TITLE 15 - US CODE - CHAPTER 93 - INSURANCE

TITLE 15 - US CODE - SUBCHAPTER I - STATE REGULATION OF INSURANCE

15 USC 6711 - Functional regulation of insurance

The insurance activities of any person (including a national bank exercising its power to act as agent under section 92 of title 12) shall be functionally regulated by the States, subject to section 6701 of this title.

15 USC 6712 - Insurance underwriting in national banks

(a) In general 
Except as provided in section 6713 of this title, a national bank and the subsidiaries of a national bank may not provide insurance in a State as principal except that this prohibition shall not apply to authorized products.
(b) Authorized products 
For the purposes of this section, a product is authorized if
(1) as of January 1, 1999, the Comptroller of the Currency had determined in writing that national banks may provide such product as principal, or national banks were in fact lawfully providing such product as principal;
(2) no court of relevant jurisdiction had, by final judgment, overturned a determination of the Comptroller of the Currency that national banks may provide such product as principal; and
(3) the product is not title insurance, or an annuity contract the income of which is subject to tax treatment under section 72 of title 26.
(c) Definition 
For purposes of this section, the term insurance means
(1) any product regulated as insurance as of January 1, 1999, in accordance with the relevant State insurance law, in the State in which the product is provided;
(2) any product first offered after January 1, 1999, which
(A) a State insurance regulator determines shall be regulated as insurance in the State in which the product is provided because the product insures, guarantees, or indemnifies against liability, loss of life, loss of health, or loss through damage to or destruction of property, including, but not limited to, surety bonds, life insurance, health insurance, title insurance, and property and casualty insurance (such as private passenger or commercial automobile, homeowners, mortgage, commercial multiperil, general liability, professional liability, workers compensation, fire and allied lines, farm owners multiperil, aircraft, fidelity, surety, medical malpractice, ocean marine, inland marine, and boiler and machinery insurance); and
(B) is not a product or service of a bank that is
(i) a deposit product;
(ii) a loan, discount, letter of credit, or other extension of credit;
(iii) a trust or other fiduciary service;
(iv) a qualified financial contract (as defined in or determined pursuant to section 1821 (e)(8)(D)(i) of title 12); or
(v) a financial guaranty, except that this subparagraph (B) shall not apply to a product that includes an insurance component such that if the product is offered or proposed to be offered by the bank as principal
(I) it would be treated as a life insurance contract under section 7702 of title 26; or
(II) in the event that the product is not a letter of credit or other similar extension of credit, a qualified financial contract, or a financial guaranty, it would qualify for treatment for losses incurred with respect to such product under section 832 (b)(5) of title 26, if the bank were subject to tax as an insurance company under section 831 of that title; or
(3) any annuity contract, the income on which is subject to tax treatment under section 72 of title 26.
(d) Rule of construction 
For purposes of this section, providing insurance (including reinsurance) outside the United States that insures, guarantees, or indemnifies insurance products provided in a State, or that indemnifies an insurance company with regard to insurance products provided in a State, shall be considered to be providing insurance as principal in that State.

15 USC 6713 - Title insurance activities of national banks and their affiliates

(a) General prohibition 
No national bank may engage in any activity involving the underwriting or sale of title insurance.
(b) Nondiscrimination parity exception 

(1) In general 
Notwithstanding any other provision of law (including section 6701 of this title), in the case of any State in which banks organized under the laws of such State are authorized to sell title insurance as agent, a national bank may sell title insurance as agent in such State, but only in the same manner, to the same extent, and under the same restrictions as such State banks are authorized to sell title insurance as agent in such State.
(2) Coordination with “wildcard” provision 
A State law which authorizes State banks to engage in any activities in such State in which a national bank may engage shall not be treated as a statute which authorizes State banks to sell title insurance as agent, for purposes of paragraph (1).
(c) Grandfathering with consistent regulation 

(1) In general 
Except as provided in paragraphs (2) and (3) and notwithstanding subsections (a) and (b) of this section, a national bank, and a subsidiary of a national bank, may conduct title insurance activities which such national bank or subsidiary was actively and lawfully conducting before November 12, 1999.
(2) Insurance affiliate 
In the case of a national bank which has an affiliate which provides insurance as principal and is not a subsidiary of the bank, the national bank and any subsidiary of the national bank may not engage in the underwriting of title insurance pursuant to paragraph (1).
(3) Insurance subsidiary 
In the case of a national bank which has a subsidiary which provides insurance as principal and has no affiliate other than a subsidiary which provides insurance as principal, the national bank may not directly engage in any activity involving the underwriting of title insurance.
(d) “Affiliate” and “subsidiary” defined 
For purposes of this section, the terms affiliate and subsidiary have the same meanings as in section 1841 of title 12.
(e) Rule of construction 
No provision of this Act or any other Federal law shall be construed as superseding or affecting a State law which was in effect before November 12, 1999, and which prohibits title insurance from being offered, provided, or sold in such State, or from being underwritten with respect to real property in such State, by any person whatsoever.

