National Association of Registered Agents and Brokers Reform Act of 2008

        [Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 5611 Referred in Senate (RFS)]

2d Session
H. R. 5611

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

September 22 (legislative day, September 17), 2008

Received

October 2 (legislative day, September 17), 2008

Read twice and referred to the Committee on Banking, Housing, and
Urban Affairs

_______________________________________________________________________

AN ACT

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

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ``National Association of Registered
Agents and Brokers Reform Act of 2008''.

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

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

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

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

``(a) Establishment.--There is established the National Association
of Registered Agents and Brokers (hereafter in this subtitle referred
to as the `Association').
``(b) Status.--The Association shall--
``(1) be a nonprofit corporation;
``(2) have succession until dissolved by an Act of
Congress;
``(3) not be an agent or instrumentality of the United
States Government; and
``(4) except as otherwise provided in this subtitle, be
subject to, and have all the powers conferred upon a nonprofit
corporation by the District of Columbia Nonprofit Corporation
Act (D.C. Code, sec. 29-301.01 et seq.).

``SEC. 322. PURPOSE.

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

``SEC. 323. MEMBERSHIP.

``(a) Eligibility.--
``(1) In general.--Any insurance producer licensed in its
home State shall be eligible to become a member in the
Association.
``(2) Ineligibility for suspension or revocation of
license.--Notwithstanding paragraph (1), a State-licensed
insurance producer shall not be eligible to become a member if
a State insurance regulator has suspended or revoked such
producer's license in that State during the 3-year period
preceding the date on which such producer applies for
membership.
``(3) Resumption of eligibility.--Paragraph (2) shall cease
to apply to any insurance producer if--
``(A) the State insurance regulator renews the
license of such producer in the State in which the
license was suspended or revoked; or
``(B) the suspension or revocation is subsequently
overturned.
``(4) Criminal background check required.--
``(A) In general.--A State-licensed insurance
producer shall not be eligible to become a member
unless the producer has submitted to a national
criminal background record check.
``(B) Criminal background check ordered by home
state.--Any insurance producer licensed in a State
that, as a condition for such licensure, requires the
submission of identification information to the Federal
Bureau of Investigation for a national criminal
background record check shall be deemed to have
submitted to a national criminal background record
check for purposes of subparagraph (A).
``(C) Criminal history check ordered by
association.--
``(i) In general.--The Association may
submit identification information obtained from
any State-licensed insurance producer licensed
in a State that has not submitted to a national
criminal background record check, and a request
for a national criminal background record check
of such producer, to the Federal Bureau of
Investigation.
``(ii) Bylaws or rules.--The board of
directors of the Association shall prescribe
bylaws or rules for obtaining and utilizing
identification information and criminal
background record information, including the
establishment of fees required to perform a
criminal background record check.
``(D) Attorney general authorization.--Upon
receiving a request from the Association, the Attorney
General shall--
``(i) search the records of the Criminal
Justice Information Services Division of the
Federal Bureau of Investigation, and any other
similar database over which the Attorney
General has authority and deems appropriate,
for any criminal background records (including
wanted persons information) corresponding to
the identification information provided under
subparagraph (F); and
``(ii) provide any relevant information
contained in such records that pertain to the
request directly to the Association.
``(E) Relevant information defined.--For purposes
of subparagraph (D)(ii), the term `relevant
information' means any of the following records:
``(i) All felony convictions.
``(ii) All misdemeanor convictions
involving--
``(I) violation of a law involving
financial activities;
``(II) dishonesty or breach of
trust, within the meaning of section
1033 of title 18, United States Code,
including taking, withholding,
misappropriating, or converting money
or property;
``(III) failure to comply with
child support obligations;
``(IV) failure to pay taxes; and
``(V) domestic violence, child
abuse, burglary of a dwelling, or a
criminal offense that has as an element
the use or attempted use of physical
force, or threat of great bodily harm,
or the use, attempted use, or
threatened use of a deadly weapon,
against an individual, including
