114 HR 26 : Terrorism Risk Insurance Program Reauthorization Act of 2015
U.S. House of Representatives
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title and table of contents
(a)This Act may be cited as the Terrorism Risk Insurance Program Reauthorization Act of 2015
.
(b)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.
<enum>I</enum><header>Extension of Terrorism Insurance Program</header>
<section commented="no" display-inline="no-display-inline" id="H97DFD43EC1B64ABEA9B62F4A9A5AF82A" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Extension of Terrorism Insurance Program</header><text display-inline="no-display-inline">Section 108(a) of the Terrorism Risk Insurance Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended by
striking <quote>December 31, 2014</quote> and inserting <quote>December 31, 2020</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H299941A1CC4B4E6E8468B12746255176" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">Federal share</header><text display-inline="no-display-inline">Section 103(e)(1)(A) of the Terrorism Risk Insurance Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended
by inserting <quote>and beginning on January 1, 2016, shall decrease by 1 percentage point per calendar year until
equal to 80 percent</quote> after <quote>85 percent</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H35037BD14E224D5CBDC5D19FC013D825" section-type="subsequent-section"><enum>103.</enum><header>Program trigger</header><text display-inline="no-display-inline">Subparagraph (B) of section 103(e)(1) (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended in the matter preceding
clause (i)—</text>
<paragraph id="H728B37C891054BA4BF9CDE2C3EA075B4"><enum>(1)</enum><text>by striking <quote>a certified act</quote> and inserting <quote>certified acts</quote>;</text>
</paragraph><paragraph id="HCBCA189F22564AC8B4A7349B1EEBF904"><enum>(2)</enum><text>by striking <quote>such certified act</quote> and inserting <quote>such certified acts</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD78B51F7DC6E4AD1A2259E0C41045277"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>exceed</quote> and all that follows through clause (ii) and inserting the following: “exceed—</text>
<quoted-block display-inline="no-display-inline" id="H699F1AE26F4049CA94C9546A1301947E" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="H8C715CC1747840C59FE64D4C62030731"><enum>(i)</enum><text>$100,000,000, with respect to such insured losses occurring in calendar year 2015;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H8660000B3ADC4162A341A34896F89E25"><enum>(ii)</enum><text>$120,000,000, with respect to such insured losses occurring in calendar year 2016;</text>
</clause><clause id="H196692D0B2E94C97BAACE472520E9F27"><enum>(iii)</enum><text display-inline="yes-display-inline">$140,000,000, with respect to such insured losses occurring in calendar year 2017;</text>
</clause><clause id="H413716639E70411ABEC6ABAD3F6F2938"><enum>(iv)</enum><text>$160,000,000, with respect to such insured losses occurring in calendar year 2018;</text>
</clause><clause id="HABE807134FAC4AE6B784E7A40E93391A"><enum>(v)</enum><text>$180,000,000, with respect to such insured losses occurring in calendar year 2019; and</text>
</clause><clause id="HE59B38D84E0A4544BE97E16792477248"><enum>(vi)</enum><text>$200,000,000, with respect to such insured losses occurring in calendar year 2020 and any calendar
year thereafter.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H36CF67236F804398B6C57D63C531E46C"><enum>104.</enum><header>Recoupment of Federal share of compensation under the program</header><text display-inline="no-display-inline">Section 103(e) of the Terrorism Risk Insurance Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended—</text>
<paragraph id="H5891730AA65D4FEC96AF4C4DCBA987E8"><enum>(1)</enum><text display-inline="yes-display-inline">by amending paragraph (6) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HDFCFA65A723F49D88A79BFFD3A711EA1" style="OLC">
<paragraph id="H756491EE906C43B98FDDC7E63D5F4361"><enum>(6)</enum><header>Insurance marketplace aggregate retention amount</header>
<subparagraph id="H5FD6E2DF01054EFA9601B0278067B553"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (7), the insurance marketplace aggregate retention amount shall be the
lesser of—</text>
<clause id="HEAD5622B62AB4642816F6632239E5AF9"><enum>(i)</enum><text>$27,500,000,000, as such amount is revised pursuant to this paragraph; and</text>
</clause><clause id="H978BEC78F39340D58C9E54AF8BC60BA7"><enum>(ii)</enum><text>the aggregate amount, for all insurers, of insured losses during such calendar year.</text>
</clause></subparagraph><subparagraph id="HBD88019DB10C43DF8F4B0A26D8FB5555"><enum>(B)</enum><header>Revision of insurance marketplace aggregate retention amount</header>
<clause id="H2061B6928FA84F0FAAB8C2387E0C28CF"><enum>(i)</enum><header>Phase-in</header><text>Beginning in the calendar year of enactment of the <short-title>Terrorism Risk Insurance Program Reauthorization Act of 2015</short-title>, 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.</text>
</clause><clause id="H303826FA8B7C4EC0B1C16A9D63E1124B"><enum>(ii)</enum><header>Further revision</header><text>Beginning in the calendar year that follows the calendar year in which the amount set forth under
subparagraph (A)(i) is equal to $37,500,000,000, the amount under
subparagraph (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 determined
by the Secretary under subparagraph (C).</text>
</clause></subparagraph><subparagraph id="HB58A99C3E4D04DE6960807DDDF57457B"><enum>(C)</enum><header>Rulemaking</header><text>Not later than 3 years after the date of enactment of the <short-title>Terrorism Risk Insurance Program Reauthorization Act of 2015</short-title>, the Secretary shall—</text>
<clause id="HD0E757C435CC48CA9F2E97395CF3BE85"><enum>(i)</enum><text>issue final rules for determining the amount of the sum described under subparagraph (B)(ii); and</text>
</clause><clause id="H4C4D514C474541A9B0D41B101706FA28"><enum>(ii)</enum><text>provide a timeline for public notification of such determination.</text></clause></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0FCF3203964F406DBE4E3D1466CD121B"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (7)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H3FA91DD6F2D8423A9592C8696E3855C0"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<clause commented="no" display-inline="no-display-inline" id="H3860B5E5CAB7487AA694A5215ABD1B59"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by striking <quote>for each of the periods referred to in subparagraphs (A) through (E) of paragraph (6)</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H46499E0F949D4001867F0A7461455011"><enum>(ii)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>for such period</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBE78FD1CCB164CCAAF1E58FEBBB2C7E7"><enum>(B)</enum><text display-inline="yes-display-inline">by striking subparagraph (B) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H51D5C360DFF74EC4BC6E471F5657D5AD" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HE8D3A17C72A4402CA689D35D768ED6DA"><enum>(B)</enum><text display-inline="yes-display-inline">[Reserved.]</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HAE6D9A2427D743FB8F7F1F9ECAB56507"><enum>(C)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text>
<clause commented="no" display-inline="no-display-inline" id="H981CC21864144A0087D44FC7F65B66D5"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>occurring during any of the periods referred to in any of subparagraphs (A) through (E) of
paragraph (6), terrorism loss risk-spreading premiums in an amount equal
to 133 percent</quote> and inserting <quote>, terrorism loss risk-spreading premiums in an amount equal to 140 percent</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H5A9F7796D28940B186F3CDDF4D6BBFED"><enum>(ii)</enum><text display-inline="yes-display-inline">by inserting <quote>as calculated under subparagraph (A)</quote> after <quote>mandatory recoupment amount</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8B47DC8D05514AB3BB5350A09C62565F"><enum>(D)</enum><text display-inline="yes-display-inline">in subparagraph (E)(i)—</text>
<clause commented="no" display-inline="no-display-inline" id="H86A8B89296BC4FBB9332AA7363CC42C9"><enum>(i)</enum><text display-inline="yes-display-inline">in subclause (I)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H0408020F79FF40619EA5DB27E6ED1FA0"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>2010</quote> and inserting <quote>2017</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H64AE09AE2DBD441F97475A9D71B83D79"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>2012</quote> and inserting <quote>2019</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HC23098E89D2D4199B302040D62818488"><enum>(ii)</enum><text display-inline="yes-display-inline">in subclause (II)—</text>
<subclause commented="no" display-inline="no-display-inline" id="HA35E4A4A031B422A89A59FB57616E7A1"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>2011</quote> and inserting <quote>2018</quote>;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HBDA1EC3575704EF09D078BA98740545E"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>2012</quote> and inserting <quote>2019</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HA44654244350440B86C4F509F3EB0B37"><enum>(III)</enum><text display-inline="yes-display-inline">by striking <quote>2017</quote> and inserting <quote>2024</quote>; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="H1564745828894A71A249B6863AA9BF60"><enum>(iii)</enum><text display-inline="yes-display-inline">in subclause (III)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H49368BB0A2D84B6D8DBD8D7618EEC1D8"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>2012</quote> and inserting <quote>2019</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H30C20AAB46CE4716AC136E6A1F09E121"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>2017</quote> and inserting <quote>2024</quote>.</text>
</subclause></clause></subparagraph></paragraph></section><section id="H2D2EFC27CA694887A4B71123F926D6DA"><enum>105.</enum><header>Certification of acts of terrorism; consultation with Secretary of Homeland Security</header>
<text display-inline="no-display-inline">Paragraph (1)(A) of section 102 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended in the matter preceding clause
(i), by striking <quote>concurrence with the Secretary of State</quote> and inserting <quote>consultation with the Secretary of Homeland Security</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H911D9473D275479FBF6B30931B8C7933" section-type="subsequent-section"><enum>106.</enum><header display-inline="yes-display-inline">Technical amendments</header><text display-inline="no-display-inline">The Terrorism Risk Insurance Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF3F1DD7696DB411BAF39E100BE793EBF"><enum>(1)</enum><text display-inline="yes-display-inline">in section 102—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFE3DBD7DA2D5492A9DC9CED785D886CA"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3)—</text>
<clause commented="no" display-inline="no-display-inline" id="H5E29777714354761B2654F9B3FBDDE11"><enum>(i)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A), (B), and (C) as clauses (i), (ii), and (iii), respectively;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HDDDD880E656C43D18546DCD5330F6AA5"><enum>(ii)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i) (as so redesignated), by striking <quote>An entity has</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H67C725315C2742D98021056E1328DB18" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H309A9F2645314B2383B24905415CCE46"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">An entity has</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block>
</clause><clause commented="no" display-inline="no-display-inline" id="HCA7FF1142B4449CB921F7B3D45E9AAA4"><enum>(iii)</enum><text display-inline="yes-display-inline">by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HFACAC10248314AFFB6A9E750E8927B42" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H31A987ACD23B4B59AF2A34189B672AEF"><enum>(B)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">An entity, including any affiliate thereof, does not have <quote>control</quote> over another entity, if, as of the date of enactment of the <short-title>Terrorism Risk Insurance Program Reauthorization Act of 2015</short-title>, the entity 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
having <quote>control</quote> under subparagraph (A).</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2869C22F8577487D967E70F2B06A60B4"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (7)—</text>