15 USC 6714 - Expedited and equalized dispute resolution for Federal regulators

(a) Filing in Court of Appeals 
In the case of a regulatory conflict between a State insurance regulator and a Federal regulator regarding insurance issues, including whether a State law, rule, regulation, order, or interpretation regarding any insurance sales or solicitation activity is properly treated as preempted under Federal law, the Federal or State regulator may seek expedited judicial review of such determination by the United States Court of Appeals for the circuit in which the State is located or in the United States Court of Appeals for the District of Columbia Circuit by filing a petition for review in such court.
(b) Expedited review 
The United States Court of Appeals in which a petition for review is filed in accordance with subsection (a) of this section shall complete all action on such petition, including rendering a judgment, before the end of the 60-day period beginning on the date on which such petition is filed, unless all parties to such proceeding agree to any extension of such period.
(c) Supreme Court review 
Any request for certiorari to the Supreme Court of the United States of any judgment of a United States Court of Appeals with respect to a petition for review under this section shall be filed with the Supreme Court of the United States as soon as practicable after such judgment is issued.
(d) Statute of limitation 
No petition may be filed under this section challenging an order, ruling, determination, or other action of a Federal regulator or State insurance regulator after the later of
(1) the end of the 12-month period beginning on the date on which the first public notice is made of such order, ruling, determination or other action in its final form; or
(2) the end of the 6-month period beginning on the date on which such order, ruling, determination, or other action takes effect.
(e) Standard of review 
The court shall decide a petition filed under this section based on its review on the merits of all questions presented under State and Federal law, including the nature of the product or activity and the history and purpose of its regulation under State and Federal law, without unequal deference.

15 USC 6715 - Certain State affiliation laws preempted for insurance companies and affiliates

Except as provided in section 6701 (c)(2) of this title, no State may, by law, regulation, order, interpretation, or otherwise
(1) prevent or significantly interfere with the ability of any insurer, or any affiliate of an insurer (whether such affiliate is organized as a stock company, mutual holding company, or otherwise), to become a financial holding company or to acquire control of a depository institution;
(2) limit the amount of an insurers assets that may be invested in the voting securities of a depository institution (or any company which controls such institution), except that the laws of an insurers State of domicile may limit the amount of such investment to an amount that is not less than 5 percent of the insurers admitted assets; or
(3) prevent, significantly interfere with, or have the authority to review, approve, or disapprove a plan of reorganization by which an insurer proposes to reorganize from mutual form to become a stock insurer (whether as a direct or indirect subsidiary of a mutual holding company or otherwise) unless such State is the State of domicile of the insurer.

15 USC 6716 - Interagency consultation

(a) Purpose 
It is the intention of the Congress that the Board of Governors of the Federal Reserve System, as the umbrella supervisor for financial holding companies, and the State insurance regulators, as the functional regulators of companies engaged in insurance activities, coordinate efforts to supervise companies that control both a depository institution and a company engaged in insurance activities regulated under State law. In particular, Congress believes that the Board and the State insurance regulators should share, on a confidential basis, information relevant to the supervision of companies that control both a depository institution and a company engaged in insurance activities, including information regarding the financial health of the consolidated organization and information regarding transactions and relationships between insurance companies and affiliated depository institutions. The appropriate Federal banking agencies for depository institutions should also share, on a confidential basis, information with the relevant State insurance regulators regarding transactions and relationships between depository institutions and affiliated companies engaged in insurance activities. The purpose of this section is to encourage this coordination and confidential sharing of information, and to thereby improve both the efficiency and the quality of the supervision of financial holding companies and their affiliated depository institutions and companies engaged in insurance activities.
(b) Examination results and other information 