committing or attempting to commit
murder, manslaughter, kidnapping,
aggravated assault, forcible sex
offenses, robbery, arson, extortion,
and extortionate extension of credit.
``(F) Form of request.--A request under
subparagraph (C) shall include a copy of any necessary
identification information required by the Attorney
General concerning the person about whom the record is
requested and a statement signed by the person
acknowledging that the Association may request the
search.
``(G) Limitation on permissible uses of
information.--Information obtained under this section
may--
``(i) be used only for regulatory or law
enforcement purposes or for purposes of
determining compliance with membership criteria
established by the Association;
``(ii) be disclosed only to the
Association, State insurance regulators, or
Federal or State law enforcement agencies; and
``(iii) be disclosed only if the recipient
agrees to--
``(I) maintain the confidentiality
of such information; and
``(II) limit the use of such
information to the purposes described
in clause (i).
``(H) Penalty for improper use.--Whoever uses any
information obtained under this section knowingly and
willfully for an unauthorized purpose shall be fined
under title 18, United States Code, imprisoned for not
more than 2 years, or both.
``(I) Reliance on information.--Neither the
Association nor any of its directors, officers, or
employees who reasonably rely on information provided
under this section shall be liable in any action for
using information as permitted under this section in
good faith.
``(J) Clarification of section 1033.--
``(i) In general.--With respect to any
action brought under section 1033(e)(1)(B) of
title 18, United States Code, no person engaged
in the business of conducting financial
activities shall be subject to any penalty
resulting from such section if the individual
whom the person permitted to engage in the
business of insurance is a member of the
Association or is licensed, or approved (as
part of an application or otherwise), by a
State insurance regulator that performs
criminal background checks under this section,
unless such person knows that the individual is
in violation of section 1033(e)(1)(A) of such
title.
``(ii) Financial activities defined.--For
purposes of this subparagraph, the term
`financial activities'--
``(I) means banking activities
(including the ownership of a bank),
securities activities, insurance
activities, or commodities activities;
and
``(II) includes all activities that
are financial in nature or are
incidental to a financial activity (as
defined under section 4(k) of the Bank
Holding Company Act of 1956).
``(K) Fees.--The Attorney General may charge a
reasonable fee for the provision of information under
this paragraph.
``(L) Rule of construction.--No provision of this
paragraph shall be construed as--
``(i) requiring a State insurance regulator
to perform criminal background checks under
this section; or
``(ii) superseding or otherwise limiting
any other authority that allows access to
criminal background records.
``(M) Regulations.--The Attorney General may
prescribe regulations to carry out this paragraph.
``(N) Ineligibility for membership.--The
Association may deny membership to any State-licensed
insurance producer on the basis of criminal history
information obtained pursuant to subparagraph (D).
``(b) Authority To Establish Membership Criteria.--The Association
may establish membership criteria that--
``(1) bear a reasonable relationship to the purposes for
which the Association was established; and
``(2) do not unfairly limit the access of smaller agencies
to the Association membership, including imposing
discriminatory membership fees on smaller insurance producers.
``(c) Establishment of Classes and Categories of Membership.--
``(1) Classes of membership.--The Association may establish
separate classes of membership, with separate criteria, if the
Association reasonably determines that performance of different
duties requires different levels of education, training,
experience, or other qualifications.
``(2) Categories.--
``(A) Separate categories for producers
permitted.--The Association may establish separate
categories of membership for producers and for other
persons within each class, based on the types of
licensing categories that exist under State laws.
``(B) Separate treatment for depository
institutions prohibited.--No special categories of
membership, and no distinct membership criteria, shall
be established for members which are depository
institutions or for employees, agents, or affiliates of
depository institutions.
``(d) Membership Criteria.--
``(1) In general.--The Association may establish criteria
for membership which shall include standards for personal
qualifications, education, training, and experience.
``(2) Qualifications.--In establishing criteria under
paragraph (1), the Association shall consider the NAIC Producer
Licensing Model Act and the highest levels of insurance
producer qualifications established under the licensing laws of
the States.
``(3) Assistance from states.--
``(A) In general.--The Association may request a
State to provide assistance in investigating and