<clause commented="no" display-inline="no-display-inline" id="HD5DFA7533C4B46E49CCB503CB0078235"><enum>(i)</enum><text display-inline="yes-display-inline">by striking subparagraphs (A) through (F) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H9265C74ADAED40C095D96DAE4EE0423C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="H83CE0C22134D448E84468051A0CD5D4A"><enum>(A)</enum><text display-inline="yes-display-inline">the value of an insurer's direct earned premiums during the immediately preceding calendar year,
multiplied by 20 percent; and</text></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block>
</clause><clause commented="no" display-inline="no-display-inline" id="H7BAEE5087FB647AEBCFA9BEF1F2B8F18"><enum>(ii)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (G) as subparagraph (B); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H9244986D949942609940AD0459BE4A26"><enum>(iii)</enum><text display-inline="yes-display-inline">in subparagraph (B), as so redesignated by clause (ii)—</text>
<subclause commented="no" display-inline="no-display-inline" id="H50AD9110560E47A8A886DB74E9335C6D"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>notwithstanding subparagraphs (A) through (F), for the Transition Period or any Program Year</quote> and inserting <quote>notwithstanding subparagraph (A), for any calendar year</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HF6471787FB394CCA8952C3E09D3D89EC"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>Period or Program Year</quote> and inserting <quote>calendar year</quote>;</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H2C9748FA43D24B6ABC85CD4740493BD1"><enum>(C)</enum><text display-inline="yes-display-inline">by striking paragraph (11); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6E8E6A6D5BD64F499D790AA288E9AC35"><enum>(D)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (12) through (16) as paragraphs (11) through (15), respectively; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H847DE23BBC9D4C8B9D778FA813248D45"><enum>(2)</enum><text display-inline="yes-display-inline">in section 103—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H4026F2EE3BFC4362A7ABCA033403EF20"><enum>(A)</enum><text>in subsection (b)(2)—</text>
<clause id="H61BEB066570D4457A33786EAC7F66EF8"><enum>(i)</enum><text>in subparagraph (B), by striking <quote>, purchase,</quote>; and</text>
</clause><clause id="HE9AB5113FDB641BB94503C8130CE1226"><enum>(ii)</enum><text>in subparagraph (C), by striking <quote>, purchase,</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H118FA2C64AE64B7EA469191849D1C311"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (c), by striking <quote>Program Year</quote> and inserting <quote>calendar year</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4F590595FEB843F6940DE49F8825462C"><enum>(C)</enum><text display-inline="yes-display-inline">in subsection (e)—</text>
<clause commented="no" display-inline="no-display-inline" id="HB608F2A6DAF14160A73342D6BB6C0CCD"><enum>(i)</enum><text display-inline="yes-display-inline">in paragraph (1)(A), as previously amended by section 102—</text>
<subclause commented="no" display-inline="no-display-inline" id="H37123A6DDD2546C1AB32DBF29C868B8E"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>the Transition Period and each Program Year through Program Year 4 shall be equal to 90 percent,
and during Program Year 5 and each Program Year thereafter</quote> and inserting <quote>each calendar year</quote>;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="HADB4C8DCC6964D8088C2807E8602A734"><enum>(II)</enum><text display-inline="yes-display-inline">by striking the comma after <quote>80 percent</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="H243870B1593F484493EAB5B807FEADA8"><enum>(III)</enum><text display-inline="yes-display-inline">by striking <quote>such Transition Period or such Program Year</quote> and inserting <quote>such calendar year</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="HFAB871ABEE4A4BE7B886EABA263962FA"><enum>(ii)</enum><text display-inline="yes-display-inline">in paragraph (2)(A), by striking <quote>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</quote> and inserting <quote>a calendar year</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="HC734AC55A5D94547BBF58016C9497E30"><enum>(iii)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking <quote>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</quote> and inserting <quote>any calendar year</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8FAFE3CCD61D4500834F35D06D2C7C2C"><enum>(D)</enum><text display-inline="yes-display-inline">in subsection (g)(2)—</text>
<clause commented="no" display-inline="no-display-inline" id="H520079FE193B4EFE8DF9800C94DFF653"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>the Transition Period or a Program Year</quote> each place that term appears and inserting <quote>the calendar year</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H2E5191107684482E8440BFDFE8A92A80"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>such period</quote> and inserting <quote>the calendar year</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="H69C7891391B04EFE9348DF4194C51256"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking <quote>that period</quote> and inserting <quote>the calendar year</quote>.</text>
</clause></subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="H195FEBE209CC4AE2BA1DEE3BEB0FE04B" section-type="subsequent-section"><enum>107.</enum><header display-inline="yes-display-inline">Improving the certification process</header>
<subsection commented="no" display-inline="no-display-inline" id="HDC99BD73A3ED4B71BE121E56C825FE22"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">As used in this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H29FAE075150C40D2A1067B847AB7068F"><enum>(1)</enum><text display-inline="yes-display-inline">the term <quote>act of terrorism</quote> has the same meaning as in section 102(1) of the Terrorism Risk Insurance Act of 2002 (15 U.S.C.
6701 note);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE7D06769C92A4AD081D5C3C4EAB47455"><enum>(2)</enum><text display-inline="yes-display-inline">the term <quote>certification process</quote> 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
(<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H628813B773B14F7F9C0CD6CCF2EC4B58"><enum>(3)</enum><text display-inline="yes-display-inline">the term <quote>Secretary</quote> means the Secretary of the Treasury.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE677F5A9902446ED8FC6EBAB230196FE"><enum>(b)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H354660C4AF364DE3A81469C49BCCCDDA"><enum>(c)</enum><header display-inline="yes-display-inline">Required content</header><text display-inline="yes-display-inline">The study required under subsection (a) shall include an examination and analysis of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H51AF5DE031D647C5B85FE3AF6987356D"><enum>(1)</enum><text display-inline="yes-display-inline">the establishment of a reasonable timeline by which the Secretary must make an accurate
determination on whether to certify an act as an act of terrorism;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H690A0A870DC24AF6988C29F542F79F1F"><enum>(2)</enum><text display-inline="yes-display-inline">the impact that the length of any timeline proposed to be established under paragraph (1) may have
on the insurance industry, policyholders, consumers, and taxpayers as a
whole;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H70CA4F999DA94F9C991DD961BAFFF46C"><enum>(3)</enum><text display-inline="yes-display-inline">the factors the Secretary would evaluate and monitor during the certification process, including
the ability of the Secretary to obtain the required information regarding
the amount of projected and incurred losses resulting from an act which
the Secretary would need in determining whether to certify the act as an
act of terrorism;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC824575D81D3489ABBBE0C368178B9C4"><enum>(4)</enum><text display-inline="yes-display-inline">the appropriateness, efficiency, and effectiveness 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 recommendations on changes to the consultation process;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9DDA2997F874426584344EBBE5772F2D"><enum>(5)</enum><text display-inline="yes-display-inline">the ability of the Secretary to provide guidance and updates to the public regarding any act that
may reasonably be certified as an act of terrorism.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDBC59D96A07C4E1289DB564001DDDBB6"><enum>(d)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">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 Committee on Financial Services of the House
of Representatives.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAC45549DD1EB46F28549B3DEBE2259CC"><enum>(e)</enum><header display-inline="yes-display-inline">Rulemaking</header><text display-inline="yes-display-inline">Section 102(1) of the Terrorism Risk Insurance Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H67675D270D5F466C9D13389C09B594B9"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraph (D) as subparagraph (E); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBF57A8C6080E48138D937A19D2D8241B"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (C) the following:</text>
<quoted-block display-inline="no-display-inline" id="H80F8476360DE4AFCACC3F69458992FB5" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="HD2CEC42AF0364AA28106544FECA9996A"><enum>(D)</enum><header display-inline="yes-display-inline">Timing of certification</header><text display-inline="yes-display-inline">Not later than 9 months after the report required under section 107 of the <short-title>Terrorism Risk Insurance Program Reauthorization Act of 2015</short-title> is submitted to the appropriate committees of Congress, the Secretary shall issue final rules
governing the certification process, including establishing a timeline for
which an act is eligible for certification by the Secretary on whether an
act is an act of terrorism under this paragraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HF279E78A1A234FADB9E2ED45F0E2A2E7" section-type="subsequent-section"><enum>108.</enum><header display-inline="yes-display-inline">GAO study</header>
<subsection commented="no" display-inline="no-display-inline" id="H14B9714222A348E5A7F98CAB55A00EEE"><enum>(a)</enum><header display-inline="yes-display-inline">Study</header><text display-inline="yes-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H0C82B8DE6B4A45AF84DA511CBADB0B51"><enum>(1)</enum><text display-inline="yes-display-inline">assessing and collecting upfront premiums on insurers that participate in the Terrorism Insurance
Program established under the Terrorism Risk Insurance Act of 2002 (15
U.S.C. 6701 note) (hereafter in this section referred to as the <quote>Program</quote>), which shall include a comparison of practices in international markets to assess and collect
premiums either before or after terrorism losses are incurred; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA1C198E80EA143258818CC406548F72B"><enum>(2)</enum><text display-inline="yes-display-inline">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 include a comparison of practices in
international markets to establish reserve funds.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1CDB2DF412B2428AA471AA6B22307BE4"><enum>(b)</enum><header display-inline="yes-display-inline">Required content</header><text display-inline="yes-display-inline">The study required under subsection (a) shall examine, but shall not be limited to, the following
issues:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H939DB00BD5924C08900357122D402B76"><enum>(1)</enum><header>Upfront premiums</header><text display-inline="yes-display-inline">With respect to upfront premiums described in subsection (a)(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HE2E97A4543104C35913C291B91D36EED"><enum>(A)</enum><text display-inline="yes-display-inline">how the Federal Government could determine the price of such upfront premiums on insurers that
participate in the Program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE7FBFA7D72554E11960FC97E0B090645"><enum>(B)</enum><text display-inline="yes-display-inline">how the Federal Government could collect and manage such upfront premiums;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H512AB27A5BE742678E57DFA68D58F2C7"><enum>(C)</enum><text display-inline="yes-display-inline">how the Federal Government could ensure that such upfront premiums are not spent for purposes other
than claims through the Program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1DB3946B5C9B4BCDB8E455D34162AE5B"><enum>(D)</enum><text display-inline="yes-display-inline">how the assessment and collection of such upfront premiums could affect take-up rates for terrorism
risk coverage in different regions and industries and how it could impact
small businesses and consumers in both metropolitan and non-metropolitan
areas;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4445153BF8574113B3416B2084FD3D91"><enum>(E)</enum><text display-inline="yes-display-inline">the effect of collecting such upfront premiums on insurers both large and small;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H84970D4ADF93499AA6CD5C28ECD5EF9D"><enum>(F)</enum><text display-inline="yes-display-inline">the effect of collecting such upfront premiums on the private market for terrorism risk
