H. R. 1112
To reform the National Association of Registered Agents and Brokers,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 16, 2011
Mr. NEUGEBAUER (for himself, Mr. DAVID SCOTT of Georgia, Mr. BACHUS, Mrs.
BIGGERT, Mrs. CAPITO, Mr. GARRETT, Mr. DAVIS of Kentucky, Mr. AKIN, Mrs. BACHMANN,
Mr. BOREN, Mr. BOSWELL, Mr. BRALEY of Iowa, Mr. CANSECO, Mr. CAPUANO, Mr.
CARSON of Indiana, Mr. CHANDLER, Mr. CLAY, Mr. DOLD, Mr. DONNELLY of Indiana,
Ms. FOXX, Mr. GERLACH, Mr. AL GREEN of Texas, Ms. HAYWORTH, Mr. HOLDEN, Mr.
HUIZENGA of Michigan, Mr. JONES, Mr. KINZINGER of Illinois, Mr. LANCE, Mr.
LARSON of Connecticut, Mr. LOEBSACK, Mr. LUETKEMEYER, Mrs. MALONEY, Mr. MANZULLO,
Mr. MARCHANT, Mr. MCHENRY, Mr. MILLER of North Carolina, Ms. MOORE, Mr. MURPHY
of Connecticut, Mrs. MYRICK, Mr. PERLMUTTER, Mr. POSEY, Mr. RENACCI, Mr. ROSS
of Arkansas, Mr. SCHRADER, Mr. STIVERS, Mr. TERRY, Mr. WALSH of Illinois,
and Ms. WASSERMAN SCHULTZ) introduced the following bill; which was referred
to the Committee on Financial Services
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 2011'.
SEC. 2. REESTABLISHMENT OF THE NATIONAL ASSOCIATION OF REGISTERED AGENTS
(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;
`(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.
`(1) IN GENERAL- Any insurance producer licensed in its home State shall,
subject to paragraphs (2) and (4), be eligible to become a member of the
`(2) INELIGIBILITY FOR SUSPENSION OR REVOCATION OF LICENSE- Subject to paragraph
(3), an insurance producer is not eligible to become a member of the Association
if a State insurance regulator has suspended or revoked such producer's
license in that State during the 3-year period preceding the date on which
such producer applies for membership.
`(3) RESUMPTION OF ELIGIBILITY- Paragraph (2) shall cease to apply to any
insurance producer if--
`(A) the State insurance regulator reissues or renews the license of such
producer in the State in which the license was suspended or revoked; or
`(B) the suspension or revocation is subsequently overturned.
`(4) CRIMINAL BACKGROUND RECORD CHECK REQUIRED-
`(A) IN GENERAL- An insurance producer shall not be eligible to become
a member of the Association unless the producer has undergone a national
criminal background record check that complies with regulations prescribed
by the Attorney General under subparagraph (L).
`(B) CRIMINAL BACKGROUND RECORD CHECK REQUESTED BY HOME STATE- An insurance
producer who is licensed in a State and who has undergone a national criminal
background record check in compliance with such requirements as a condition
for such licensure shall be deemed to have undergone a national criminal
background record check for purposes of subparagraph (A).
`(C) CRIMINAL BACKGROUND RECORD CHECK REQUESTED BY ASSOCIATION-
`(i) IN GENERAL- The Association shall, upon request by an insurance
producer licensed in a State, submit identification information obtained
from such producer, and a request for a national criminal background
record check of such producer, to the Federal Bureau of Investigation.
`(ii) BYLAWS OR RULES- The board of directors of the Association shall
prescribe bylaws or rules for obtaining and utilizing identification
information and criminal history record information, including the establishment
of reasonable fees required to perform a criminal background record
check and appropriate safeguards for maintaining confidentiality and
security of the information.
`(D) FORM OF REQUEST- A submission under subparagraph (C)(i) shall include
such identification information as required by the Attorney General concerning
the person about whom the record is requested and a statement signed by
the person authorizing the Association to obtain the information.
`(E) PROVISION OF INFORMATION BY ATTORNEY GENERAL- Upon receiving a submission
under subparagraph (C)(ii) from the Association, the Attorney General
shall search all records of the Criminal Justice Information Services
Division of the Federal Bureau of Investigation that the Attorney General
deems appropriate for criminal history records corresponding to the identification
information provided under subparagraph (D) and provide all information
contained in such records that pertains to the request to the Association.
`(F) LIMITATION ON PERMISSIBLE USES OF INFORMATION- The Association may
use information provided under subparagraph (E) only--
`(i) for purposes of determining compliance with membership criteria
established by the Association; and/or
`(ii) to disclose to State insurance regulators, or Federal or State
law enforcement agencies, in conformance with applicable law.