(1) Information of the Board 
Upon the request of the appropriate insurance regulator of any State, the Board may provide any information of the Board regarding the financial condition, risk management policies, and operations of any financial holding company that controls a company that is engaged in insurance activities and is regulated by such State insurance regulator, and regarding any transaction or relationship between such an insurance company and any affiliated depository institution. The Board may provide any other information to the appropriate State insurance regulator that the Board believes is necessary or appropriate to permit the State insurance regulator to administer and enforce applicable State insurance laws.
(2) Banking agency information 
Upon the request of the appropriate insurance regulator of any State, the appropriate Federal banking agency may provide any information of the agency regarding any transaction or relationship between a depository institution supervised by such Federal banking agency and any affiliated company that is engaged in insurance activities regulated by such State insurance regulator. The appropriate Federal banking agency may provide any other information to the appropriate State insurance regulator that the agency believes is necessary or appropriate to permit the State insurance regulator to administer and enforce applicable State insurance laws.
(3) State insurance regulator information 
Upon the request of the Board or the appropriate Federal banking agency, a State insurance regulator may provide any examination or other reports, records, or other information to which such insurance regulator may have access with respect to a company which
(A) is engaged in insurance activities and regulated by such insurance regulator; and
(B) is an affiliate of a depository institution or financial holding company.
(c) Consultation 
Before making any determination relating to the initial affiliation of, or the continuing affiliation of, a depository institution or financial holding company with a company engaged in insurance activities, the appropriate Federal banking agency shall consult with the appropriate State insurance regulator of such company and take the views of such insurance regulator into account in making such determination.
(d) Effect on other authority 
Nothing in this section shall limit in any respect the authority of the appropriate Federal banking agency with respect to a depository institution or bank holding company or any affiliate thereof under any provision of law.
(e) Confidentiality and privilege 

(1) Confidentiality 
The appropriate Federal banking agency shall not provide any information or material that is entitled to confidential treatment under applicable Federal banking agency regulations, or other applicable law, to a State insurance regulator unless such regulator agrees to maintain the information or material in confidence and to take all reasonable steps to oppose any effort to secure disclosure of the information or material by the regulator. The appropriate Federal banking agency shall treat as confidential any information or material obtained from a State insurance regulator that is entitled to confidential treatment under applicable State regulations, or other applicable law, and take all reasonable steps to oppose any effort to secure disclosure of the information or material by the Federal banking agency.
(2) Privilege 
The provision pursuant to this section of information or material by a Federal banking agency or State insurance regulator shall not constitute a waiver of, or otherwise affect, any privilege to which the information or material is otherwise subject.
(f) Definitions 
For purposes of this section, the following definitions shall apply:
(1) Appropriate Federal banking agency; depository institution 
The terms appropriate Federal banking agency and depository institution have the same meanings as in section 1813 of title 12.
(2) Board and financial holding company 
The terms Board and financial holding company have the same meanings as in section 1841 of title 12.

15 USC 6717 - Definition of State

For purposes of this subchapter, the term State means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.

TITLE 15 - US CODE - SUBCHAPTER II - REDOMESTICATION OF MUTUAL INSURERS

15 USC 6731 - General application

This subchapter shall only apply to a mutual insurance company in a State which has not enacted a law which expressly establishes reasonable terms and conditions for a mutual insurance company domiciled in such State to reorganize into a mutual holding company.

15 USC 6732 - Redomestication of mutual insurers

(a) Redomestication 
A mutual insurer organized under the laws of any State may transfer its domicile to a transferee domicile as a step in a reorganization in which, pursuant to the laws of the transferee domicile and consistent with the standards in subsection (f) of this section, the mutual insurer becomes a stock insurer that is a direct or indirect subsidiary of a mutual holding company.
(b) Resulting domicile 
Upon complying with the applicable law of the transferee domicile governing transfers of domicile and completion of a transfer pursuant to this section, the mutual insurer shall cease to be a domestic insurer in the transferor domicile and, as a continuation of its corporate existence, shall be a domestic insurer of the transferee domicile.
(c) Licenses preserved 
The certificate of authority, agents appointments and licenses, rates, approvals and other items that a licensed State allows and that are in existence immediately prior to the date that a redomesticating insurer transfers its domicile pursuant to this subchapter shall continue in full force and effect upon transfer, if the insurer remains duly qualified to transact the business of insurance in such licensed State.
(d) Effectiveness of outstanding policies and contracts 

(1) In general 
All outstanding insurance policies and annuities contracts of a redomesticating insurer shall remain in full force and effect and need not be endorsed as to the new domicile of the insurer, unless so ordered by the State insurance regulator of a licensed State, and then only in the case of outstanding policies and contracts whose owners reside in such licensed State.
(2) Forms 