reinsurance; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H70B6C0AB8670426EAAE6EF3A794958FB"><enum>(G)</enum><text display-inline="yes-display-inline">the size of any Federal Government subsidy insurers may receive through their participation in the
Program, taking into account the Program’s current post-event recoupment
structure.</text>
</subparagraph></paragraph><paragraph id="H3ECC16D5CB434EAC8253E2F2AB321CCC"><enum>(2)</enum><header>Capital reserve fund</header><text>With respect to the capital reserve fund described in subsection (a)(2)—</text>
<subparagraph id="H121A6C630EC440528D40F9C7BEDF22FE"><enum>(A)</enum><text display-inline="yes-display-inline">how the creation of a capital reserve fund would affect the Federal Government’s fiscal exposure
under the Terrorism Risk Insurance Program and the ability of the Program
to meet its statutory purposes;</text>
</subparagraph><subparagraph id="H79249B759D584DC296516AE26BC50C80"><enum>(B)</enum><text>how a capital reserve fund would impact insurers and reinsurers, including liquidity, insurance
pricing, and capacity to provide terrorism risk coverage;</text>
</subparagraph><subparagraph id="HB4ED593E387B4840BB1B7B6620401026"><enum>(C)</enum><text>the feasibility of segregating funds attributable to terrorism risk from funds attributable to
other insurance lines;</text>
</subparagraph><subparagraph id="H4909D38604454449BC2E120EDAF7CB1F"><enum>(D)</enum><text>how a capital reserve fund would be viewed and treated under current Financial Accounting Standards
Board accounting rules and the tax laws; and</text>
</subparagraph><subparagraph id="H9D874904A7554AAA8CD76445A6E8226B"><enum>(E)</enum><text>how a capital reserve fund would affect the States’ ability to regulate insurers participating in
the Program.</text>
</subparagraph></paragraph><paragraph id="H57A72CE93F8F4E91B162BBEC99443179"><enum>(3)</enum><header>International practices</header><text display-inline="yes-display-inline">With respect to international markets referred to in paragraphs (1) and (2) of subsection (a), how
other countries, if any—</text>
<subparagraph id="H834DCB3A18DB431ABE313300AF042894"><enum>(A)</enum><text>have established terrorism insurance structures;</text>
</subparagraph><subparagraph id="H20CD6BE2609A4692B1780B30EEBCC723"><enum>(B)</enum><text>charge premiums or otherwise collect funds to pay for the costs of terrorism insurance structures,
including risk and administrative costs; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HA8824E20DDFB4D8BA4756B01F739FF2B"><enum>(C)</enum><text>have established capital reserve funds to pay for the costs of terrorism insurance structures.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2078CEACE2054786B95F3BA7D02A2E83"><enum>(c)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Upon completion of the study required under subsection (a), the Comptroller General shall submit a
report on the results of such study to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial Services of
the House of Representatives.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2BF796B330404D00B1F92F712E04C2F5"><enum>(d)</enum><header display-inline="yes-display-inline">Public availability</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="HB2ECFCF737DD4F9981CBE2678799133D"><enum>109.</enum><header>Membership of Board of Governors of the Federal Reserve System</header>
<subsection id="HFDD2528051CF4DC898B4F58D2C0EE193"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The first undesignated paragraph of section 10 of the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/241">12 U.S.C. 241</external-xref>) is
amended by inserting after the second sentence the following: <quote>In selecting members of the Board, the President shall appoint at least 1 member with demonstrated
primary experience working in or supervising community banks having less
than $10,000,000,000 in total assets.</quote>.</text>
</subsection><subsection id="H1317988A13544A1A8354ABFF4FF83A7D"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H43C4F108F35142588B316298B4D2C974"><enum>110.</enum><header>Advisory Committee on Risk-Sharing Mechanisms</header>
<subsection id="H72DD1F4444B141BAAF1926DF30CD3A05"><enum>(a)</enum><header>Finding; rule of construction</header>
<paragraph id="H72637A394BE143E78C9F8217DD049580"><enum>(1)</enum><header>Finding</header><text>Congress finds that it is desirable to encourage the growth of nongovernmental, private market
reinsurance capacity for protection against losses arising from acts of
terrorism.</text>
</paragraph><paragraph id="H9FEE638133414976B4A0F10B4783192E"><enum>(2)</enum><header>Rule of construction</header><text>Nothing in this Act, any amendment made by this Act, or the Terrorism Risk Insurance Act of 2002
(<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) shall prohibit insurers from developing risk-sharing
mechanisms to voluntarily reinsure terrorism losses between and among
themselves.</text>
</paragraph></subsection><subsection id="H635B087A2B724159A8B7A76F69E37038"><enum>(b)</enum><header>Advisory Committee on Risk-Sharing Mechanisms</header>
<paragraph id="H3147F3616399445BB1F7F5B77CBA9D6C"><enum>(1)</enum><header>Establishment</header><text>The Secretary of the Treasury shall establish and appoint an advisory committee to be known as the <quote>Advisory Committee on Risk-Sharing Mechanisms</quote> (referred to in this subsection as the <quote>Advisory Committee</quote>).</text>
</paragraph><paragraph id="H7464EBF532EC42EDBD1E5677F9AC3CD1"><enum>(2)</enum><header>Duties</header><text>The Advisory Committee shall provide advice, recommendations, and encouragement with respect to the
creation and development of the nongovernmental risk-sharing mechanisms
described under subsection (a).</text>
</paragraph><paragraph id="H7064778DC87A49E6B5D1014E91D00A38"><enum>(3)</enum><header>Membership</header><text>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 sectors of the insurance industry,
including commercial property insurance, commercial casualty insurance,
reinsurance, and alternative risk transfer industries.</text>
</paragraph></subsection></section><section id="HCF0225AF89BA4C15A6B4497B1A6DF826"><enum>111.</enum><header>Reporting of terrorism insurance data</header><text display-inline="no-display-inline">Section 104 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="HDD96444244E7439AB80B23EBEFE612E6" style="OLC">
<subsection id="H222F59D989A54821ADE8F4F411044CE5"><enum>(h)</enum><header>Reporting of terrorism insurance data</header>
<paragraph id="H2365023FA6C441AA9684942076F2351A"><enum>(1)</enum><header>Authority</header><text display-inline="yes-display-inline">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 Secretary such information regarding insurance coverage for terrorism
losses of such insurers as the Secretary considers appropriate to analyze
the effectiveness of the Program, which shall include information
regarding—</text>
<subparagraph id="HF2E29E7909AE40B4A9674593C08741D2"><enum>(A)</enum><text>lines of insurance with exposure to such losses;</text>
</subparagraph><subparagraph id="HA417BC605797419E868C1D5189B24455"><enum>(B)</enum><text>premiums earned on such coverage;</text>
</subparagraph><subparagraph id="HF8D66E91D43D40D68642648A0ABEFB79"><enum>(C)</enum><text>geographical location of exposures;</text>
</subparagraph><subparagraph id="H268148379B1949C6B9FB9953E28DB00D"><enum>(D)</enum><text>pricing of such coverage;</text>
</subparagraph><subparagraph id="HFA1284C8E48643EB898DFF2CD0E3DB5D"><enum>(E)</enum><text>the take-up rate for such coverage;</text>
</subparagraph><subparagraph id="H8E08B6BD245A4C5B8148454599223719"><enum>(F)</enum><text display-inline="yes-display-inline">the amount of private reinsurance for acts of terrorism purchased; and</text>
</subparagraph><subparagraph id="H6E966253402D40F7842CDF9642EF1F48"><enum>(G)</enum><text>such other matters as the Secretary considers appropriate.</text>
</subparagraph></paragraph><paragraph id="H842E15333FD54E8CBD05EE68EFDD0DF6"><enum>(2)</enum><header>Reports</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="H7C8D33EB0BC747F4BDA2E978CDFC5845"><enum>(A)</enum><text>an analysis of the overall effectiveness of the Program;</text>
</subparagraph><subparagraph id="H29BB590EF32649818AF741626698FE96"><enum>(B)</enum><text>an evaluation of any changes or trends in the data collected under paragraph (1);</text>
</subparagraph><subparagraph id="H9AE01BF3C9C642E383F162FFA0814978"><enum>(C)</enum><text display-inline="yes-display-inline">an evaluation of whether any aspects of the Program have the effect of discouraging or impeding
insurers from providing commercial property casualty insurance coverage or
coverage for acts of terrorism;</text>
</subparagraph><subparagraph id="H778E9C1CB8E94BCDAED80F9236022737"><enum>(D)</enum><text>an evaluation of the impact of the Program on workers’ compensation insurers; and</text>
</subparagraph><subparagraph id="HD6821E84DCEB4612ADA223BE1F7E2F5D"><enum>(E)</enum><text>in the case of the data reported in paragraph (1)(B), an updated estimate of the total amount
earned since January 1, 2003.</text>
</subparagraph></paragraph><paragraph id="HF24FCBED01C4498FBB410A952374C6D5"><enum>(3)</enum><header>Protection of data</header><text display-inline="yes-display-inline">To the extent possible, the Secretary shall contract with an insurance 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.</text>
</paragraph><paragraph id="HD90040D5F44D4D3197B423148AFA9EE6"><enum>(4)</enum><header>Advance coordination</header><text>Before collecting any data or information under paragraph (1) from an insurer, or affiliate of an
insurer, the Secretary shall coordinate with the appropriate State
insurance regulatory authorities and any relevant government agency or
publicly available sources to determine if the information to be collected
is available from, and may be obtained in a timely manner by, individually
or collectively, such entities. If the Secretary determines that such data
or 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 Secretary determines that such data or information
is not so available, the Secretary may collect such data or information
from an insurer and affiliates.</text>
</paragraph><paragraph id="H4302B852A443440ABB049E96F667686D"><enum>(5)</enum><header>Confidentiality</header>
<subparagraph id="H18768011BDA24CBF871F3041AB4CF5DA"><enum>(A)</enum><header>Retention of privilege</header><text display-inline="yes-display-inline">The submission of any non-publicly available data and information to the Secretary and the sharing
of any non-publicly available data with or by the Secretary among other
Federal agencies, the State insurance regulatory authorities, 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 otherwise subject.</text>
</subparagraph><subparagraph id="H6316239E84914A2DAD9239205E2B6457"><enum>(B)</enum><header>Continued application of prior confidentiality agreements</header><text>Any requirement under Federal or State law to the extent otherwise applicable, or any requirement
pursuant 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 information 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.</text>
</subparagraph><subparagraph id="H6E7FC2986FFF4905B6A0A7D28E46977D"><enum>(C)</enum><header>Information-sharing agreement</header><text>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—</text>
<clause id="HC7D4B15F862148F3B13EF9B23CD8F2B2"><enum>(i)</enum><text>shall comply with applicable Federal law; and</text>
</clause><clause id="H2711F26C508448BCADAE78084FEAE68C"><enum>(ii)</enum><text>shall not constitute a waiver of, or otherwise affect, any privilege under Federal or State law
(including any privilege referred to in subparagraph (A) and the rules of
any Federal or State court) to which the data or information is otherwise
subject.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD825602B0D2F47A0A2B8D9AD388EE464"><enum>(D)</enum><header>Agency disclosure requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/552">Section 552</external-xref> 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
insurer or affiliate of an insurer.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H1533011AE11749C993DF35D503B1E959"><enum>112.</enum><header>Annual study of small insurer market competitiveness</header><text display-inline="no-display-inline">Section 108 (<external-xref legal-doc="usc" parsable-cite="usc/15/6701">15 U.S.C. 6701</external-xref> note) is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H1E36F92ED56F4CE8B487B1F502BFD8F0" style="OLC">
<subsection id="H6D60EF8F8DBD41BEB8CB1531B3E1D5C8"><enum>(h)</enum><header>Study of small insurer market competitiveness</header>
<paragraph id="HB5523946AB7641FA8B7BD475C95ABCC0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than June 30, 2017, and every other June 30 thereafter, the Secretary shall conduct a