`(G) APPLICANT ACCESS TO CRIMINAL HISTORY RECORDS- Notwithstanding subparagraph
(F), a producer shall have the right to obtain from the Association a
copy of any criminal history record information concerning the producer
that is provided to the Association under subparagraph (E).
`(H) PENALTY FOR IMPROPER USE OR DISCLOSURE- Whoever knowingly uses any
information provided under subparagraph (E) for a purpose not authorized
in subparagraph (F), or discloses any such information to anyone not authorized
to receive it, shall be fined under title 18, United States Code, imprisoned
for not more than 2 years, or both.
`(I) RELIANCE ON INFORMATION- Neither the Association nor any of its directors,
officers, or employees shall be liable in any action for using information
provided under subparagraph (E) as permitted under subparagraph (F) in
good faith and in reasonable reliance on its accuracy.
`(J) FEES- The Attorney General may charge a reasonable fee to defray
the expense of conducting the search and providing the information under
subparagraph (E), and any such fee shall be collected and remitted by
`(K) RULE OF CONSTRUCTION- Nothing in this paragraph shall be construed
`(i) requiring a State insurance regulator to perform criminal background
checks under this section; or
`(ii) limiting any other authority that allows access to criminal background
`(L) REGULATIONS- The Attorney General shall prescribe regulations to
carry out this paragraph, which shall include--
`(i) appropriate protections for ensuring the confidentiality of information
provided under subparagraph (E); and
`(ii) procedures providing a reasonable opportunity for a producer to
contest the accuracy of information regarding the producer provided
under subparagraph (E).
`(M) INELIGIBILITY FOR MEMBERSHIP-
`(i) IN GENERAL- The Association may, under reasonably consistently
applied standards, deny membership to an insurance producer on the basis
of criminal history information provided under subparagraph (E).
`(ii) RIGHTS OF APPLICANTS DENIED MEMBERSHIP- The Association shall
notify any producer who is denied membership on the basis of criminal
history record information provided under subparagraph (E) of the right
of the producer to--
`(I) obtain a copy of all criminal history record information provided
to the Association under subparagraph (E) with respect to the producer;
`(II) challenge the accuracy and completeness of the information.
`(b) Authority To Establish Membership Criteria- The Association may establish
membership criteria that--
`(1) bear a reasonable relationship to the purposes for which the Association
was established; and
`(2) do not unfairly limit the access of smaller agencies to the Association
membership, including imposing discriminatory membership fees on smaller
`(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.
`(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,
`(2) QUALIFICATIONS- In establishing criteria under paragraph (1), the Association
shall consider the NAIC Producer Licensing Model Act and the highest levels
of insurance producer qualifications established under the licensing laws
of the States.
`(3) ASSISTANCE FROM STATES-
`(A) IN GENERAL- The Association may request a State to provide assistance
in investigating and evaluating a prospective member's eligibility for
membership in the Association.
`(B) RULE OF CONSTRUCTION- Subparagraph (A) shall not be construed as
requiring or authorizing any State to adopt new or additional requirements
concerning the licensing or evaluation of insurance producers.
`(4) DENIAL OF MEMBERSHIP- The Association may, based on reasonably consistently
applied standards, deny membership to any State-licensed insurance producer
for failure to meet the membership criteria established by the Association.
`(e) Effect of Membership-
`(1) AUTHORITY OF ASSOCIATION MEMBERS- Membership in the Association shall--
`(A) authorize an insurance producer to sell, solicit, negotiate, effect,
procure, deliver, renew, continue, or bind insurance in any State for
which the member pays the licensing fee set by such State for any line
or lines of insurance specified in such producer's home State license,
and exercise all such incidental powers, as shall be necessary to carry
out such activities, including claims adjustments and settlement, risk
management, employee benefits advice, retirement planning, and any other
insurance-related consulting activities;
`(B) be the equivalent of a nonresident insurance producer license issued
in any State where the member pays the licensing fee; and
`(C) subject an insurance producer to all laws, regulations, provisions
or other action of any State concerning revocation or suspension of a
member's ability to engage in any activity within the scope of authority
granted under this subsection and to all State laws, regulations, provisions
and actions preserved under paragraph (5).
`(2) DUPLICATIVE LICENSES- No State, other than the member's home State,
may require an individual member to obtain a business entity license or
membership in order to engage in any activity within the scope of authority
granted in paragraph (1) or in order for the member or any employer, employee,
or affiliate of the member to receive compensation for the member's performance
of any such activity.
