 
                        paragraph (1), and
                            ``(iii) 1 of the insurer representative 
                        members of the Board initially appointed under 
                        subparagraphs (D) and (E) of paragraph (1),
                shall be 1 year, as designated by the President at the 
                time of the nomination of such members;
                    ``(B) a member of the Board may continue to serve 
                after the expiration of the term to which such member 
                was appointed until a successor is qualified; and
                    ``(C) any member of the Board appointed to fill a 
                vacancy occurring before the expiration of the term for 
                which the member's predecessor was appointed shall be 
                appointed only for the remainder of that term.
            ``(2) Successive terms.--Board members may be reappointed 
        to successive terms.
    ``(e) Meetings.--
            ``(1) In general.--The Board shall meet at the call of the 
        chairperson, as requested in writing to the chairperson by at 
        least four members of the Board, or as otherwise provided by 
        the bylaws of the Association.
            ``(2) Quorum required.--A majority of directors shall 
        constitute a quorum.
            ``(3) Voting.--Decisions of the Board shall require the 
        approval of a majority of all directors present at a meeting, a 
        quorum being present.

``SEC. 325. OFFICERS.

    ``(a) Positions.--The officers of the Association shall consist of 
a chairperson and a vice chairperson of the Board, an executive 
director, secretary, and treasurer of the Association, and such other 
officers and assistant officers as may be deemed necessary.
    ``(b) Manner of Selection.--Each officer of the Board and the 
Association shall be elected or appointed at such time, in such manner, 
and for such terms as may be prescribed in the bylaws of the 
Association.

``SEC. 326. BYLAWS, RULES, AND DISCIPLINARY ACTION.

    ``(a) Adoption and Amendment of Bylaws.--
            ``(1) Copy required to be filed.--The board of directors of 
        the Association shall submit to the President and the NAIC any 
        proposed bylaw or rules of the Association or any proposed 
        amendment to the bylaws or rules, accompanied by a concise 
        general statement of the basis and purpose of such proposal.
            ``(2) Effective date.--Any proposed bylaw or rule or 
        proposed amendment to the bylaws or rules shall take effect, 
        after notice published in the Federal Register and opportunity 
        for comment, upon such date as the Association may designate, 
        unless suspended under subsection (c) of section 330.
    ``(b) Disciplinary Action by the Association.--
            ``(1) Specification of charges.--In any proceeding to 
        determine whether membership shall be denied, suspended, 
        revoked, or not renewed (hereafter in this section referred to 
        as a `disciplinary action') or to determine whether a member of 
        the Association should be placed on probation, the Association 
        shall bring specific charges, notify such member of such 
        charges, give the member an opportunity to defend against the 
        charges, and keep a record.
            ``(2) Supporting statement.--A determination to take 
        disciplinary action shall be supported by a statement setting 
        forth--
                    ``(A) any act or practice in which such member has 
                been found to have been engaged;
                    ``(B) the specific provision of this subtitle, the 
                rules or regulations under this subtitle, or the rules 
                of the Association which any such act or practice is 
                deemed to violate; and
                    ``(C) the sanction imposed and the reason for such 
                sanction.

``SEC. 327. POWERS.

    ``In addition to all the powers conferred upon a nonprofit 
corporation by the District of Columbia Nonprofit Corporation Act, the 
Association shall have the following powers:
            ``(1) To establish and collect such membership fees as the 
        Association finds necessary to impose to cover the costs of its 
        operations.
            ``(2) To adopt, amend, and repeal bylaws and rules 
        governing the conduct of Association business and performance 
        of its duties.
            ``(3) To establish procedures for providing notice and 
        opportunity for comment pursuant to section 326(a).
            ``(4) To enter into and perform such agreements as 
        necessary to carry out its duties.
            ``(5) To hire employees, professionals or specialists, and 
        elect or appoint officers, and to fix their compensation, 
        define their duties and give them appropriate authority to 
        carry out the purposes of this subtitle, and determine their 
        qualification; and to establish the Association's personnel 
        policies and programs relating to, among other things, 
        conflicts of interest, rates of compensation. and 
        qualifications of personnel.
            ``(6) To borrow money.
            ``(7) To secure funding from board member organizations and 
        other industry associations for such amounts that the 
        Association determines to be necessary and appropriate to 
        organize and begin operations of the Association, which shall 
        be treated as loans to be repaid by the Association with 
        interest at market rate.