study of small insurers (as such term is defined by regulation by the
Secretary) participating in the Program, and identify any competitive
challenges small insurers face in the terrorism risk insurance
marketplace, including—</text>
<subparagraph id="HA0EDEB9809E5468A8B80B265C6B84E84"><enum>(A)</enum><text>changes to the market share, premium volume, and policyholder surplus of small insurers relative to
large insurers;</text>
</subparagraph><subparagraph id="HE57995AFB0F646CD8BA476D9C06B34EE"><enum>(B)</enum><text>how the property and casualty insurance market for terrorism risk differs between small and large
insurers, and whether such a difference exists within other perils;</text>
</subparagraph><subparagraph id="HE7F8707C13F24AD3A8C6D950D53EC66C"><enum>(C)</enum><text>the impact of the Program’s mandatory availability requirement under section 103(c) on small
insurers;</text>
</subparagraph><subparagraph id="H4F2EA06664694738983F836918EFA2EC"><enum>(D)</enum><text>the effect of increasing the trigger amount for the Program under section 103(e)(1)(B) on small
insurers;</text>
</subparagraph><subparagraph id="HFB3639813CC74DBD8446C6E25862EAA6"><enum>(E)</enum><text>the availability and cost of private reinsurance for small insurers; and</text>
</subparagraph><subparagraph id="H17606B5C83964FE7929B8D276DFF3704"><enum>(F)</enum><text>the impact that State workers compensation laws have on small insurers and workers compensation
carriers in the terrorism risk insurance marketplace.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2F450BA4C3AF4BEBA3F456DECAA2441A"><enum>(2)</enum><header>Report</header><text>The Secretary shall submit a report to the Congress setting forth the findings and conclusions of
each study required under paragraph (1).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>National Association of Registered Agents and Brokers Reform</header>
<section id="HE3625A640D5C40918ADD548F4E083FE3" section-type="subsequent-section"><enum>201.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>National Association of Registered Agents and Brokers Reform Act of 2015</short-title></quote>.</text>
</section><section id="HA504649A7B8444399A3C881B264430AA"><enum>202.</enum><header>Reestablishment of the National Association of Registered Agents and Brokers</header>
<subsection id="H2BAC5359B58D4328BA3C608542456D9A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle C of title III of the Gramm-Leach-Bliley Act (<external-xref legal-doc="usc" parsable-cite="usc/15/6751">15 U.S.C. 6751 et seq.</external-xref>) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="HBB4505AD30104BD4AF831908851DF3C5" style="OLC">
<subtitle id="H317C9042126446C4B3990413C1B6D2FA"><enum>C</enum><header>National Association of Registered Agents and Brokers</header>
<section id="HC0A81148167343E5835FE3D4F16D1DE4"><enum>321.</enum><header>National Association of Registered Agents and Brokers</header>
<subsection id="H8753EB3A48024E04B79F0C468177003F"><enum>(a)</enum><header>Establishment</header><text>There is established the National Association of Registered Agents and Brokers (referred to in this
subtitle as the <quote>Association</quote>).</text>
</subsection><subsection id="H05D6D79BB7884AC4851A1258B505D357"><enum>(b)</enum><header>Status</header><text>The Association shall—</text>
<paragraph id="HA48A4869249A47D1A78C6EAD51DD94D0"><enum>(1)</enum><text>be a nonprofit corporation;</text>
</paragraph><paragraph id="H3AA6385928F84622AB548DA6F01A4773"><enum>(2)</enum><text>not be an agent or instrumentality of the Federal Government;</text>
</paragraph><paragraph id="H2AA7A81BF07F483AAD85AF39B6C02904"><enum>(3)</enum><text>be an independent organization that may not be merged with or into any other private or public
entity; and</text>
</paragraph><paragraph id="H27168E5B7C7A4239BB851A72540C2E19"><enum>(4)</enum><text>except as otherwise provided in this subtitle, be subject to, and have all the powers conferred
upon, a nonprofit corporation by the District of Columbia Nonprofit
Corporation Act (D.C. Code, sec. 29–301.01 et seq.) or any successor
thereto.</text>
</paragraph></subsection></section><section id="H93B5FCFE9A6349E4A2FAA6BD66EA83DC"><enum>322.</enum><header>Purpose</header><text display-inline="no-display-inline">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 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—</text>
<paragraph id="H83FA429F296A4899B120BED6A5BD7612"><enum>(1)</enum><text>licensing, continuing education, and other qualification requirements of insurance producers that
are not members of the Association;</text>
</paragraph><paragraph id="HEC4DF183D51046A3ADBA61E3E788BC8D"><enum>(2)</enum><text>resident or nonresident insurance producer appointment requirements;</text>
</paragraph><paragraph id="H8D3AFFAEC4B343B58023A508043DFF04"><enum>(3)</enum><text>supervising and disciplining resident and nonresident insurance producers;</text>
</paragraph><paragraph id="HE6A550AE067245BBB2ED42DB4F4D30A2"><enum>(4)</enum><text>establishing licensing fees for resident and nonresident insurance producers so that there is no
loss of insurance producer licensing revenue to the State; and</text>
</paragraph><paragraph id="HA80469A9C79544A1BB83F993B1D797A0"><enum>(5)</enum><text>prescribing and enforcing laws and regulations regulating the conduct of resident and nonresident
insurance producers.</text>
</paragraph></section><section id="HE1EF3DB55D394BA4BB2FC054F6A5CAC7"><enum>323.</enum><header>Membership</header>
<subsection id="HEBD1D8F6775B475CB9E6B5E15EB7DAF9"><enum>(a)</enum><header>Eligibility</header>
<paragraph id="H9E7A19F3222841EAA399B42C08F8B1B7"><enum>(1)</enum><header>In general</header><text>Any insurance producer licensed in its home State shall, subject to paragraphs (2) and (4), be
eligible to become a member of the Association.</text>
</paragraph><paragraph id="HA145433673E34FC99485B9153292115D"><enum>(2)</enum><header>Ineligibility for suspension or revocation of license</header><text>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 the
insurance license of the insurance producer in that State.</text>
</paragraph><paragraph id="H6E2E263CF8AC43E8B2972341BA04107E"><enum>(3)</enum><header>Resumption of eligibility</header><text>Paragraph (2) shall cease to apply to any insurance producer if—</text>
<subparagraph id="H38F3F53674474DC499F9F555C957C166"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HC616FAAD010046F8883C356FE872D744"><enum>(B)</enum><text>the suspension or revocation expires or is subsequently overturned by a court of competent
jurisdiction.</text>
</subparagraph></paragraph><paragraph id="H5069D2F480D144FA957B08E2D09193F4"><enum>(4)</enum><header>Criminal history record check required</header>
<subparagraph id="H30D60D73223C4879A4E11A375C96C921"><enum>(A)</enum><header>In general</header><text>An insurance producer who is an individual shall not be eligible to become a member of the
Association unless the insurance producer has undergone a criminal history
record check that complies with regulations prescribed by the Attorney
General of the United States under subparagraph (K).</text>
</subparagraph><subparagraph id="H58ADBCF59C034F7FB41F92B9CB8384FF"><enum>(B)</enum><header>Criminal history record check requested by home State</header><text>An insurance producer who is licensed in a State and who has undergone a criminal history record
check during the 2-year period preceding the date of submission of an
application to become a member of the Association, in compliance with a
requirement 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).</text>
</subparagraph><subparagraph id="H30344159E81942D29AB323DB130072AF"><enum>(C)</enum><header>Criminal history record check requested by Association</header>
<clause id="H168CFD470F3D4949B005238102C442C9"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The Association shall, upon request by an insurance producer licensed in a State, submit
fingerprints 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.</text>
</clause><clause id="H8DBCACB4C25845DBB7EB44CDADFEC139"><enum>(ii)</enum><header>Procedures</header><text display-inline="yes-display-inline">The board of directors of the Association (referred to in this subtitle as the <term>Board</term>) shall prescribe procedures for obtaining and utilizing fingerprints or other identification
information and criminal history record information, including the
establishment of reasonable fees to defray the expenses of the Association
in connection with the performance of a criminal history record check and
appropriate safeguards for maintaining confidentiality and security of the
information. Any fees charged pursuant to this clause shall be separate
and distinct from those charged by the Attorney General pursuant to
subparagraph (I).</text>
</clause></subparagraph><subparagraph id="H2EA61B6BD9AC46D4A716A1D3DAEFE414"><enum>(D)</enum><header>Form of request</header><text display-inline="yes-display-inline">A submission under subparagraph (C)(i) shall include such fingerprints or other identification
information as is required by the Attorney General concerning the person
about whom the criminal history record check is requested, and a statement
signed by the person authorizing the Attorney General to provide the
information to the Association and for the Association to receive the
information.</text>
</subparagraph><subparagraph id="H8A1EE8199B3C491F9C1F4E32A5A38C67"><enum>(E)</enum><header>Provision of information by Attorney General</header><text display-inline="yes-display-inline">Upon receiving a submission under subparagraph (C)(i) from the Association, the Attorney General
shall search all criminal history records of the Federal Bureau of
Investigation, including records of the Criminal Justice Information
Services Division of the Federal Bureau of Investigation, that the
Attorney 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.</text>
</subparagraph><subparagraph id="HA6254CA2699741D1A1514AA651685C02"><enum>(F)</enum><header>Limitation on permissible uses of information</header><text>Any information provided to the Association under subparagraph (E) may only—</text>
<clause id="HF516B1B547AE4479BF55E87C974F5262"><enum>(i)</enum><text>be used for purposes of determining compliance with membership criteria established by the
Association;</text>
</clause><clause id="H781FFA13C2E04CAC8C674DD6EAB16144"><enum>(ii)</enum><text>be disclosed to State insurance regulators, or Federal or State law enforcement agencies, in
conformance with applicable law; or</text>
</clause><clause id="H81605A3FABE4456BA300EA07E6AFE7F0"><enum>(iii)</enum><text>be disclosed, upon request, to the insurance producer to whom the criminal history record
information relates.</text>
</clause></subparagraph><subparagraph id="H0A354A376FF8412D868F5CDDF8B34F8A"><enum>(G)</enum><header>Penalty for improper use or disclosure</header><text display-inline="yes-display-inline">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 not more than $50,000 per
violation as determined by a court of competent jurisdiction.</text>
</subparagraph><subparagraph id="H9D1CC4DA94524069A578A813A6C14946"><enum>(H)</enum><header>Reliance on information</header><text>Neither the Association nor any of its Board members, 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.</text>
</subparagraph><subparagraph id="H150028ECB68F44B586ECF3B879810483"><enum>(I)</enum><header>Fees</header><text>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.</text>
</subparagraph><subparagraph id="H2C6CBBFC93664BAD88C6B9B37580A7DD"><enum>(J)</enum><header>Rule of construction</header><text>Nothing in this paragraph shall be construed as—</text>
<clause id="HCDCB2ED21CFF48DA80648FD6C4F7D1DC"><enum>(i)</enum><text>requiring a State insurance regulator to perform criminal history record checks under this section;
or</text>
</clause><clause id="H3C73C4DC5A374B899C7988578DFBA044"><enum>(ii)</enum><text>limiting any other authority that allows access to criminal history records.</text>
</clause></subparagraph><subparagraph id="H979C026EC626466D8B223F4D1FFD7263"><enum>(K)</enum><header>Regulations</header><text>The Attorney General shall prescribe regulations to carry out this paragraph, which shall include—</text>
<clause id="HAC9100191BBA4F9E91619C4651B8C57F"><enum>(i)</enum><text>appropriate protections for ensuring the confidentiality of information provided under subparagraph
(E); and</text>
</clause><clause id="H0E62A2069BE547AE8079210E3F211627"><enum>(ii)</enum><text>procedures providing a reasonable opportunity for an insurance producer to contest the accuracy of
information regarding the insurance producer provided under subparagraph
(E).</text>
</clause></subparagraph><subparagraph id="H32D08B738B86490BA030335A08288E3E"><enum>(L)</enum><header>Ineligibility for membership</header>
<clause id="HE2D7730CCCFE43A9B1B70C09E87E14A6"><enum>(i)</enum><header>In general</header><text>The Association may, under reasonably consistently applied standards, deny membership to an
insurance producer on the basis of criminal history record information
provided under subparagraph (E), or where the insurance producer has been