`(3) AGENT FOR REMITTING FEES- The Association shall act as any member's
agent for purposes of remitting licensing fees to any State pursuant to
`(4) REGULATOR NOTIFICATION- The Association shall notify the National Association
of Insurance Commissioners (hereinafter in this subtitle referred to as
the `NAIC') or its designee when a producer becomes a member and identify,
on an ongoing basis, the States in which the member is authorized to operate.
`(5) PRESERVATION OF STATE CONSUMER PROTECTION AND MARKET CONDUCT REGULATION-
No provision of this section shall be construed as altering or affecting
the continuing effectiveness of any law, regulation, provision, or other
action of any State which purports to regulate market conduct or unfair
trade practices or establish consumer protections to the extent that such
law, regulation, provision, or other action is not inconsistent with the
provisions of this subtitle, and then only to the extent of such inconsistency.
`(f) Biennial Renewal- Membership in the Association shall be renewed on a
`(g) Continuing Education-
`(1) IN GENERAL- The Association shall establish, as a condition of membership,
continuing education requirements which shall be comparable to the continuing
education requirements under the licensing laws of a majority of the States.
`(2) STATE CONTINUING EDUCATION REQUIREMENTS- A member may not be required
to satisfy continuing education requirements imposed under the laws, regulations,
provisions, or actions of any State other than such member's home State.
`(3) RECIPROCITY- The Association shall not require a member to satisfy
continuing education requirements that are equivalent to any continuing
education requirements of the member's home State that have been satisfied
by the member during the applicable licensing period.
`(4) LIMITATION ON ASSOCIATION- The Association shall not directly or indirectly
offer any continuing education courses for insurance producers.
`(h) Probation, Suspension and Revocation-
`(1) DISCIPLINARY ACTION- The Association may place an insurance producer
that is a member of the Association on probation or suspend or revoke such
producer's membership in the Association, as the Association determines
to be appropriate, if--
`(A) the producer fails to meet the applicable membership criteria of
the Association; or
`(B) the producer has been subject to disciplinary action pursuant to
a final adjudicatory proceeding under the jurisdiction of a State insurance
`(2) REPORTING TO STATE REGULATORS- The Association shall notify the NAIC
or its designee when a producer's membership has been suspended, revoked,
and otherwise terminated.
`(i) Consumer Complaints-
`(1) IN GENERAL- The Association shall--
`(A) receive and, when appropriate, investigate complaints from both consumers
and State insurance regulators related to members of the Association;
`(B) refer any proper complaint received in accordance with subparagraph
(A) and make any related records and information available to the NAIC
or its designee and to each State insurance regulator for the State of
residence of the consumer who filed the complaint; and
`(C) refer, when appropriate, any such complaint to any additional appropriate
State insurance regulator.
`(2) TELEPHONE AND OTHER ACCESS- The Association shall maintain a toll-free
telephone number for the purpose of this subsection and, as practicable,
other alternative means of communication with consumers, such as an Internet
`SEC. 324. BOARD OF DIRECTORS.
`(a) Establishment- There is established the board of directors of the Association
(hereafter in this subtitle referred to as the `Board'), which shall have
authority to govern and supervise all activities of the Association.
`(b) Powers- The Board shall have such of the Association's powers and authority
as may be specified in the bylaws of the Association.
`(1) IN GENERAL- The Board shall consist of 11 members who shall be appointed
by the President, by and with the advice and consent of the Senate, of whom--
`(A) 6 shall be State insurance commissioners appointed in the manner
provided in paragraph (2);
`(B) 2 shall be representatives of property and casualty insurance producers;
`(C) 1 shall be a representative of life or health insurance producers;
`(D) 1 shall be a representative of property and casualty insurers; and
`(E) 1 shall be a representative of life or health insurers.
`(2) STATE INSURANCE REGULATOR REPRESENTATIVES-
`(A) Before making any appointments pursuant to subparagraph (A) of paragraph
(1), the President shall request a list of recommended candidates from
the NAIC, which shall not be binding on the President. If the NAIC fails
to submit a list of recommendations within 15 days of the request, the
President may make the requisite appointments without considering the
views of the NAIC.
`(B) Not more than 3 members appointed to membership on the Board pursuant
to subparagraph (A) of paragraph (1) shall belong to the same political
`(C) If fewer than 6 State insurance commissioners accept appointment
to the Board, the President may appoint the remaining State insurance
commissioner members of the Board from among individuals who are former
State insurance commissioners, provided that any former insurance commissioner
so appointed shall not be employed by or have a present direct or indirect
financial interest in any insurer or other entity in the insurance industry
other than direct or indirect ownership of, or beneficial interest in,
an insurance policy or annuity contract written or sold by an insurer.