(A) Applicable State law may require a redomesticating insurer to file new policy forms with the State insurance regulator of a licensed State on or before the effective date of the transfer.
(B) Notwithstanding subparagraph (A), a redomesticating insurer may use existing policy forms with appropriate endorsements to reflect the new domicile of the redomesticating insurer until the new policy forms are approved for use by the State insurance regulator of such licensed State.
(e) Notice 
A redomesticating insurer shall give notice of the proposed transfer to the State insurance regulator of each licensed State and shall file promptly any resulting amendments to corporate documents required to be filed by a foreign licensed mutual insurer with the insurance regulator of each such licensed State.
(f) Procedural requirements 
No mutual insurer may redomesticate to another State and reorganize into a mutual holding company pursuant to this section unless the State insurance regulator of the transferee domicile determines that the plan of reorganization of the insurer includes the following requirements:
(1) Approval by board of directors and policyholders 
The reorganization is approved by at least a majority of the board of directors of the mutual insurer and at least a majority of the policyholders who vote after notice, disclosure of the reorganization and the effects of the transaction on policyholder contractual rights, and reasonable opportunity to vote, in accordance with such notice, disclosure, and voting procedures as are approved by the State insurance regulator of the transferee domicile.
(2) Continued voting control by policyholders; review of public stock offering 
After the consummation of a reorganization, the policyholders of the reorganized insurer shall have the same voting rights with respect to the mutual holding company as they had before the reorganization with respect to the mutual insurer. With respect to an initial public offering of stock, the offering shall be conducted in compliance with applicable securities laws and in a manner approved by the State insurance regulator of the transferee domicile.
(3) Award of stock or grant of options to officers and directors 
During the applicable period provided for under the State law of the transferee domicile following completion of an initial public offering, or for a period of six months if no such applicable period is provided, neither a stock holding company nor the converted insurer shall award any stock options or stock grants to persons who are elected officers or directors of the mutual holding company, the stock holding company, or the converted insurer, except with respect to any such awards or options to which a person is entitled as a policyholder and as approved by the State insurance regulator of the transferee domicile.
(4) Policyholder rights 
Upon reorganization into a mutual holding company, the contractual rights of the policyholders are preserved.
(5) Fair and equitable treatment of policyholders 
The reorganization is approved as fair and equitable to the policyholders by the insurance regulator of the transferee domicile.

15 USC 6733 - Effect on State laws restricting redomestication

(a) In general 
Unless otherwise permitted by this subchapter, State laws of any transferor domicile that conflict with the purposes and intent of this subchapter are preempted, including but not limited to
(1) any law that has the purpose or effect of impeding the activities of, taking any action against, or applying any provision of law or regulation to, any insurer or an affiliate of such insurer because that insurer or any affiliate plans to redomesticate, or has redomesticated, pursuant to this subchapter;
(2) any law that has the purpose or effect of impeding the activities of, taking action against, or applying any provision of law or regulation to, any insured or any insurance licensee or other intermediary because such person has procured insurance from or placed insurance with any insurer or affiliate of such insurer that plans to redomesticate, or has redomesticated, pursuant to this subchapter, but only to the extent that such law would treat such insured licensee or other intermediary differently than if the person procured insurance from, or placed insurance with, an insured licensee or other intermediary which had not redomesticated; and
(3) any law that has the purpose or effect of terminating, because of the redomestication of a mutual insurer pursuant to this subchapter, any certificate of authority, agent appointment or license, rate approval, or other approval, of any State insurance regulator or other State authority in existence immediately prior to the redomestication in any State other than the transferee domicile.
(b) Differential treatment prohibited 
No State law, regulation, interpretation, or functional equivalent thereof, of a State other than a transferee domicile may treat a redomesticating or redomesticated insurer or any affiliate thereof any differently than an insurer operating in that State that is not a redomesticating or redomesticated insurer.
(c) Laws prohibiting operations 
If any licensed State fails to issue, delays the issuance of, or seeks to revoke an original or renewal certificate of authority of a redomesticated insurer promptly following redomestication, except on grounds and in a manner consistent with its past practices regarding the issuance of certificates of authority to foreign insurers that are not redomesticating, then the redomesticating insurer shall be exempt from any State law of the licensed State to the extent that such State law or the operation of such State law would make unlawful, or regulate, directly or indirectly, the operation of the redomesticated insurer, except that such licensed State may require the redomesticated insurer to
(1) comply with the unfair claim settlement practices law of the licensed State;
(2) pay, on a nondiscriminatory basis, applicable premium and other taxes which are levied on licensed insurers or policyholders under the laws of the licensed State;
(3) register with and designate the State insurance regulator as its agent solely for the purpose of receiving service of legal documents or process;
(4) submit to an examination by the State insurance regulator in any licensed State in which the redomesticated insurer is doing business to determine the insurers financial condition, if
(A) the State insurance regulator of the transferee domicile has not begun an examination of the redomesticated insurer and has not scheduled such an examination to begin before the end of the 1-year period beginning on the date of the redomestication; and
(B) any such examination is coordinated to avoid unjustified duplication and repetition;
(5) comply with a lawful order issued in
(A) a delinquency proceeding commenced by the State insurance regulator of any licensed State if there has been a judicial finding of financial impairment under paragraph (7); or
(B) a voluntary dissolution proceeding;
(6) comply with any State law regarding deceptive, false, or fraudulent acts or practices, except that if the licensed State seeks an injunction regarding the conduct described in this paragraph, such injunction must be obtained from a court of competent jurisdiction as provided in section 6734 (a) of this title;
(7) comply with an injunction issued by a court of competent jurisdiction, upon a petition by the State insurance regulator alleging that the redomesticating insurer is in hazardous financial condition or is financially impaired;
(8) participate in any insurance insolvency guaranty association on the same basis as any other insurer licensed in the licensed State; and
(9) require a person acting, or offering to act, as an insurance licensee for a redomesticated insurer in the licensed State to obtain a license from that State, except that such State may not impose any qualification or requirement that discriminates against a nonresident insurance licensee.