subject to disciplinary action, as described in paragraph (2).</text>
</clause><clause id="H6E598706FAE7415BB9246802BA105E39"><enum>(ii)</enum><header>Rights of applicants denied membership</header><text>The Association shall notify any insurance producer who is denied membership on the basis of
criminal history record information provided under subparagraph (E) of the
right of the insurance producer to—</text>
<subclause id="H34632EADFE8D419191303621065DB62C"><enum>(I)</enum><text>obtain a copy of all criminal history record information provided to the Association under
subparagraph (E) with respect to the insurance producer; and</text>
</subclause><subclause id="HF34D75A61E5443B1985A9AE72AEF260A"><enum>(II)</enum><text>challenge the denial of membership based on the accuracy and completeness of the information.</text>
</subclause></clause></subparagraph><subparagraph id="HBD9DFF07C0AC494BBA06CE4993CEC206"><enum>(M)</enum><header>Definition</header><text>For purposes of this paragraph, the term <term>criminal history record check</term> means a national background check of criminal history records of the Federal Bureau of
Investigation.</text>
</subparagraph></paragraph></subsection><subsection id="H9FA14F63AFE4435A8115D458DFFD53FD"><enum>(b)</enum><header>Authority To establish membership criteria</header><text>The Association may establish membership criteria that bear a reasonable relationship to the
purposes for which the Association was established.</text>
</subsection><subsection id="H7EBB9569F0244E3FA9270E59F8A1D72C"><enum>(c)</enum><header>Establishment of classes and categories of membership</header>
<paragraph id="HAD39039330024760B621FCE397F8792F"><enum>(1)</enum><header>Classes of membership</header><text>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.</text>
</paragraph><paragraph id="HA3E434B8F2194A9F92D7BABAFF3CA5B2"><enum>(2)</enum><header>Business entities</header><text>The Association shall establish a class of membership and membership criteria for business
entities. A business entity that applies for membership shall be required
to designate an individual Association member responsible for the
compliance of the business entity with Association standards and the
insurance laws, standards, and regulations of any State in which the
business entity seeks to do business on the basis of Association
membership.</text>
</paragraph><paragraph id="H8EF7BFC70011456B9D239A13AE3EC7F7"><enum>(3)</enum><header>Categories</header>
<subparagraph id="H12314DC73AFD437CBF7B75831851728A"><enum>(A)</enum><header>Separate categories for insurance producers permitted</header><text>The Association may establish separate categories of membership for insurance producers and for
other persons or entities within each class, based on the types of
licensing categories that exist under State laws.</text>
</subparagraph><subparagraph id="H499D06466975404AB34CEBA25C46B720"><enum>(B)</enum><header>Separate treatment for depository institutions prohibited</header><text>No special categories of membership, and no distinct membership criteria, shall be established for
members that are depository institutions or for employees, agents, or
affiliates of depository institutions.</text>
</subparagraph></paragraph></subsection><subsection id="H4D8DD3221B8A43558139B4DF14B1DBDE"><enum>(d)</enum><header>Membership criteria</header>
<paragraph id="H6BF1D583F69442CDB96F81BDC942A876"><enum>(1)</enum><header>In general</header><text>The Association may establish 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 membership fees.</text>
</paragraph><paragraph id="H16327A527D354992AA807049A190AB2F"><enum>(2)</enum><header>Qualifications</header><text>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 Insurance Commissioners (referred to in this subtitle as
the <term>NAIC</term>) Producer Licensing Model Act in effect as of the date of enactment of the <short-title>National Association of Registered Agents and Brokers Reform Act of 2015</short-title>, and shall consider the highest levels of insurance producer qualifications established under the
licensing laws of the States.</text>
</paragraph><paragraph id="H5720CB2312584C8695033182574393FC"><enum>(3)</enum><header>Assistance from States</header>
<subparagraph id="H9AF1F919218F456BB6B7A3EB98755DD4"><enum>(A)</enum><header>In general</header><text>The Association may request a State to provide assistance in investigating and evaluating the
eligibility of a prospective member for membership in the Association.</text>
</subparagraph><subparagraph id="HECDDDF6E20BA4E6D84C4C019B078F387"><enum>(B)</enum><header>Authorization of information sharing</header><text>A submission under subsection (a)(4)(C)(i) made by an insurance producer licensed in a State shall
include a statement signed by the person about whom the assistance is
requested authorizing—</text>
<clause id="H873E1DE3AEBD4AFD97E69F560865EE78"><enum>(i)</enum><text>the State to share information with the Association; and</text>
</clause><clause id="H053C72D5750C4B24B7D3E8F752982AC0"><enum>(ii)</enum><text>the Association to receive the information.</text>
</clause></subparagraph><subparagraph id="HD50AA644563640EA8BE16AE254FD9C69"><enum>(C)</enum><header>Rule of construction</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HA5E7999084FE43118C4E9EF38AD8839D"><enum>(4)</enum><header>Denial of membership</header><text>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.</text>
</paragraph></subsection><subsection id="HC7AAF6D24F84409F91A5126320CD599B"><enum>(e)</enum><header>Effect of membership</header>
<paragraph id="H3A9B1772FA8849F18E35D83116FC9EA1"><enum>(1)</enum><header>Authority of association members</header><text>Membership in the Association shall—</text>
<subparagraph id="HCC6B89BE527B42699B5E5609143B401D"><enum>(A)</enum><text>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 insurance producer,
and exercise all such incidental powers as shall be necessary to carry out
such activities, including claims adjustments and settlement to the extent
permissible under the laws of the State, risk management, employee
benefits advice, retirement planning, and any other insurance-related
consulting activities;</text>
</subparagraph><subparagraph id="HFDA7D8152C934303A27E2B15755F1C13"><enum>(B)</enum><text>be the equivalent of a nonresident insurance producer license for purposes of authorizing the
insurance producer to engage in the activities described in subparagraph
(A) in any State where the member pays the licensing fee; and</text>
</subparagraph><subparagraph id="H8C66E577DCA54A3382B42A207E0FA4C8"><enum>(C)</enum><text>be the equivalent of a nonresident insurance producer license for the purpose of subjecting an
insurance producer to all laws, regulations, provisions or other action of
any State concerning revocation, suspension, or other enforcement 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).</text>
</subparagraph></paragraph><paragraph id="H95200E4E70374E3C8AAB4F5797A5005C"><enum>(2)</enum><header>Violent Crime Control and Law Enforcement Act of 1994</header><text>Nothing in this subtitle shall be construed to alter, modify, or supercede any requirement
established by <external-xref legal-doc="usc" parsable-cite="usc/18/1033">section 1033</external-xref> of title 18, United States Code.</text>
</paragraph><paragraph id="HAEAAC839B0BA448DA3E46177102DB61B"><enum>(3)</enum><header>Agent for remitting fees</header><text>The Association shall act as an agent for any member for purposes of remitting licensing fees to
any State pursuant to paragraph (1).</text>
</paragraph><paragraph id="H85884413672445EBB3B8E90723D83D39"><enum>(4)</enum><header>Notification of action</header>
<subparagraph id="H92697387407443439E808CDBCF243D72"><enum>(A)</enum><header>In general</header><text>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 insurance 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.</text>
</subparagraph><subparagraph id="H427482A5ADA045BDAF96112947222D9F"><enum>(B)</enum><header>Ongoing disclosures required</header><text>On an ongoing basis, the Association shall disclose to the States (including State insurance
regulators) and the NAIC a list of the States in which each member is
authorized to operate. The Association shall immediately notify the States
(including State insurance regulators) and the NAIC when a member is newly
authorized to operate in one or more States, or is no longer authorized to
operate in one or more States on the basis of Association membership.</text>
</subparagraph></paragraph><paragraph id="HE1D6E366CE4943A69877B92C401DDCE8"><enum>(5)</enum><header>Preservation of consumer protection and market conduct regulation</header>
<subparagraph id="H16975382D3104DBEBF932EBE9DC776DF"><enum>(A)</enum><header>In general</header><text>No provision of this section shall be construed as altering or affecting the applicability or
continuing effectiveness of any law, regulation, provision, or other
action of any State, including those described in subparagraph (B), to the
extent that the State law, regulation, provision, or other action is not
inconsistent with the provisions of this subtitle related to market entry
for nonresident insurance producers, and then only to the extent of the
inconsistency.</text>
</subparagraph><subparagraph id="HCA1DBECC4E9947E19FC2C3D73A3D75C4"><enum>(B)</enum><header>Preserved regulations</header><text>The laws, regulations, provisions, or other actions of any State referred to in subparagraph (A)
include laws, regulations, provisions, or other actions that—</text>
<clause id="H9C10C9060ED14F1F87DE1ED8E8A9273C"><enum>(i)</enum><text>regulate market conduct, insurance producer conduct, or unfair trade practices;</text>
</clause><clause id="H41D778428DE94C6AB8A3F5E6CECE54A8"><enum>(ii)</enum><text>establish consumer protections; or</text>
</clause><clause id="HEE4BFC0EA74E417B8A2879831E70E5AC"><enum>(iii)</enum><text>require insurance producers to be appointed by a licensed or authorized insurer.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HE889E643D87B4932B6B0B4D7D8EE5A86"><enum>(f)</enum><header>Biennial renewal</header><text>Membership in the Association shall be renewed on a biennial basis.</text>
</subsection><subsection id="HF93A1F67F7AD4755BDA5703F5025BC02"><enum>(g)</enum><header>Continuing education</header>
<paragraph id="H5D8778C11CFD45DAB3E1AB4F0ABA6BA9"><enum>(1)</enum><header>In general</header><text>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.</text>
</paragraph><paragraph id="H27284839AEB841C38F2F8AC9CF495E7C"><enum>(2)</enum><header>State continuing education requirements</header><text>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.</text>
</paragraph><paragraph id="HCA1F58C2949648368131CE7003FDB421"><enum>(3)</enum><header>Reciprocity</header><text>The Association shall not require a member to satisfy continuing education requirements that are
equivalent to any continuing education requirements of the home State of
the member that have been satisfied by the member during the applicable
licensing period.</text>
</paragraph><paragraph id="HEACE67D8EAED48AC8302796B6ABBFA73"><enum>(4)</enum><header>Limitation on the Association</header><text>The Association shall not directly or indirectly offer any continuing education courses for
insurance producers.</text>
</paragraph></subsection><subsection id="H420F6263E75A4EE1927D663D60666BC5"><enum>(h)</enum><header>Probation, suspension and revocation</header>
<paragraph id="H920FD59784F74F35836C1CE84D61CB20"><enum>(1)</enum><header>Disciplinary action</header><text>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
Association, or assess monetary fines or penalties, as the Association
determines to be appropriate, if—</text>
<subparagraph id="HE2F5CB205B6543F69F101BE6BD8FA3AE"><enum>(A)</enum><text>the insurance producer fails to meet the applicable membership criteria or other standards
established by the Association;</text>
</subparagraph><subparagraph id="HBAE301C018E545F9A55EF658B0062685"><enum>(B)</enum><text>the insurance producer has been subject to disciplinary action pursuant to a final adjudicatory
proceeding under the jurisdiction of a State insurance regulator;</text>
</subparagraph><subparagraph id="H2F3D4A555FF04C43825C51C876A68944"><enum>(C)</enum><text>an insurance license held by the insurance producer has been suspended or revoked by a State
insurance regulator; or</text>
</subparagraph><subparagraph id="H365FABFC201C4C44AB56A86D5F05BF3D"><enum>(D)</enum><text>the insurance producer has been convicted of a crime that would have resulted in the denial of
membership pursuant to subsection (a)(4)(L)(i) at the time of application,
and the Association has received a copy of the final disposition from a
court of competent jurisdiction.</text>
</subparagraph></paragraph><paragraph id="HFA469624A56D48F5B3525470C175A97F"><enum>(2)</enum><header>Violations of Association standards</header><text>The Association shall have the power to investigate alleged violations of Association standards.</text>
</paragraph><paragraph id="H76F321AD1DB44F5491D0DCC8D3885B60"><enum>(3)</enum><header>Reporting</header><text>The Association shall immediately notify the States (including State insurance regulators) and the