`(3) PRIVATE SECTOR REPRESENTATIVES- In making any appointments pursuant
to subparagraphs (B) through (E) of paragraph (1), the President may seek
recommendations for candidates from national trade associations representing
the category of individuals described, which shall not be binding on the
`(4) STATE INSURANCE COMMISSIONER DEFINED- For purposes of this subsection,
the term `State insurance commissioner' means a person who serves in the
position in State government, or on the board, commission, or other body
that is the principal insurance regulatory authority for the State.
`(1) IN GENERAL- The term of each Board member shall be for 2 years, except
`(i) 3 of the State insurance commissioner members of the Board initially
appointed under subparagraph (A) of paragraph (1);
`(ii) 1 of the property and casualty insurance producer members of the
Board initially appointed under subparagraph (B) of paragraph (1); and
`(iii) 1 of the insurer representative members of the Board initially
appointed under subparagraphs (D) and (E) of paragraph (1),
shall be 1 year, as designated by the President at the time of the nomination
of such members;
`(B) a member of the Board may continue to serve after the expiration
of the term to which such member was appointed until a successor is qualified;
`(C) any member of the Board appointed to fill a vacancy occurring before
the expiration of the term for which the member's predecessor was appointed
shall be appointed only for the remainder of that term.
`(2) SUCCESSIVE TERMS- Board members may be reappointed to successive terms.
`(1) IN GENERAL- The Board shall meet at the call of the chairperson, as
requested in writing to the chairperson by at least four members of the
Board, or as otherwise provided by the bylaws of the Association.
`(2) QUORUM REQUIRED- A majority of directors shall constitute a quorum.
`(3) VOTING- Decisions of the Board shall require the approval of a majority
of all directors present at a meeting, a quorum being present.
`SEC. 325. OFFICERS.
`(a) Positions- The officers of the Association shall consist of a chairperson
and a vice chairperson of the Board, an executive director, secretary, and
treasurer of the Association, and such other officers and assistant officers
as may be deemed necessary.
`(b) Manner of Selection- Each officer of the Board and the Association shall
be elected or appointed at such time, in such manner, and for such terms as
may be prescribed in the bylaws of the Association.
`SEC. 326. BYLAWS, RULES, AND DISCIPLINARY ACTION.
`(a) Adoption and Amendment of Bylaws-
`(1) COPY REQUIRED TO BE FILED- The board of directors of the Association
shall submit to the President and the NAIC any proposed bylaw or rules of
the Association or any proposed amendment to the bylaws or rules, accompanied
by a concise general statement of the basis and purpose of such proposal.
`(2) EFFECTIVE DATE- Any proposed bylaw or rule or proposed amendment to
the bylaws or rules shall take effect, after notice published in the Federal
Register and opportunity for comment, upon such date as the Association
may designate, unless suspended under subsection (c) of section 330.
`(b) Disciplinary Action by the Association-
`(1) SPECIFICATION OF CHARGES- In any proceeding to determine whether membership
shall be denied, suspended, revoked, or not renewed (hereafter in this section
referred to as a `disciplinary action') or to determine whether a member
of the Association should be placed on probation, the Association shall
bring specific charges, notify such member of such charges, give the member
an opportunity to defend against the charges, and keep a record.
`(2) SUPPORTING STATEMENT- A determination to take disciplinary action shall
be supported by a statement setting forth--
`(A) any act or practice in which such member has been found to have been
`(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
`(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.
`(7) To secure funding from board member organizations and other industry
associations for such amounts that the Association determines to be necessary
and appropriate to organize and begin operations of the Association, which
shall be treated as loans to be repaid by the Association with interest
at market rate.
`SEC. 328. REPORT BY ASSOCIATION.
`(a) In General- As soon as practicable after the close of each fiscal year,
the Association shall submit to the President and the NAIC a written report
regarding the conduct of its business, and the exercise of the other rights
and powers granted by this subtitle, during such fiscal year.
`(b) Financial Statements- Each report submitted under subsection (a) with
respect to any fiscal year shall include financial statements setting forth
the financial position of the Association at the end of such fiscal year and
the results of its operations (including the source and application of its
funds) for such fiscal year.
`SEC. 329. LIABILITY OF THE ASSOCIATION AND THE DIRECTORS, OFFICERS, AND
EMPLOYEES OF THE ASSOCIATION.