15 USC 6734 - Other provisions

(a) Judicial review 
The appropriate United States district court shall have exclusive jurisdiction over litigation arising under this section[1] involving any redomesticating or redomesticated insurer.
(b) Severability 
If any provision of this section,[1] or the application thereof to any person or circumstances, is held invalid, the remainder of the section,[1] and the application of such provision to other persons or circumstances, shall not be affected thereby.
[1] See References in Text note below.

15 USC 6735 - Definitions

For purposes of this subchapter, the following definitions shall apply:
(1) Court of competent jurisdiction 
The term court of competent jurisdiction means a court authorized pursuant to section 6734 (a) of this title to adjudicate litigation arising under this subchapter.
(2) Domicile 
The term domicile means the State in which an insurer is incorporated, chartered, or organized.
(3) Insurance licensee 
The term insurance licensee means any person holding a license under State law to act as insurance agent, subagent, broker, or consultant.
(4) Institution 
The term institution means a corporation, joint stock company, limited liability company, limited liability partnership, association, trust, partnership, or any similar entity.
(5) Licensed State 
The term licensed State means any State, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands in which the redomesticating insurer has a certificate of authority in effect immediately prior to the redomestication.
(6) Mutual insurer 
The term mutual insurer means a mutual insurer organized under the laws of any State.
(7) Person 
The term person means an individual, institution, government or governmental agency, State or political subdivision of a State, public corporation, board, association, estate, trustee, or fiduciary, or other similar entity.
(8) Policyholder 
The term policyholder means the owner of a policy issued by a mutual insurer, except that, with respect to voting rights, the term means a member of a mutual insurer or mutual holding company granted the right to vote, as determined under applicable State law.
(9) Redomesticated insurer 
The term redomesticated insurer means a mutual insurer that has redomesticated pursuant to this subchapter.
(10) Redomesticating insurer 
The term redomesticating insurer means a mutual insurer that is redomesticating pursuant to this subchapter.
(11) Redomestication or transfer 
The term redomestication or transfer means the transfer of the domicile of a mutual insurer from one State to another State pursuant to this subchapter.
(12) State insurance regulator 
The term State insurance regulator means the principal insurance regulatory authority of a State, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
(13) State law 
The term State law means the statutes of any State, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands and any regulation, order, or requirement prescribed pursuant to any such statute.
(14) Transferee domicile 
The term transferee domicile means the State to which a mutual insurer is redomesticating pursuant to this subchapter.
(15) Transferor domicile 
The term transferor domicile means the State from which a mutual insurer is redomesticating pursuant to this subchapter.

TITLE 15 - US CODE - SUBCHAPTER III - NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS

15 USC 6751 - State flexibility in multistate licensing reforms

(a) In general 
The provisions of this subchapter shall take effect unless, not later than 3 years after November 12, 1999, at least a majority of the States
(1) have enacted uniform laws and regulations governing the licensure of individuals and entities authorized to sell and solicit the purchase of insurance within the State; or
(2) have enacted reciprocity laws and regulations governing the licensure of nonresident individuals and entities authorized to sell and solicit insurance within those States.
(b) Uniformity required 
States shall be deemed to have established the uniformity necessary to satisfy subsection (a)(1) of this section if the States
(1) establish uniform criteria regarding the integrity, personal qualifications, education, training, and experience of licensed insurance producers, including the qualification and training of sales personnel in ascertaining the appropriateness of a particular insurance product for a prospective customer;
(2) establish uniform continuing education requirements for licensed insurance producers;
(3) establish uniform ethics course requirements for licensed insurance producers in conjunction with the continuing education requirements under paragraph (2);
(4) establish uniform criteria to ensure that an insurance product, including any annuity contract, sold to a consumer is suitable and appropriate for the consumer based on financial information disclosed by the consumer; and
(5) do not impose any requirement upon any insurance producer to be licensed or otherwise qualified to do business as a nonresident that has the effect of limiting or conditioning that producers activities because of its residence or place of operations, except that countersignature requirements imposed on nonresident producers shall not be deemed to have the effect of limiting or conditioning a producers activities because of its residence or place of operations under this section.
(c) Reciprocity required 
States shall be deemed to have established the reciprocity required to satisfy subsection (a)(2) of this section if the following conditions are met:
(1) Administrative licensing procedures 
At least a majority of the States permit a producer that has a resident license for selling or soliciting the purchase of insurance in its home State to receive a license to sell or solicit the purchase of insurance in such majority of States as a nonresident to the same extent that such producer is permitted to sell or solicit the purchase of insurance in its State, if the producers home State also awards such licenses on such a reciprocal basis, without satisfying any additional requirements other than submitting
(A) a request for licensure;
(B) the application for licensure that the producer submitted to its home State;
(C) proof that the producer is licensed and in good standing in its home State; and
(D) the payment of any requisite fee to the appropriate authority.
(2) Continuing education requirements 
A majority of the States accept an insurance producers satisfaction of its home States continuing education requirements for licensed insurance producers to satisfy the States own continuing education requirements if the producers home State also recognizes the satisfaction of continuing education requirements on such a reciprocal basis.
(3) No limiting nonresident requirements 
A majority of the States do not impose any requirement upon any insurance producer to be licensed or otherwise qualified to do business as a nonresident that has the effect of limiting or conditioning that producers activities because of its residence or place of operations, except that countersignature requirements imposed on nonresident producers shall not be deemed to have the effect of limiting or conditioning a producers activities because of its residence or place of operations under this section.
(4) Reciprocal reciprocity 
Each of the States that satisfies paragraphs (1), (2), and (3) grants reciprocity to residents of all of the other States that satisfy such paragraphs.
(d) Determination 

(1) NAIC determination 
At the end of the 3-year period beginning on November 12, 1999, the National Association of Insurance Commissioners (hereafter in this subchapter referred to as the NAIC) shall determine, in consultation with the insurance commissioners or chief insurance regulatory officials of the States, whether the uniformity or reciprocity required by subsections (b) and (c) of this section has been achieved.
(2) Judicial review 
The appropriate United States district court shall have exclusive jurisdiction over any challenge to the NAICs determination under this section and such court shall apply the standards set forth in section 706 of title 5 when reviewing any such challenge.
(e) Continued application 
If, at any time, the uniformity or reciprocity required by subsections (b) and (c) of this section no longer exists, the provisions of this subchapter shall take effect 2 years after the date on which such uniformity or reciprocity ceases to exist, unless the uniformity or reciprocity required by those provisions is satisfied before the expiration of that 2-year period.
(f) Savings provision 
No provision of this section shall be construed as requiring that any law, regulation, provision, or action of any State which purports to regulate insurance producers, including any such law, regulation, provision, or action which purports to regulate unfair trade practices or establish consumer protections, including countersignature laws, be altered or amended in order to satisfy the uniformity or reciprocity required by subsections (b) and (c) of this section, unless any such law, regulation, provision, or action is inconsistent with a specific requirement of any such subsection and then only to the extent of such inconsistency.
(g) Uniform licensing 
Nothing in this section shall be construed to require any State to adopt new or additional licensing requirements to achieve the uniformity necessary to satisfy subsection (a)(1) of this section.

15 USC 6752 - National Association of Registered Agents and Brokers

(a) Establishment 
There is established the National Association of Registered Agents and Brokers (hereafter in this subchapter referred to as the Association).
(b) Status 
The Association shall
(1) be a nonprofit">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 Act, be subject to, and have all the powers conferred upon a nonprofit">nonprofit corporation by the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29y–1001 et seq.).

15 USC 6753 - Purpose

The purpose of the Association shall be to provide a mechanism through which uniform licensing, appointment, continuing education, and other insurance producer sales qualification requirements and conditions can be adopted and applied on a multistate basis, while preserving the right of States to license, supervise, and discipline insurance producers and to prescribe and enforce laws and regulations with regard to insurance-related consumer protection and unfair trade practices.

15 USC 6754 - Relationship to the Federal Government

The Association shall be subject to the supervision and oversight of the NAIC.