NAIC when the membership of an insurance producer has been placed on
probation or has been suspended, revoked, or otherwise terminated, or when
the Association has assessed monetary fines or penalties.</text>
</paragraph></subsection><subsection id="H6EFA3912CCF24D99BD744B45994ED568"><enum>(i)</enum><header>Consumer complaints</header>
<paragraph id="H5DAAABE2C089472E957FDF11FF6611B2"><enum>(1)</enum><header>In general</header><text>The Association shall—</text>
<subparagraph id="H14BBE223E19C41909A7D2FB18113D496"><enum>(A)</enum><text>refer any complaint against a member of the Association from a consumer relating to alleged
misconduct or violations of State insurance laws to the State insurance
regulator where the consumer resides and, when appropriate, to any
additional State insurance regulator, as determined by standards adopted
by the Association; and</text>
</subparagraph><subparagraph id="H2C227E3371B747F7A64A17C407BC3ADA"><enum>(B)</enum><text>make any related records and information available to each State insurance regulator to whom the
complaint is forwarded.</text>
</subparagraph></paragraph><paragraph id="H8F8B92EA013E48C4829317145DF17DAD"><enum>(2)</enum><header>Telephone and other access</header><text>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.</text>
</paragraph><paragraph id="H3364EF8F85FF488C8CBAA0F45B481A8D"><enum>(3)</enum><header>Final disposition of investigation</header><text>State insurance regulators shall provide the Association 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
Association.</text>
</paragraph></subsection><subsection id="HB15710F283EC4DFD8A246B7FD7205D08"><enum>(j)</enum><header>Information sharing</header><text>The Association may—</text>
<paragraph id="H07C6B4A593EB423284A200248BD2DDEA"><enum>(1)</enum><text>share documents, materials, or other information, including confidential and privileged documents,
with a State, Federal, or international governmental entity or with the
NAIC or other appropriate entity referred to paragraphs (3) and (4),
provided that the recipient has the authority and agrees to maintain the
confidentiality or privileged status of the document, material, or other
information;</text>
</paragraph><paragraph id="H5FF86250D10D4573A47D23174383202F"><enum>(2)</enum><text>limit the sharing of information as required under this subtitle with the NAIC or any other
non-governmental entity, in circumstances under which the Association
determines that the sharing of such information is unnecessary to further
the purposes of this subtitle;</text>
</paragraph><paragraph id="H06D996F0AE3D4EE8B25AAFE8CF6860B1"><enum>(3)</enum><text>establish a central clearinghouse, or utilize the NAIC or another appropriate entity, as determined
by the Association, as a central clearinghouse, for use by the Association
and the States (including State insurance regulators), through which
members of the Association may disclose their intent to operate in 1 or
more States and pay the licensing fees to the appropriate States; and</text>
</paragraph><paragraph id="H656B2294EBB14156AFBCDBC9DBD4D09A"><enum>(4)</enum><text>establish a database, or utilize the NAIC or another appropriate entity, as determined by the
Association, as a database, for use by the Association and the States
(including State insurance regulators) for the collection of regulatory
information concerning the activities of insurance producers.</text>
</paragraph></subsection><subsection id="H9EBAF8793DEE46B0A396D6FEEE6E0160"><enum>(k)</enum><header>Effective Date</header><text>The provisions of this section shall take effect on the later of—</text>
<paragraph id="H9D1C3118A61441FE89E1218D7F2B96E7"><enum>(1)</enum><text>the expiration of the 2-year period beginning on the date of enactment of the <short-title>National Association of Registered Agents and Brokers Reform Act of 2015</short-title>; and</text>
</paragraph><paragraph id="H779DDD54EBA34D168F9A7CC01082FD8C"><enum>(2)</enum><text>the date of incorporation of the Association.</text>
</paragraph></subsection></section><section id="H8F69F29EDDB6484CBD2DCB319E5D3E45"><enum>324.</enum><header>Board of directors</header>
<subsection id="H66FCF4A14E674C2296EB1F91186E9BCA"><enum>(a)</enum><header>Establishment</header><text>There is established a board of directors of the Association, which shall have authority to govern
and supervise all activities of the Association.</text>
</subsection><subsection id="H06AFA467692F4B9A99D6987BB79C7E51"><enum>(b)</enum><header>Powers</header><text>The Board shall have such of the powers and authority of the Association as may be specified in the
bylaws of the Association.</text>
</subsection><subsection id="H29861DBC08F840AA925915D30CA21767"><enum>(c)</enum><header>Composition</header>
<paragraph id="HD33AB975DB3045C3A78BCA62A816D528"><enum>(1)</enum><header>In general</header><text>The Board shall consist of 13 members who shall be appointed by the President, by and with the
advice and consent of the Senate, in accordance with the procedures
established under Senate Resolution 116 of the 112th Congress, of whom—</text>
<subparagraph id="H024592769171427CB4B066D3F6811D55"><enum>(A)</enum><text>8 shall be State insurance commissioners appointed in the manner provided in paragraph (2), 1 of
whom shall be designated by the President to serve as the chairperson of
the Board until the Board elects one such State insurance commissioner
Board member to serve as the chairperson of the Board;</text>
</subparagraph><subparagraph id="H8A44539453FF41D596F027C6A5B83DE1"><enum>(B)</enum><text>3 shall have demonstrated expertise and experience with property and casualty insurance producer
licensing; and</text>
</subparagraph><subparagraph id="HAA78A8758B664DC3B05BBFD976F7402A"><enum>(C)</enum><text display-inline="yes-display-inline">2 shall have demonstrated expertise and experience with life or health insurance producer
licensing.</text>
</subparagraph></paragraph><paragraph id="H0AFCF169D2744C9B81F71943FEA8F398"><enum>(2)</enum><header>State insurance regulator representatives</header>
<subparagraph id="H8D914854E5F54A8C9EF9B88EFB0761AD"><enum>(A)</enum><header>Recommendations</header><text>Before making any appointments pursuant to paragraph (1)(A), the President shall request a list of
recommended candidates from the States through the NAIC, which shall not
be binding on the 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.</text>
</subparagraph><subparagraph id="HED59E82747674B52A150B7CBA59D36E4"><enum>(B)</enum><header>Political affiliation</header><text>Not more than 4 Board members appointed under paragraph (1)(A) shall belong to the same political
party.</text>
</subparagraph><subparagraph id="HCEC3FC67293545A59E0A328162B81E1B"><enum>(C)</enum><header>Former State insurance commissioners</header>
<clause id="H25F95FD1F5CB4CF3A284CB409D59CCAE"><enum>(i)</enum><header>In general</header><text>If, after offering each currently serving State insurance commissioner an appointment to the Board,
fewer than 8 State insurance commissioners have accepted appointment to
the Board, the President may appoint the remaining State insurance
commissioner Board members, as required under paragraph (1)(A), of the
appropriate political party as required under subparagraph (B), from among
individuals who are former State insurance commissioners.</text>
</clause><clause id="H558ED5155B404F608A9EA73F0324406D"><enum>(ii)</enum><header>Limitation</header><text>A former State insurance commissioner appointed as described in clause (i) may not be employed by
or have any present direct or indirect financial interest in any insurer,
insurance producer, or other entity in the insurance industry, other than
direct or indirect ownership of, or beneficial interest in, an insurance
policy or annuity contract written or sold by an insurer.</text>
</clause></subparagraph><subparagraph id="H987707A2C36C40D0B089FFD0E5BF074B"><enum>(D)</enum><header>Service through term</header><text>If a Board member appointed under paragraph (1)(A) ceases to be a State insurance commissioner
during the term of the Board member, the Board member shall cease to be a
Board member.</text>
</subparagraph></paragraph><paragraph id="H4ABA17C78CAA40EC8FF76F510D0BDC14"><enum>(3)</enum><header>Private sector representatives</header><text>In making any appointment pursuant to subparagraph (B) or (C) of paragraph (1), the President may
seek recommendations for candidates from groups representing the category
of individuals described, which shall not be binding on the President.</text>
</paragraph><paragraph id="HC2CB50576AB44B80B37B484EE6290986"><enum>(4)</enum><header>State insurance commissioner defined</header><text>For purposes of this subsection, the term <term>State insurance commissioner</term> 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.</text>
</paragraph></subsection><subsection id="H92FF005AF019424293D9707BEE61C3AF"><enum>(d)</enum><header>Terms</header>
<paragraph id="HDF8740C9DF5A4B0FAD9AEA295CE7DA38"><enum>(1)</enum><header>In general</header><text>Except as provided under paragraph (2), the term of service for each Board member shall be 2 years.</text>
</paragraph><paragraph id="HC87AFE9853BF495AB72CA8EBF7AC8BDC"><enum>(2)</enum><header>Exceptions</header>
<subparagraph id="HF2BF37DE0B2B42D292664D787E5779F9"><enum>(A)</enum><header>1-year terms</header><text>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—</text>
<clause id="HD95DCEF45B26434E9C5EABBC4B324711"><enum>(i)</enum><text>4 of the State insurance commissioner Board members initially appointed under paragraph (1)(A), of
whom not more than 2 shall belong to the same political party;</text>
</clause><clause id="H903DB39A337343C78839D6531FF03CCC"><enum>(ii)</enum><text>1 of the Board members initially appointed under paragraph (1)(B); and</text>
</clause><clause id="HFBF653775CCA43A5B5D38F6C6BA54A9E"><enum>(iii)</enum><text>1 of the Board members initially appointed under paragraph (1)(C).</text>
</clause></subparagraph><subparagraph id="HA727C16AA0234B799E1F7D051A9DFDF6"><enum>(B)</enum><header>Expiration of Term</header><text>A Board member may continue to serve after the expiration of the term to which the Board member was
appointed for the earlier of 2 years or until a successor is appointed.</text>
</subparagraph><subparagraph id="H74BBBC3AEA174CCFB605C50D0588846B"><enum>(C)</enum><header>Mid-term appointments</header><text>A Board member appointed to fill a vacancy occurring before the expiration of the term for which
the predecessor of the Board member was appointed shall be appointed only
for the remainder of that term.</text>
</subparagraph></paragraph><paragraph id="H98C270F1E25E4300B942285FC60DDB07"><enum>(3)</enum><header>Successive terms</header><text>Board members may be reappointed to successive terms.</text>
</paragraph></subsection><subsection id="H6FCE97102BED46A08E5CB2703801B31C"><enum>(e)</enum><header>Initial appointments</header><text>The appointment of initial Board members shall be made no later than 90 days after the date of
enactment of the <short-title>National Association of Registered Agents and Brokers Reform Act of 2015</short-title>.</text>
</subsection><subsection id="H7B31406E93E6448781ACE4D5EC98B04C"><enum>(f)</enum><header>Meetings</header>
<paragraph id="HF6C01AFA8D2E432D8E8C734AE12A141D"><enum>(1)</enum><header>In general</header><text>The Board shall meet—</text>
<subparagraph id="HD8D19CE72FBF4C15AEC39CF5D60F85D9"><enum>(A)</enum><text>at the call of the chairperson;</text>
</subparagraph><subparagraph id="H40769109FA9045AFAED47694BACD3E9B"><enum>(B)</enum><text>as requested in writing to the chairperson by not fewer than 5 Board members; or</text>
</subparagraph><subparagraph id="H546383126A794BC5AA4C243CC5453A92"><enum>(C)</enum><text>as otherwise provided by the bylaws of the Association.</text>
</subparagraph></paragraph><paragraph id="HDA5DB8FA82214B93833C2293B145BE22"><enum>(2)</enum><header>Quorum required</header><text>A majority of all Board members shall constitute a quorum.</text>
</paragraph><paragraph id="HA072B854F8CC447199A5E50DDBA53AD4"><enum>(3)</enum><header>Voting</header><text>Decisions of the Board shall require the approval of a majority of all Board members present at a
meeting, a quorum being present.</text>
</paragraph><paragraph id="H0E04DE64D0974AB7AA8B4CF299A0EC65"><enum>(4)</enum><header>Initial meeting</header><text>The Board shall hold its first meeting not later than 45 days after the date on which all initial
Board members have been appointed.</text>
</paragraph></subsection><subsection id="HD5FEA219396444F6AC86528F9632D842"><enum>(g)</enum><header>Restriction on confidential information</header><text>Board members appointed pursuant to subparagraphs (B) and (C) of subsection (c)(1) shall not have
access to confidential information received by the Association in
connection with complaints, investigations, or disciplinary proceedings
involving insurance producers.</text>
</subsection><subsection id="H8F0C71D60C424F8BA254393057BA29E7"><enum>(h)</enum><header>Ethics and conflicts of interest</header><text>The Board shall issue and enforce an ethical conduct code to address permissible and prohibited