evaluating a prospective member's eligibility for
membership in the Association.
``(B) Rule of construction.--Subparagraph (A) shall
not be construed as requiring or authorizing any State
to adopt new or additional requirements concerning the
licensing or evaluation of insurance producers.
``(4) Denial of membership.--The Association may deny
membership to any State-licensed insurance producer for failure
to meet the membership criteria established by the Association.
``(e) Effect of Membership.--
``(1) Authority of association members.--Membership in the
Association shall--
``(A) authorize an insurance producer to sell,
solicit, negotiate, effect, procure, deliver, renew,
continue, or bind insurance in any State for which the
member pays the licensing fee set by such State for any
line or lines of insurance specified in such producer's
home State license, and exercise all such incidental
powers, as shall be necessary to carry out such
activities, including claims adjustments and
settlement, risk management, employee benefits advice,
retirement planning, and any other insurance-related
consulting activities;
``(B) be the equivalent of a nonresident insurance
producer license issued in any state where the member
pays the licensing fee; and
``(C) subject an insurance producer to all laws,
regulations, provisions or other action of any State
concerning revocation or suspension of a member's
ability to engage in any activity within the scope of
authority granted under this subsection and to all
state laws, regulations, provisions and actions
preserved under paragraph (4).
``(2) Duplicative licenses.--No State, other than the
member's home State, may require an individual member to obtain
a business entity license or membership in order to engage in
any activity within the scope of authority granted in paragraph
(1) or in order for the member or any employer, employee, or
affiliate of the member to receive compensation for the
member's performance of any such activity.
``(3) Agent for remitting fees.--The Association shall act
as any member's agent for purposes of remitting licensing fees
to any State pursuant to paragraph (1).
``(4) Preservation of state consumer protection and market
conduct regulation.--No provision of this section shall be
construed as altering or affecting the continuing effectiveness
of any law, regulation, provision, or other action of any State
which purports to regulate market conduct or unfair trade
practices or establish consumer protections to the extent that
such law, regulation, provision, or other action is not
inconsistent with the provisions of this subtitle, and then
only to the extent of such inconsistency.
``(f) Biennial Renewal.--Membership in the Association shall be
renewed on a biennial basis.
``(g) Continuing Education.--
``(1) In general.--The Association shall establish, as a
condition of membership, continuing education requirements
which shall be comparable to the continuing education
requirements under the licensing laws of a majority of the
States.
``(2) State continuing education requirements.--A member
may not be required to satisfy continuing education
requirements imposed under the laws, regulations, provisions,
or actions of any State other than such member's home State.
``(3) Reciprocity.--The Association shall not require a
member to satisfy continuing education requirements that are
equivalent to any continuing education requirements of the
member's home State that have been satisfied by the member
during the applicable licensing period.
``(4) Limitation on association.--The Association shall not
directly or indirectly offer any continuing education courses
for insurance producers.
``(h) Probation, Suspension and Revocation.--The Association may
place an insurance producer that is a member of the Association on
probation or suspend or revoke such producer's membership in the
Association, as the Association determines to be appropriate, if--
``(1) the producer fails to meet the applicable membership
criteria of the Association; or
``(2) the producer has been subject to disciplinary action
pursuant to a final adjudicatory proceeding under the
jurisdiction of a State insurance regulator.
``(i) Office of Consumer Complaints.--
``(1) In general.--The Association shall establish an
office of consumer complaints that shall--
``(A) receive and, when appropriate, investigate
complaints from both consumers and State insurance
regulators related to members of the Association;
``(B) maintain records of all complaints received
in accordance with subparagraph (A) and make such
records available to the National Association of
Insurance Commissioners (hereinafter in this subtitle
referred to as the `NAIC') and to each State insurance
regulator for the State of residence of the consumer
who filed the complaint; and
``(C) refer, when appropriate, any such complaint
to any appropriate State insurance regulator.
``(2) Telephone and other access.--The office of consumer
complaints shall maintain a toll-free telephone number for the
purpose of this subsection and, as practicable, other
alternative means of communication with consumers, such as an
Internet web page.