15 USC 6755 - Membership

(a) Eligibility 

(1) In general 
Any State-licensed insurance producer 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 producers 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.
(b) Authority to establish membership criteria 
The Association shall have the authority to 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.
(c) Establishment of classes and categories 

(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, or experience.
(2) Categories 
The Association may establish separate categories of membership for individuals and for other persons. The establishment of any such categories of membership shall be based either on the types of licensing categories that exist under State laws or on the aggregate amount of business handled by an insurance producer. No special categories of membership, and no distinct membership criteria, shall be established for members which are depository institutions or for their employees, agents, or affiliates.
(d) Membership criteria 

(1) In general 
The Association may establish criteria for membership which shall include standards for integrity, personal qualifications, education, training, and experience.
(2) Minimum standard 
In establishing criteria under paragraph (1), the Association shall consider the highest levels of insurance producer qualifications established under the licensing laws of the States.
(e) Effect of membership 
Membership in the Association shall entitle the member to licensure in each State for which the member pays the requisite fees, including licensing fees and, where applicable, bonding requirements, set by such State.
(f) Annual renewal 
Membership in the Association shall be renewed on an annual basis.
(g) Continuing education 
The Association shall establish, as a condition of membership, continuing education requirements which shall be comparable to or greater than the continuing education requirements under the licensing laws of a majority of the States.
(h) Suspension and revocation 
The Association may
(1) inspect and examine the records and offices of the members of the Association to determine compliance with the criteria for membership established by the Association; and
(2) suspend or revoke the membership of an insurance producer if
(A) the producer fails to meet the applicable membership criteria of the Association; or
(B) the producer has been subject to disciplinary action pursuant to a final adjudicatory proceeding under the jurisdiction of a State insurance regulator, and the Association concludes that retention of membership in the Association would not be in the public interest.
(i) Office of consumer complaints 

(1) In general 
The Association shall establish an office of consumer complaints that shall
(A) receive and investigate complaints from both consumers and State insurance regulators related to members of the Association; and
(B) recommend to the Association any disciplinary actions that the office considers appropriate, to the extent that any such recommendation is not inconsistent with State law.
(2) Records and referrals 
The office of consumer complaints of the Association shall
(A) maintain records of all complaints received in accordance with paragraph (1) and make such records available to the NAIC and to each State insurance regulator for the State of residence of the consumer who filed the complaint; and
(B) refer, when appropriate, any such complaint to any appropriate State insurance regulator.
(3) 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 home page.

15 USC 6756 - Board of directors

(a) Establishment 
There is established the board of directors of the Association (hereafter in this subchapter 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 
The Board shall have such powers and authority as may be specified in the bylaws of the Association.
(c) Composition 

(1) Members 
The Board shall be composed of 7 members appointed by the NAIC.
(2) Requirement 
At least 4 of the members of the Board shall each have significant experience with the regulation of commercial lines of insurance in at least 1 of the 20 States in which the greatest total dollar amount of commercial-lines insurance is placed in the United States.
(3) Initial Board membership 

(A) In general 
If, by the end of the 2-year period beginning on November 12, 1999, the NAIC has not appointed the initial 7 members of the Board of the Association, the initial Board shall consist of the 7 State insurance regulators of the 7 States with the greatest total dollar amount of commercial-lines insurance in place as of the end of such period.
(B) Alternate composition 
If any of the State insurance regulators described in subparagraph (A) declines to serve on the Board, the State insurance regulator with the next greatest total dollar amount of commercial-lines insurance in place, as determined by the NAIC as of the end of such period, shall serve as a member of the Board.
(C) Inoperability 
If fewer than 7 State insurance regulators accept appointment to the Board, the Association shall be established without NAIC oversight pursuant to section 6762 of this title.
(d) Terms 
The term of each director shall, after the initial appointment of the members of the Board, be for 3 years, with one-third of the directors to be appointed each year.
(e) Board vacancies 
A vacancy on the Board shall be filled in the same manner as the original appointment of the initial Board for the remainder of the term of the vacating member.
(f) Meetings 
The Board shall meet at the call of the chairperson, or as otherwise provided by the bylaws of the Association.

15 USC 6757 - Officers

(a) In general 

(1) Positions 
The officers of the Association shall consist of a chairperson and a vice chairperson of the Board, a president, secretary, and treasurer of the Association, and such other officers and assistant officers as may be deemed necessary.
(2) Manner of selection 
Each officer of the Board and the Association shall be elected or appointed at such time and in such manner and for such terms not exceeding 3 years as may be prescribed in the bylaws of the Association.
(b) Criteria for chairperson 
Only individuals who are members of the NAIC shall be eligible to serve as the chairperson of the board of directors.