activities of Board members and Association officers, employees, agents,
or consultants. The code shall, at a minimum, include provisions that
prohibit any Board member or Association officer, employee, agent or
consultant from—</text>
<paragraph id="H7A87D2F94F444F67AADA56D3E1DD6404"><enum>(1)</enum><text>engaging in unethical conduct in the course of performing Association duties;</text>
</paragraph><paragraph id="HA44E66F27BF74BC5B9207F50BF5E4063"><enum>(2)</enum><text>participating in the making or influencing the making of any Association decision, the outcome of
which the Board member, officer, employee, agent, or consultant knows or
had reason to know would have a reasonably foreseeable material financial
effect, distinguishable from its effect on the public generally, on the
person or a member of the immediate family of the person;</text>
</paragraph><paragraph id="H54CD5B9AD5974B978A06AAFF7B0C2BE3"><enum>(3)</enum><text>accepting any gift from any person or entity other than the Association that is given because of
the position held by the person in the Association;</text>
</paragraph><paragraph id="HF4BDE0A2C0CC4F289C95A7811E3C798B"><enum>(4)</enum><text>making political contributions to any person or entity on behalf of the Association; and</text>
</paragraph><paragraph id="H874E5CE8EDEE4225B7DA722CDD7C9C02"><enum>(5)</enum><text>lobbying or paying a person to lobby on behalf of the Association.</text>
</paragraph></subsection><subsection id="H141CAE34044C46E5B2F1FA2A6CD832B6"><enum>(i)</enum><header>Compensation</header>
<paragraph id="H009710E34CFE440A90301FC3C6FC2B40"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), no Board member may receive any compensation from the
Association or any other person or entity on account of Board membership.</text>
</paragraph><paragraph id="HCF1B98D13A434627BC78E6F6618FDE81"><enum>(2)</enum><header>Travel expenses and per diem</header><text>Board members may be reimbursed only by the Association for travel expenses, including per diem in
lieu of subsistence, at rates consistent with rates authorized for
employees of Federal agencies under subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5,
United States Code, while away from home or regular places of business in
performance of services for the Association.</text>
</paragraph></subsection></section><section id="H594902E9E1DD4BF7BF2D4C0CFE5DB6EF"><enum>325.</enum><header>Bylaws, standards, and disciplinary actions</header>
<subsection id="HA609D68376EF4E22B41078A0D228FBAC"><enum>(a)</enum><header>Adoption and amendment of bylaws and standards</header>
<paragraph id="H8A0634F92DD54C8A86CA30892F1128C5"><enum>(1)</enum><header>Procedures</header><text>The Association shall adopt procedures for the adoption of bylaws and standards that are similar to
procedures under subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code
(commonly known as the <quote>Administrative Procedure Act</quote>).</text>
</paragraph><paragraph id="H03F86CDE7FEA44A6997FAAA252CAA594"><enum>(2)</enum><header>Copy required to be filed</header><text>The Board shall submit to the President, through the Department of the Treasury, and the States
(including State insurance regulators), and shall publish on the website
of the Association, all proposed bylaws and standards of the Association,
or any proposed amendment to the bylaws or standards of the Association,
accompanied by a concise general statement of the basis and purpose of
such proposal.</text>
</paragraph><paragraph id="H36555399F41B445199B559249327D1B4"><enum>(3)</enum><header>Effective date</header><text>Any proposed bylaw or standard of the Association, and any proposed amendment to the bylaws or
standards of the Association, shall take effect, after notice under
paragraph (2) and opportunity for public comment, on such date as the
Association may designate, unless suspended under section 329(c).</text>
</paragraph><paragraph id="HA9BE74E53AF749348684104BF43D11CD"><enum>(4)</enum><header>Rule of construction</header><text>Nothing in this section shall be construed to subject the Board or the Association to the
requirements of subchapter II of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/5">chapter 5</external-xref> of title 5, United States Code
(commonly known as the <quote>Administrative Procedure Act</quote>).</text>
</paragraph></subsection><subsection id="H5E81A45C8072457593F44F6B288AC8F2"><enum>(b)</enum><header>Disciplinary action by the Association</header>
<paragraph id="HC2ADB4CA85BD4CBF9AE74D4A6C044CA9"><enum>(1)</enum><header>Specification of charges</header><text>In any proceeding to determine whether membership shall be denied, suspended, revoked, or not
renewed, or to determine whether a member of the Association should be
placed on probation (referred to in this section as a <quote>disciplinary action</quote>) or whether to assess fines or monetary penalties, the Association shall bring specific charges,
notify the member of the charges, give the member an opportunity to defend
against the charges, and keep a record.</text>
</paragraph><paragraph id="HFD05B70F656345A28CB734C34DB9E2E1"><enum>(2)</enum><header>Supporting statement</header><text>A determination to take disciplinary action shall be supported by a statement setting forth—</text>
<subparagraph id="H3FBF534A737E4106B9F1089C7B9941BC"><enum>(A)</enum><text>any act or practice in which the member has been found to have been engaged;</text>
</subparagraph><subparagraph id="H7A6FA082242C4317AB2E814CDEB51A83"><enum>(B)</enum><text>the specific provision of this subtitle or standard of the Association that any such act or
practice is deemed to violate; and</text>
</subparagraph><subparagraph id="HEBACFFD92AE047ADA2B67B23AA1B9B44"><enum>(C)</enum><text>the sanction imposed and the reason for the sanction.</text>
</subparagraph></paragraph><paragraph id="H45305CC6F7794F86843B2262168A5BFA"><enum>(3)</enum><header>Ineligibility of private sector representatives</header><text>Board members appointed pursuant to section 324(c)(3) may not—</text>
<subparagraph id="HB213C5B5F6604CE085F73C5A42CEB0D7"><enum>(A)</enum><text>participate in any disciplinary action or be counted toward establishing a quorum during a
disciplinary action; and</text>
</subparagraph><subparagraph id="HE4B6C6D11B7A446AA5ABCBD62D52CBD7"><enum>(B)</enum><text>have access to confidential information concerning any disciplinary action.</text>
</subparagraph></paragraph></subsection></section><section id="H8A07A37698B04CC1B44052B5241A11BE"><enum>326.</enum><header>Powers</header><text display-inline="no-display-inline">In addition to all the powers conferred upon a nonprofit corporation by the District of Columbia
Nonprofit Corporation Act, the Association shall have the power to—</text>
<paragraph id="H538EB8EA66244731B2DC52F6D0CB6262"><enum>(1)</enum><text>establish and collect such membership fees as the Association finds necessary to impose to cover
the costs of its operations;</text>
</paragraph><paragraph id="H54D789B4D4E846198C5E441E191082E2"><enum>(2)</enum><text>adopt, amend, and repeal bylaws, procedures, or standards governing the conduct of Association
business and performance of its duties;</text>
</paragraph><paragraph id="HB1270699804F42EFB9F78BB8B3D25BBB"><enum>(3)</enum><text>establish procedures for providing notice and opportunity for comment pursuant to section 325(a);</text>
</paragraph><paragraph id="HD40D49CB79BB428BB8AA1606D606D2B5"><enum>(4)</enum><text>enter into and perform such agreements as necessary to carry out the duties of the Association;</text>
</paragraph><paragraph id="H973D092E353B47938654554AD61FA78E"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="H55403592D22E49CFB3ACED8C2445AA5B"><enum>(6)</enum><text>establish personnel policies of the Association and programs relating to, among other things,
conflicts of interest, rates of compensation, where applicable, and
qualifications of personnel;</text>
</paragraph><paragraph id="HD7E00C6AFF1A4760A0821546E851DFBD"><enum>(7)</enum><text>borrow money; and</text>
</paragraph><paragraph id="H7622C1BCD863493AB17EF2CA87959FD5"><enum>(8)</enum><text>secure funding for such amounts as the Association determines to be necessary and appropriate to
organize and begin operations of the Association, which shall be treated
as loans to be repaid by the Association with interest at market rate.</text>
</paragraph></section><section id="H91C07DEB81994241991540037E796E00"><enum>327.</enum><header>Report by the Association</header>
<subsection id="HDB8CF2F1055B413B907773A4FC61FE7E"><enum>(a)</enum><header>In general</header><text>As soon as practicable after the close of each fiscal year, the Association shall submit to the
President, through the Department of the Treasury, and the States
(including State insurance regulators), and shall publish on the website
of the Association, a written report regarding the conduct of its
business, and the exercise of the other rights and powers granted by this
subtitle, during such fiscal year.</text>
</subsection><subsection id="H25B18CBF499E45EDB7BC01CA131AC5DD"><enum>(b)</enum><header>Financial statements</header><text>Each report submitted under subsection (a) with respect to any fiscal year shall include audited
financial statements setting forth the financial position of the
Association at the end of such fiscal year and the results of its
operations (including the source and application of its funds) for such
fiscal year.</text>
</subsection></section><section id="H31F1C42849A047C9AF1F59C364CFC30E"><enum>328.</enum><header>Liability of the Association and the Board members, officers, and employees of the Association</header>
<subsection id="H9DF2798B27C74236802C681A0579FE81"><enum>(a)</enum><header>In general</header><text>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.</text>
</subsection><subsection id="HAB426A53D95648A29F31FBB1BBC28D35"><enum>(b)</enum><header>Liability of Board members, officers, and employees</header><text>No Board member, officer, or employee of the Association shall be personally liable to any person
for any action taken or omitted in good faith in any matter within the
scope of their responsibilities in connection with the Association.</text>
</subsection></section><section id="HF75166D516BD475B85D5B6846ACF03CA"><enum>329.</enum><header>Presidential oversight</header>
<subsection id="H46C1E1B0AFA44C79A2CC05077B019921"><enum>(a)</enum><header>Removal of Board</header><text>If the President determines that the Association is acting in a manner contrary to the interests of
the public or the purposes of this subtitle or has failed to perform its
duties under this subtitle, the President may remove the entire existing
Board for the remainder of the term to which the Board members were
appointed and appoint, in accordance with section 324 and with the advice
and consent of the Senate, in accordance with the procedures established
under Senate Resolution 116 of the 112th Congress, new Board members to
fill the vacancies on the Board for the remainder of the terms.</text>
</subsection><subsection id="HE132585919B942199F0CF9BF367ED431"><enum>(b)</enum><header>Removal of Board member</header><text>The President may remove a Board member only for neglect of duty or malfeasance in office.</text>
</subsection><subsection id="H04AB79FD04AE41B09E497AEA533D5B74"><enum>(c)</enum><header>Suspension of bylaws and standards and prohibition of actions</header><text>Following notice to the Board, the President, or a person designated by the President for such
purpose, may suspend the effectiveness of any bylaw or standard, or
prohibit any action, of the Association that the President or the designee
determines is contrary to the purposes of this subtitle.</text>
</subsection></section><section id="H957D3C126798452A856CFABA3A1673A6"><enum>330.</enum><header>Relationship to State law</header>
<subsection id="HAFD5F375039B42D98B1F28361B1014EE"><enum>(a)</enum><header>Preemption of State laws</header><text>State laws, regulations, provisions, or other actions purporting to regulate insurance producers
shall be preempted to the extent provided in subsection (b).</text>
</subsection><subsection id="H3E2BD2857F714EE0BFDD37A040C950C5"><enum>(b)</enum><header>Prohibited actions</header>
<paragraph id="H2059BC62177241EA9744C42F2D9F290C"><enum>(1)</enum><header>In general</header><text>No State shall—</text>
<subparagraph id="H30F217D12AF148BE83680AA82E789725"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H0AE4A51DAAEA4D64971032554EA500C6"><enum>(B)</enum><text>impose any requirement upon a member of the Association that it pay fees different from those
required to be paid to that State were it not a member of the Association;
or</text>
</subparagraph><subparagraph id="H2CA415BB54204FE9B676D31234604AD1"><enum>(C)</enum><text>impose any continuing education requirements on any nonresident insurance producer that is a member
of the Association.</text>
</subparagraph></paragraph><paragraph id="HFEAD3FB14CDC45C6A1EE84E6C345EF05"><enum>(2)</enum><header>States other than a home State</header><text>No State, other than the home State of a member of the Association, shall—</text>