``SEC. 328. REPORT BY ASSOCIATION.

    ``(a) In General.--As soon as practicable after the close of each 
fiscal year, the Association shall submit to the President and the NAIC 
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 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. 329. LIABILITY OF THE ASSOCIATION AND THE DIRECTORS, OFFICERS, 
              AND EMPLOYEES OF THE ASSOCIATION.

    ``(a) In General.--The Association shall not be deemed to be an 
insurer or insurance producer within the meaning of any State law, 
rule, regulation, or order regulating or taxing insurers, insurance 
producers, or other entities engaged in the business of insurance, 
including provisions imposing premium taxes, regulating insurer 
solvency or financial condition, establishing guaranty funds and 
levying assessments, or requiring claims settlement practices.
    ``(b) Liability of Directors, Officers, and Employees.--No 
director, 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 Association.

``SEC. 330. PRESIDENTIAL OVERSIGHT.

    ``(a) Removal of Board.--If the President determines that the 
Association is acting in a manner contrary to the interests of the 
public or the purposes of this subtitle or has failed to perform its 
duties under this subtitle, the President may remove the entire 
existing Board for the remainder of the term to which the members of 
the Board were appointed and appoint, in accordance with section 324 
and with the advice and consent of the Senate, new members to fill the 
vacancies on the Board for the remainder of such terms.
    ``(b) Removal of Board Member.--The President may remove a member 
of the Board only for neglect of duty or malfeasance in office.
    ``(c) Suspension of Rules or Actions.--The President, or a person 
designated by the President for such purpose, may suspend the 
effectiveness of any rule, or prohibit any action, of the Association 
which the President or the designee determines is contrary to the 
purposes of this subtitle.

``SEC. 331. RELATIONSHIP TO STATE LAW.

    ``(a) Preemption of State Laws.--State laws, regulations, 
provisions, or other actions purporting to regulate 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 action 
                against, or apply any provision of law or regulation 
                arbitrarily or discriminatorily to, any insurance 
                producer because that insurance producer or any 
                affiliate plans to become, has applied to become, or is 
                a member of the Association;
                    ``(B) impose any requirement upon a member of the 
                Association that it pay fees different from those 
                required to be paid to that State were it not a member 
                of the Association;
                    ``(C) impose any continuing education requirements 
                on nonresident insurance producers; or
                    ``(D) impose any licensing, registration, or 
                appointment requirements upon any nonresident insurance 
                producer that sells, solicits, negotiates, effects, 
                procures, delivers, renews, continues, or binds 
                insurance for commercial property and casualty risks to 
                an insured with risks located in more than 1 State, if 
                such nonresident insurance producer is otherwise 
                licensed as an insurance producer in the State where 
                the insured maintains its principal place of business 
                and the contract of insurance insures risks located in 
                that State.
            ``(2) States other than a home state.--No State, other than 
        a member's home State, shall--
                    ``(A) impose any licensing, integrity, personal or 
                corporate qualifications, education, training, 
                experience, residency, continuing education, or bonding 
                requirement upon a member of the Association that is 
                different from the criteria for membership in the 
                Association or renewal of such membership;
                    ``(B) impose any requirement upon a member of the 
                Association that it be licensed, registered, or 
                otherwise qualified to do business or remain in good 
                standing in such State, including any requirement that 
                such insurance producer register as a foreign company 
                with the secretary of state or equivalent State 
                official; or
                    ``(C) require that a member of the Association 
                submit to a criminal history record check as a 
                condition of doing business in such State.

