15 USC 6753 - Membership

U.S Code last checked for updates: May 05, 2024

§ 6753.

Membership

(a)

Eligibility

(1)

In general

(2)

Ineligibility for suspension or revocation of license

(3)

Resumption of eligibility

Paragraph (2) shall cease to apply to any insurance producer if—

(A)

the State insurance regulator reissues or renews the license of the insurance producer in the State in which the license was suspended or revoked, or otherwise terminates or vacates the suspension or revocation; or

(B)

the suspension or revocation expires or is subsequently overturned by a court of competent jurisdiction.

(4)

Criminal history record check required

(A)

In general

(B)

Criminal history record check requested by home State

(C)

Criminal history record check requested by Association

(i)

In general

(ii)

Procedures

(D)

Form of request

(E)

Provision of information by Attorney General

(F)

Limitation on permissible uses of information

Any information provided to the Association under subparagraph (E) may only—

(i)

be used for purposes of determining compliance with membership criteria established by the Association;

(ii)

be disclosed to State insurance regulators, or Federal or State law enforcement agencies, in conformance with applicable law; or

(iii)

be disclosed, upon request, to the insurance producer to whom the criminal history record information relates.

(G)

Penalty for improper use or disclosure

(H)

Reliance on information

(I)

Fees

(J)

Rule of construction

Nothing in this paragraph shall be construed as—

(i)

requiring a State insurance regulator to perform criminal history record checks under this section; or

(ii)

limiting any other authority that allows access to criminal history records.

(K)

Regulations

The Attorney 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 an insurance producer to contest the accuracy of information regarding the insurance producer provided under subparagraph (E).

(L)

Ineligibility for membership

(i)

In general

(ii)

Rights of applicants denied membership

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—

(I)

obtain a copy of all criminal history record information provided to the Association under subparagraph (E) with respect to the insurance producer; and

(II)

challenge the denial of membership based on the accuracy and completeness of the information.

(M)

Definition

(b)

Authority to establish membership criteria

(c)

Establishment of classes and categories of membership

(1)

Classes of membership

(2)

Business entities

(3)

Categories

(A)

Separate categories for insurance producers permitted

(B)

Separate treatment for depository institutions prohibited

(d)

Membership criteria

(1)

In general

(2)

Qualifications

(3)

Assistance from States

(A)

In general

(B)

Authorization of information sharing

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—

(i)

the State to share information with the Association; and

(ii)

the Association to receive the information.

(C)

Rule of construction

(4)

Denial of membership

(e)

Effect of membership

(1)

Authority of Association members

Membership in the Association shall—

(A)

authorize an insurance producer to sell, solicit, or negotiate insurance in any State for which the member pays the licensing fee set by the State for any line or lines of insurance specified in the home State license of the 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;

(B)

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

(C)

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).

(2)

Violent Crime Control and Law Enforcement Act of 1994

(3)

Agent for remitting fees

(4)

Notification of action

(A)

In general

(B)

Ongoing disclosures required

(5)

Preservation of consumer protection and market conduct regulation

(A)

In general

(B)

Preserved regulations

The laws, regulations, provisions, or other actions of any State referred to in subparagraph (A) include laws, regulations, provisions, or other actions that—

(i)

regulate market conduct, insurance producer conduct, or unfair trade practices;

(ii)

establish consumer protections; or

(iii)

require insurance producers to be appointed by a licensed or authorized insurer.

(f)

Biennial renewal

(g)

Continuing education

(1)

In general

(2)

State continuing education requirements

(3)

Reciprocity

(4)

Limitation on the Association

(h)

Probation, suspension and revocation

(1)

Disciplinary action

The Association may place an insurance producer that is a member of the Association on probation or suspend or revoke the membership of the insurance producer in the Association, or assess monetary fines or penalties, as the Association determines to be appropriate, if—

(A)

the insurance producer fails to meet the applicable membership criteria or other standards established by the Association;

(B)

the insurance producer has been subject to disciplinary action pursuant to a final adjudicatory proceeding under the jurisdiction of a State insurance regulator;

(C)

an insurance license held by the insurance producer has been suspended or revoked by a State insurance regulator; or

(D)

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.

(2)

Violations of Association standards

(3)

Reporting

(i)

Consumer complaints

(1)

In general

The Association shall—

(A)

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

(B)

make any related records and information available to each State insurance regulator to whom the complaint is forwarded.

(2)

Telephone and other access

(3)

Final disposition of investigation

(j)

Information sharing

The Association may—

(1)

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 1

 So in original. Probably should be followed by “in”.

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;

(2)

limit the sharing of information as required under this subchapter 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 subchapter;

(3)

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

(4)

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.

(k)

Effective date

The provisions of this section shall take effect on the later of—

(1)

the expiration of the 2-year period beginning on January 12, 2015; and

(2)

the date of incorporation of the Association.

(Pub. L. 106–102, title III, § 323, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 13.)

cite as: 15 USC 6753