`(a) In General- The Association shall not be deemed to be an insurer or insurance
producer within the meaning of any State law, rule, regulation, or order regulating
or taxing insurers, insurance producers, or other entities engaged in the
business of insurance, including provisions imposing premium taxes, regulating
insurer solvency or financial condition, establishing guaranty funds and levying
assessments, or requiring claims settlement practices.
`(b) Liability of Directors, Officers, and Employees- No director, officer,
or employee of the Association shall be personally liable to any person for
any action taken or omitted in good faith in any matter within the scope of
their responsibilities in connection with the Association.
`SEC. 330. PRESIDENTIAL OVERSIGHT.
`(a) Removal of Board- If the President determines that the Association is
acting in a manner contrary to the interests of the public or the purposes
of this subtitle or has failed to perform its duties under this subtitle,
the President may remove the entire existing Board for the remainder of the
term to which the members of the Board were appointed and appoint, in accordance
with section 324 and with the advice and consent of the Senate, new members
to fill the vacancies on the Board for the remainder of such terms.
`(b) Removal of Board Member- The President may remove a member of the Board
only for neglect of duty or malfeasance in office.
`(c) Suspension of Rules or Actions- The President, or a person designated
by the President for such purpose, may suspend the effectiveness of any rule,
or prohibit any action, of the Association which the President or the designee
determines is contrary to the purposes of this subtitle.
`SEC. 331. RELATIONSHIP TO STATE LAW.
`(a) Preemption of State Laws- State laws, regulations, provisions, or other
actions purporting to regulate insurance producers shall be preempted to the
extent provided in subsection (b).
`(1) IN GENERAL- No State shall--
`(A) impede the activities of, take any action against, or apply any provision
of law or regulation arbitrarily or discriminatorily to, any insurance
producer because that insurance producer or any affiliate plans to become,
has applied to become, or is a member of the Association;
`(B) impose any requirement upon a member of the Association that it pay
fees different from those required to be paid to that State were it not
a member of the Association;
`(C) impose any continuing education requirements on nonresident insurance
`(D) impose any licensing, registration, or appointment requirements upon
any nonresident insurance producer that sells, solicits, negotiates, effects,
procures, delivers, renews, continues, or binds insurance for commercial
property and casualty risks to an insured with risks located in more than
1 State, if such nonresident insurance producer is otherwise licensed
as an insurance producer in the State where the insured maintains its
principal place of business and the contract of insurance insures risks
located in that State.
`(2) STATES OTHER THAN A HOME STATE- No State, other than a member's home
`(A) impose any licensing, integrity, personal or corporate qualifications,
education, training, experience, residency, continuing education, or bonding
requirement upon a member of the Association that is different from the
criteria for membership in the Association or renewal of such membership;
`(B) impose any requirement upon a member of the Association that it be
licensed, registered, or otherwise qualified to do business or remain
in good standing in such State, including any requirement that such insurance
producer register as a foreign company with the secretary of state or
equivalent State official; or
`(C) require that a member of the Association submit to a criminal history
record check as a condition of doing business in such State.
`SEC. 332. COORDINATION WITH OTHER REGULATORS.
`(a) Coordination With State Insurance Regulators- The Association may--
`(1) establish a central clearinghouse, or utilize the NAIC or any other
appropriate entity as a central clearinghouse, through which members of
the Association may pursuant to section 323(e) disclose their intent to
operate in 1 or more States and pay the licensing fees to the appropriate
`(2) establish a national database for the collection of regulatory information
concerning the activities of insurance producers or contract with the NAIC
or any other entity to utilize such a database.
`(b) Coordination With the Financial Industry Regulatory Authority- The Association
shall coordinate with the Financial Industry Regulatory Authority in order
to ease any administrative burdens that fall on persons that are members of
both associations, consistent with the requirements of this subtitle and the
Federal securities laws.
`SEC. 333. RIGHT OF ACTION.
`(a) Right of Action- Any person aggrieved by a decision or action of the
Association may, after reasonably exhausting available avenues for resolution
within the Association, commence a civil action in an appropriate United States
district court, and obtain all appropriate relief.
`(b) Association Interpretations- In any such action, the court shall give
appropriate weight to the Association's interpretation of its bylaws and this
`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
`(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.
`(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. 324. Board of directors.
`Sec. 326. Bylaws, rules, and disciplinary action.
`Sec. 328. Report by association.
`Sec. 329. Liability of the association and the directors, officers, and
employees of the association.
`Sec. 330. Presidential oversight.
`Sec. 331. Relationship to State law.
`Sec. 332. Coordination with other regulators.
`Sec. 333. Judicial review and enforcement.
`Sec. 334. Definitions.'.