``SEC. 332. COORDINATION WITH OTHER REGULATORS.

    ``(a) Coordination With State Insurance Regulators.--The 
Association may--
            ``(1) establish a central clearinghouse, or utilize the 
        NAIC or any other appropriate entity as a central 
        clearinghouse, through which members of the Association may 
        pursuant to section 323(e) disclose their intent to operate in 
        1 or more States and pay the licensing fees to the appropriate 
        States; and
            ``(2) establish a national database for the collection of 
        regulatory information concerning the activities of insurance 
        producers or contract with the NAIC or any other entity to 
        utilize such a database.
    ``(b) Coordination With the Financial Industry Regulatory 
Authority.--The Association shall coordinate with the Financial 
Industry Regulatory Authority in order to ease any administrative 
burdens that fall on persons that are members of both associations, 
consistent with the requirements of this subtitle and the Federal 
securities laws.

``SEC. 333. 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 Association, commence a civil action 
in an appropriate United States district court, and obtain all 
appropriate relief.
    ``(b) Association Interpretations.--In any such action, the court 
shall give appropriate weight to the Association's interpretation of 
its bylaws and this subtitle.

``SEC. 334. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) Home state.--The term `home State' means the State in 
        which the insurance producer maintains its principal place of 
        residence or business and is licensed to act as an insurance 
        producer.
            ``(2) Insurance.--The term `insurance' means any product, 
        other than title insurance, defined or regulated as insurance 
        by the appropriate State insurance regulatory authority.
            ``(3) Insurance producer.--The term `insurance producer' 
        means any insurance agent or broker, excess or surplus lines 
        broker or agent, insurance consultant, limited insurance 
        representative, and any other individual or entity that 
        solicits, negotiates, effects, procures, delivers, renews, 
        continues or binds policies of insurance or offers advice, 
        counsel, opinions or services related to insurance.
            ``(4) State.--The term `State' includes any State, the 
        District of Columbia, any territory of the United States, and 
        Puerto Rico, Guam, American Samoa, the Trust Territory of the 
        Pacific Islands, the Virgin Islands, and the Northern Mariana 
        Islands.
            ``(5) State law.--
                    ``(A) In general.--The term `State law' includes 
                all laws, decisions, rules, regulations, or other State 
                action having the effect of law, of any State.
                    ``(B) Laws applicable in the district of 
                columbia.--A law of the United States applicable only 
                to or within the District of Columbia shall be treated 
                as a State law rather than a law of the United 
                States.''.
    (b) Clerical Amendment.--The table of contents for the Gramm-Leach-
Bliley Act is amended by striking the items relating to subtitle C of 
title III and inserting the following new items:

  ``Subtitle C--National Association of Registered Agents and Brokers

``Sec. 321. National association of registered agents and brokers.
``Sec. 322. Purpose.
``Sec. 323. Membership.
``Sec. 324. Board of directors.
``Sec. 325. Officers.
``Sec. 326. Bylaws, rules, and disciplinary action.
``Sec. 327. Powers.
``Sec. 328. Report by association.
``Sec. 329. Liability of the association and the directors, officers, 
                            and employees of the association.
``Sec. 330. Presidential oversight.
``Sec. 331. Relationship to State law.
``Sec. 332. Coordination with other regulators.
``Sec. 333. Judicial review and enforcement.
``Sec. 334. Definitions.''.

SEC. 3. COMPLIANCE PROVISION.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Committee on the Budget of the House of 
Representatives, provided that such statement has been submitted prior 
to the vote on passage.

            Passed the House of Representatives March 3, 2010.

            Attest:

                                                                 Clerk.
111th CONGRESS

  2d Session

                               H. R. 2554

_______________________________________________________________________

                                 AN ACT

 To reform the National Association of Registered Agents and Brokers, 
                        and for other purposes.