``SEC. 324. BOARD OF DIRECTORS.

``(a) Establishment.--There is established the board of directors
of the Association (hereafter in this subtitle referred to as the
`Board') for the purpose of governing and supervising the activities of
the Association and the members of the Association.
``(b) Powers.--
``(1) In general.--The Board shall have such powers and
authority as may be specified in the bylaws of the Association.
``(2) Quorum required.--All decisions of the Board shall
require an affirmative vote of a simple majority of Board
members.
``(c) Composition.--
``(1) In general.--The Board shall be composed of 11
members, of whom--
``(A) 6 shall be State insurance commissioners
appointed in the manner provided in paragraph (2), and
``(B) 5 shall be insurance industry representatives
appointed in the manner provided in paragraph (3).
``(2) Members appointed by the naic.--
``(A) In general.--The NAIC shall appoint 1 member
of the Board from among State insurance commissioners
in each of the following 3 categories of States:
``(i) The 18 States with the smallest total
direct written premiums from all insurance
policies written in such States.
``(ii) The 18 States with the largest total
direct written premiums from all insurance
policies written in such States.
``(iii) The States that are not among the
States described in clauses (i) and (ii).
``(B) At-large members.--The NAIC shall appoint 3
Board members pursuant to criteria established by the
NAIC's membership.
``(3) Members appointed by insurance trade associations.--
``(A) Insurance producer representatives.--3 of the
5 members who are insurance industry representatives
shall be appointed as follows by the following trade
associations or their successor organizations:
``(i) 1 member appointed by the Council of
Insurance Agents and Brokers from among
representatives of such association.
``(ii) 1 member appointed by the
Independent Insurance Agents and Brokers of
America from among representatives of such
association.
``(iii) 1 member appointed by the National
Association of Insurance and Financial Advisors
from among representatives of such association.
``(B) Property and casualty insurer
representative.--1 of the 5 members who are insurance
industry representatives shall be appointed by the
American Insurance Association, the National
Association of Mutual Insurance Companies, and the
Property and Casualty Insurers Association of America
from among representatives of each such association, on
a rotating basis.
``(C) Life and health insurer representative.--1 of
the 5 members who are insurance industry
representatives shall be appointed by the American
Council of Life Insurers and the Association of Health
Insurance Plans from among representatives of each such
association, on a rotating basis.
``(4) Alternate appointment.--
``(A) In general.--If the NAIC or a nominating
group of insurance trade associations fails to make
appointments to the Board as required under paragraph
(2) or (3), the President shall appoint such members of
the Association's Board from lists of candidates
provided by the NAIC, in the case of a member described
in paragraph (2) or the nominating group of insurance
trade associations pursuant to the relevant
subparagraph of paragraph (3), in the case of a member
described in any such subparagraph.
``(B) Procedures for obtaining naic appointment
recommendations.--
``(i) Presidential appointment from list.--
If the NAIC fails to appoint members of the
Board as provided under subparagraph (A) or (B)
of paragraph (2) within 60 days after the date
of the enactment of the National Association of
Registered Agents and Brokers Reform Act of
2008, the President shall, with the advice and
consent of the Senate, appoint 6 members to the
Board who are current State insurance
commissioners in accordance with the
requirements of subparagraphs (A) and (B) of
paragraph (2) from a list of candidates
recommended to the President by the NAIC.
``(ii) Presidential appointment without a
list.--If the NAIC fails to provide a list
within 90 days after the date of the enactment
of the National Association of Registered
Agents and Brokers Reform Act of 2008, or if
any list that is provided does not include at
least 10 recommended candidates or comply with
the requirements of paragraph (2), the
President shall, with the advice and consent of
the Senate, appoint 6 members to the Board
without considering the views of the NAIC, in
accordance with requirements of paragraph (2).
``(C) Procedures for obtaining insurance trade
association group appointment recommendations.--
``(i) Presidential appointment from list.--
If any group of nominating insurance trade
associations identified under subparagraph (A),
(B), or (C) of paragraph (3) fails to appoint
members of the Board as provided under such
subparagraph within 60 days after the date of
the enactment of the National Association of
Registered Agents and Brokers Reform Act of
2008, the President shall, with the advice and
consent of the Senate, make the requisite
appointments pursuant to each such subparagraph
from a list of candidates recommended to the
President by such group.
``(ii) Presidential appointment without a
list.--If the nominating group of insurance
trade associations identified under
subparagraph (A), (B), or (C) of paragraph (3)
fails to provide a list within 90 days after
date of the enactment of the National
Association of Registered Agents and Brokers
Reform Act of 2008, or if any list that is
provided does not comply with the requirements
of the subparagraph, the President shall, with
the advice and consent of the Senate, make the
requisite appointments without considering the
views of such group.
``(iii) List of recommendations.--Any list
of recommended candidates provided to the
President by a nominating group of insurance
trade associations identified under
subparagraph (A), (B), or (C) of paragraph (3)
shall include--
``(I) at least 2 recommended
candidates from each association
identified under paragraph (3)(A);
``(II) at least 2 recommended
candidates, in the case of associations
identified under paragraph (3)(B); and
``(III) at least 2 recommended
candidates, in the case of associations
identified under paragraph (3)(C).
``(D) Alternate appointment of state insurance
commissioners.--If fewer than 6 State insurance
commissioners accept appointment to the Board pursuant
to subparagraph (B), the President, with the advice and
consent of the Senate, may appoint the remaining State
insurance commissioner members of the Board from among
individuals who are current or former State insurance
commissioners, to the extent that--
``(i) any former insurance commissioner
appointed by the President shall not be
employed by or have a present direct or
indirect financial interest in any insurer or
other entity in the insurance industry other
than direct or indirect ownership of, or
beneficial interest in, any insurance policy or
annuity contract written or sold by an insurer;
and
``(ii) not more than 3 members appointed to
membership on the Board under this subparagraph
belong to the same political party as the
President.
``(5) State insurance commissioner defined.--For purposes
of this subsection, the term `State insurance commissioner'
means a person who serves in the position in State government,
or on the board, commission, or other body that is the
principal insurance regulatory authority for the State.
``(d) Terms.--
``(1) In general.--The term of each Board member shall,
after the initial appointment of the members of the Board, be
for 2 years, with \1/2\ of the members to be appointed each
year and divided as evenly as possible between members
appointed under paragraphs (2) and (3) of subsection (c).
``(2) Limitation on successive terms.--Only Board members
appointed under subsections (c)(2) and (c)(3)(A) may be re-
appointed for an additional term.
``(e) Board Vacancies.--
``(1) In general.--Any vacancy on the board of directors
shall be filled as provided under subparagraph (A) or (B) of
paragraph (2), and any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of that term.
``(2) Alternate appointment.--If the NAIC or a nominating
group of trade associations fails to appoint a member to the
Board to fill a vacancy within 60 days from the date that such
vacancy occurs, the President shall, with the advice and
consent of the Senate, make the requisite appointment pursuant
to the procedures established under the applicable subparagraph
of subsection (c)(4).
``(f) Meetings.--The Board shall meet at the call of the
chairperson, or as otherwise provided by the bylaws of the Association.