<subparagraph id="HCCC857EC54A6421D9ACC3B2A4DD80798"><enum>(A)</enum><text>impose any licensing, 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;</text>
</subparagraph><subparagraph id="HEE94C3456DF9448FA9D4FB65DD7F3A72"><enum>(B)</enum><text>impose any requirement upon a member of the Association that it be licensed, registered, or
otherwise qualified to do business or remain in good standing in the
State, including any requirement that the insurance producer register as a
foreign company with the secretary of state or equivalent State official;</text>
</subparagraph><subparagraph id="H6E63A4F56DAA47639F38D8347D0C809A"><enum>(C)</enum><text>require that a member of the Association submit to a criminal history record check as a condition
of doing business in the State; or</text>
</subparagraph><subparagraph id="H6AA082F072CB4F498A4D804856058E05"><enum>(D)</enum><text>impose any licensing, registration, or appointment requirements upon a member of the Association,
or require a member of the Association to be authorized to operate as an
insurance producer, in order to sell, solicit, or negotiate insurance for
commercial property and casualty risks to an insured with risks located in
more than one State, if the member is licensed or otherwise authorized to
operate in the State where the insured maintains its principal place of
business and the contract of insurance insures risks located in that
State.</text>
</subparagraph></paragraph><paragraph id="H3E4A0F97638041079E19297B19D35139"><enum>(3)</enum><header>Preservation of State disciplinary authority</header><text>Nothing in this section may be construed to prohibit a State from investigating and taking
appropriate disciplinary action, including suspension or revocation of
authority of an insurance producer to do business in a State, in
accordance with State law and that is not inconsistent with the provisions
of this section, against a member of the Association as a result of a
complaint or for any alleged activity, regardless of whether the activity
occurred before or after the insurance producer commenced doing business
in the State pursuant to Association membership.</text>
</paragraph></subsection></section><section id="H0EE06D35F60A4FD9A676F4B56EC981ED"><enum>331.</enum><header>Coordination with Financial Industry Regulatory Authority</header><text display-inline="no-display-inline">The Association shall coordinate with the Financial Industry Regulatory Authority in order to ease
any administrative burdens that fall on members of the Association that
are subject to regulation by the Financial Industry Regulatory Authority,
consistent with the requirements of this subtitle and the Federal
securities laws.</text>
</section><section id="H752F9E6709FB4A778B187A1430923571"><enum>332.</enum><header>Right of action</header>
<subsection id="H4DC036FA84AE43719183406CD8CA9704"><enum>(a)</enum><header>Right of action</header><text>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.</text>
</subsection><subsection id="HD58D203BA23A4F2DAB57F99C04230427"><enum>(b)</enum><header>Association interpretations</header><text>In any action under subsection (a), the court shall give appropriate weight to the interpretation
of the Association of its bylaws and standards and this subtitle.</text>
</subsection></section><section id="H29C80F29C5DB4B0CA7D9B051146351FB"><enum>333.</enum><header>Federal funding prohibited</header><text display-inline="no-display-inline">The Association may not receive, accept, or borrow any amounts from the Federal Government to pay
for, or reimburse, the Association for, the costs of establishing or
operating the Association.</text>
</section><section id="HE998C552450D4AB797793AD28C012207"><enum>334.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle, the following definitions shall apply:</text>
<paragraph id="H54F8B38DD8FA4FA38315863085CD0D61"><enum>(1)</enum><header>Business entity</header><text>The term <term>business entity</term> means a corporation, association, partnership, limited liability company, limited liability
partnership, or other legal entity.</text>
</paragraph><paragraph id="HC66DEE0BEDA24722BE953ACAC432C9D2"><enum>(2)</enum><header>Depository institution</header><text>The term <term>depository institution</term> has the meaning as in section 3 of the Federal Deposit Insurance Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1813">12 U.S.C. 1813</external-xref>).</text>
</paragraph><paragraph id="HF53DF2C25A594671BE108E6A116D4B67"><enum>(3)</enum><header>Home State</header><text>The term <term>home State</term> 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.</text>
</paragraph><paragraph id="H0AE0D4356697469386AB246FF9F13AAF"><enum>(4)</enum><header>Insurance</header><text>The term <term>insurance</term> means any product, other than title insurance or bail bonds, defined or regulated as insurance by
the appropriate State insurance regulatory authority.</text>
</paragraph><paragraph id="H9C86BC05B975441A8710F3F734AC82CA"><enum>(5)</enum><header>Insurance producer</header><text>The term <term>insurance producer</term> 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 sells, solicits, or negotiates policies of insurance or offers
advice, counsel, opinions or services related to insurance.</text>
</paragraph><paragraph id="H876EA610E5FE4E149C76AB7E8E75843F"><enum>(6)</enum><header>Insurer</header><text>The term <term>insurer</term> has the meaning as in <external-xref legal-doc="usc" parsable-cite="usc/31/313">section 313(e)(2)(B)</external-xref> of title 31, United States Code.</text>
</paragraph><paragraph id="H4454977036E74C78BFD2885B32806E6F"><enum>(7)</enum><header>Principal place of business</header><text>The term <term>principal place of business</term> means the State in which an insurance producer maintains the headquarters of the insurance
producer and, in the case of a business entity, where high-level officers
of the entity direct, control, and coordinate the business activities of
the business entity.</text>
</paragraph><paragraph id="H2B90D292282F4304B0DE30A9CC48ABEE"><enum>(8)</enum><header>Principal place of residence</header><text>The term <term>principal place of residence</term> means the State in which an insurance producer resides for the greatest number of days during a
calendar year.</text>
</paragraph><paragraph id="HE4F791ABBAD3450ABA59DB366A9D20F0"><enum>(9)</enum><header>State</header><text>The term <term>State</term> 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.</text>
</paragraph><paragraph id="HB493F3D449944D6FAAEDDEC69E5A92C6"><enum>(10)</enum><header>State law</header>
<subparagraph id="H9FF82C3964A7482CBBF78A87F7430144"><enum>(A)</enum><header>In general</header><text>The term <term>State law</term> includes all laws, decisions, rules, regulations, or other State action having the effect of law,
of any State.</text>
</subparagraph><subparagraph id="HB5AA74B32E7148BB8819A2BCD7D6527A"><enum>(B)</enum><header>Laws applicable in the District of Columbia</header><text>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.</text></subparagraph></paragraph></section></subtitle><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5354B3535638488D8DE3380F15A12D88"><enum>(b)</enum><header>Technical amendment</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="H557B4B6861124974B5F476E986706B46" style="OLC">
<toc>
<toc-entry idref="H317C9042126446C4B3990413C1B6D2FA" level="subtitle">Subtitle C—National Association of Registered Agents and Brokers</toc-entry>
<toc-entry idref="HC0A81148167343E5835FE3D4F16D1DE4" level="section">Sec. 321. National Association of Registered Agents and Brokers.</toc-entry>
<toc-entry idref="H93B5FCFE9A6349E4A2FAA6BD66EA83DC" level="section">Sec. 322. Purpose.</toc-entry>
<toc-entry idref="HE1EF3DB55D394BA4BB2FC054F6A5CAC7" level="section">Sec. 323. Membership.</toc-entry>
<toc-entry idref="H8F69F29EDDB6484CBD2DCB319E5D3E45" level="section">Sec. 324. Board of directors.</toc-entry>
<toc-entry idref="H594902E9E1DD4BF7BF2D4C0CFE5DB6EF" level="section">Sec. 325. Bylaws, standards, and disciplinary actions.</toc-entry>
<toc-entry idref="H8A07A37698B04CC1B44052B5241A11BE" level="section">Sec. 326. Powers.</toc-entry>
<toc-entry idref="H91C07DEB81994241991540037E796E00" level="section">Sec. 327. Report by the Association.</toc-entry>
<toc-entry idref="H31F1C42849A047C9AF1F59C364CFC30E" level="section">Sec. 328. Liability of the Association and the Board members, officers, and employees of the
Association.</toc-entry>
<toc-entry idref="HF75166D516BD475B85D5B6846ACF03CA" level="section">Sec. 329. Presidential oversight.</toc-entry>
<toc-entry idref="H957D3C126798452A856CFABA3A1673A6" level="section">Sec. 330. Relationship to State law.</toc-entry>
<toc-entry idref="H0EE06D35F60A4FD9A676F4B56EC981ED" level="section">Sec. 331. Coordination with financial industry regulatory authority.</toc-entry>
<toc-entry idref="H752F9E6709FB4A778B187A1430923571" level="section">Sec. 332. Right of action.</toc-entry>
<toc-entry level="section">Sec. 333. Federal funding prohibited.</toc-entry>
<toc-entry idref="HE998C552450D4AB797793AD28C012207" level="section">Sec. 334. Definitions.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><enum>III</enum><header>Business Risk Mitigation and Price Stabilization</header>
<section id="HCA5B0CD008A34BE894074CBC95233E25" section-type="subsequent-section"><enum>301.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the <quote><short-title>Business Risk Mitigation and Price Stabilization Act of 2015</short-title></quote>.</text>
</section><section id="HED2A2A222AF04AA083EC1A69A74849C3"><enum>302.</enum><header>Margin requirements</header>
<subsection id="HBEF4206F1444450BAFFD0A291F43A2D9"><enum>(a)</enum><header>Commodity Exchange Act amendment</header><text display-inline="yes-display-inline">Section 4s(e) of the Commodity Exchange Act (<external-xref legal-doc="usc" parsable-cite="usc/7/6s">7 U.S.C. 6s(e)</external-xref>), as added by section 731 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4C7B0939C6B54C39BF610E49B806591D" style="OLC">
<paragraph id="HB864939185D04EB5912E9312DD5EEE5B"><enum>(4)</enum><header>Applicability with respect to counterparties</header><text display-inline="yes-display-inline">The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii), including the initial and variation
margin requirements imposed by rules adopted pursuant to paragraphs
(2)(A)(ii) and (2)(B)(ii), shall not apply to a swap in which a
counterparty qualifies for an exception under section 2(h)(7)(A), or an
exemption issued under section 4(c)(1) from the requirements of section
2(h)(1)(A) for cooperative entities as defined in such exemption, or
satisfies the criteria in section 2(h)(7)(D).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H307BD51EC19240458B01A8743C56383E"><enum>(b)</enum><header>Securities Exchange Act amendment</header><text display-inline="yes-display-inline">Section 15F(e) of the Securities Exchange Act of 1934 (<external-xref legal-doc="usc" parsable-cite="usc/15/78o-10">15 U.S.C. 78o–10(e)</external-xref>), as added by section
764(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act,
is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H33BC04F031E3478393F543F96A3A1E11" style="OLC">
<paragraph id="H41CE9F3E4DAD4176B39BC5117012C447"><enum>(4)</enum><header>Applicability with respect to counterparties</header><text display-inline="yes-display-inline">The requirements of paragraphs (2)(A)(ii) and (2)(B)(ii) shall not apply to a security-based swap
in which a counterparty qualifies for an exception under section 3C(g)(1)
or satisfies the criteria in section 3C(g)(4).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="HE658CDFFC95B48D4AEE909F9F84AB63B" section-type="subsequent-section"><enum>303.</enum><header>Implementation</header><text display-inline="no-display-inline">The amendments made by this title to the Commodity Exchange Act shall be implemented—</text>
<paragraph id="HF64BFD2FC3F145D1AB6A7F74D2B57F85"><enum>(1)</enum><text>without regard to—</text>
<subparagraph id="H961157E50CAB4022B31A145C18012CE9"><enum>(A)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/44/35">chapter 35</external-xref> of title 44, United States Code; and</text>
</subparagraph><subparagraph id="HD2417D4FE7AE407892249A91A025B7E8"><enum>(B)</enum><text>the notice and comment provisions of <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5, United States Code;</text>
</subparagraph></paragraph><paragraph id="H96ACC62466004BF7A1B3555485247A02"><enum>(2)</enum><text>through the promulgation of an interim final rule, pursuant to which public comment will be sought
before a final rule is issued; and</text>
</paragraph><paragraph id="H56FF13BF1F2B450283A76A8C2CE53569"><enum>(3)</enum><text>such that paragraph (1) shall apply solely to changes to rules and regulations, or proposed rules
and regulations, that are limited to and directly a consequence of such
amendments.</text>
</paragraph></section>
Passed the House of Representatives January 7, 2015.Karen L. Haas,Clerk