``SEC. 325. OFFICERS.

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

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

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

``SEC. 327. POWERS.

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

``SEC. 328. REPORT BY ASSOCIATION.

``(a) In General.--As soon as practicable after the close of each
fiscal year, the Association shall submit to the President, the
Congress, and the NAIC a written report regarding the conduct of its
business, and the exercise of the other rights and powers granted by
this subtitle, during such fiscal year.
``(b) Financial Statements.--Each report submitted under subsection
(a) with respect to any fiscal year shall include financial statements
setting forth the financial position of the Association at the end of
such fiscal year and the results of its operations (including the
source and application of its funds) for such fiscal year.

``SEC. 329. LIABILITY OF THE ASSOCIATION AND THE DIRECTORS, OFFICERS,
AND EMPLOYEES OF THE ASSOCIATION.

``(a) In General.--The Association shall not be deemed to be an
insurer or insurance producer within the meaning of any State law,
rule, regulation, or order regulating or taxing insurers, insurance
producers, or other entities engaged in the business of insurance,
including provisions imposing premium taxes, regulating insurer
solvency or financial condition, establishing guaranty funds and
levying assessments, or requiring claims settlement practices.
``(b) Liability of the Association, Its Directors, Officers, and
Employees.--Neither the Association nor any of its directors, officers,
or employees shall have any liability to any person for any action
taken or omitted in good faith under or in connection with any matter
subject to this subtitle.

``SEC. 330. PRESIDENTIAL REVIEW.

``(a) Removal.--If the President determines and certifies to the
Speaker of the House, the House Minority Leader, the Senate Majority
Leader and the Senate Minority Leader that the Association is acting in
a manner contrary to the purposes of this subtitle or has failed to
perform its duties under this subtitle, the President may remove the
entire existing Board for the remainder of the term to which the
members of the Board were appointed and appoint, in accordance with
section 324(c)(4) with the advice and consent of the Senate, new
members to fill the vacancies on the Board for the remainder of such
terms.
``(b) Suspension of Rules or Actions.--The President, or a person
designated by the President for such purpose, may suspend the
effectiveness of any rule, or prohibit any action, of the Association
which the President or the designee determines and certifies to the
Speaker of the House, the House minority leader, the Senate majority
leader, and the Senate minority leader is contrary to the purposes of
this subtitle.

``SEC. 331. RELATIONSHIP TO STATE LAW.

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

``SEC. 332. COORDINATION WITH OTHER REGULATORS.

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

``SEC. 333. JUDICIAL REVIEW AND ENFORCEMENT.

``(a) Jurisdiction.--The appropriate United States district court
shall have exclusive jurisdiction over litigation to which the
Association is a party or any matter arising under this subtitle,
including disputes between the Association and its members that arise
under this subtitle, subject to chapter 7 of title 5, United States
Code.
``(b) Exhaustion of Remedies.--An aggrieved person shall be
required to exhaust all available administrative remedies before the
Association before it may seek judicial review of an Association
decision.
``(c) Equal Weight and Deference.--In any other proceeding
involving this subtitle, the court shall give at least equal weight and
deference to the interpretations of the Association as would be given
to any State or Federal agency with respect to any law, regulation,
interpretation, or order addressing the same issues.

``SEC. 334. DEFINITIONS.

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

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

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

Passed the House of Representatives September 17, 2008.

Attest:

LORRAINE C. MILLER,

Clerk.