15 USC 6758 - Bylaws, rules, and disciplinary action

(a) Adoption and amendment of bylaws 

(1) Copy required to be filed with the NAIC 
The board of directors of the Association shall file with the NAIC a copy of the proposed bylaws or any proposed amendment to the bylaws, accompanied by a concise general statement of the basis and purpose of such proposal.
(2) Effective date 
Except as provided in paragraph (3), any proposed bylaw or proposed amendment shall take effect
(A) 30 days after the date of the filing of a copy with the NAIC;
(B) upon such later date as the Association may designate; or
(C) upon such earlier date as the NAIC may determine.
(3) Disapproval by the NAIC 
Notwithstanding paragraph (2), a proposed bylaw or amendment shall not take effect if, after public notice and opportunity to participate in a public hearing
(A) the NAIC disapproves such proposal as being contrary to the public interest or contrary to the purposes of this subchapter and provides notice to the Association setting forth the reasons for such disapproval; or
(B) the NAIC finds that such proposal involves a matter of such significant public interest that public comment should be obtained, in which case it may, after notifying the Association in writing of such finding, require that the procedures set forth in subsection (b) of this section be followed with respect to such proposal, in the same manner as if such proposed bylaw change were a proposed rule change within the meaning of such subsection.
(b) Adoption and amendment of rules 

(1) Filing proposed regulations with the NAIC 

(A) In general 
The board of directors of the Association shall file with the NAIC a copy of any proposed rule or any proposed amendment to a rule of the Association which shall be accompanied by a concise general statement of the basis and purpose of such proposal.
(B) Other rules and amendments ineffective 
No proposed rule or amendment shall take effect unless approved by the NAIC or otherwise permitted in accordance with this paragraph.
(2) Initial consideration by the NAIC 
Not later than 35 days after the date of publication of notice of filing of a proposal, or before the end of such longer period not to exceed 90 days as the NAIC may designate after such date, if the NAIC finds such longer period to be appropriate and sets forth its reasons for so finding, or as to which the Association consents, the NAIC shall
(A) by order approve such proposed rule or amendment; or
(B) institute proceedings to determine whether such proposed rule or amendment should be modified or disapproved.
(3) NAIC proceedings 

(A) In general 
Proceedings instituted by the NAIC with respect to a proposed rule or amendment pursuant to paragraph (2) shall
(i) include notice of the grounds for disapproval under consideration;
(ii) provide opportunity for hearing; and
(iii) be concluded not later than 180 days after the date of the Associations filing of such proposed rule or amendment.
(B) Disposition of proposal 
At the conclusion of any proceeding under subparagraph (A), the NAIC shall, by order, approve or disapprove the proposed rule or amendment.
(C) Extension of time for consideration 
The NAIC may extend the time for concluding any proceeding under subparagraph (A) for
(i) not more than 60 days if the NAIC finds good cause for such extension and sets forth its reasons for so finding; or
(ii) such longer period as to which the Association consents.
(4) Standards for review 

(A) Grounds for approval 
The NAIC shall approve a proposed rule or amendment if the NAIC finds that the rule or amendment is in the public interest and is consistent with the purposes of this Act.
(B) Approval before end of notice period 
The NAIC shall not approve any proposed rule before the end of the 30-day period beginning on the date on which the Association files proposed rules or amendments in accordance with paragraph (1), unless the NAIC finds good cause for so doing and sets forth the reasons for so finding.
(5) Alternate procedure 

(A) In general 
Notwithstanding any provision of this subsection other than subparagraph (B), a proposed rule or amendment relating to the administration or organization of the Association shall take effect
(i) upon the date of filing with the NAIC, if such proposed rule or amendment is designated by the Association as relating solely to matters which the NAIC, consistent with the public interest and the purposes of this subsection, determines by rule do not require the procedures set forth in this paragraph; or
(ii) upon such date as the NAIC shall for good cause determine.
(B) Abrogation by the NAIC 

(i) In general At any time within 60 days after the date of filing of any proposed rule or amendment under subparagraph (A)(i) or clause (ii) of this subparagraph, the NAIC may repeal such rule or amendment and require that the rule or amendment be refiled and reviewed in accordance with this paragraph, if the NAIC finds that such action is necessary or appropriate in the public interest, for the protection of insurance producers or policyholders, or otherwise in furtherance of the purposes of this subchapter.
(ii) Effect of reconsideration by the NAIC Any action of the NAIC pursuant to clause (i) shall
(I) not affect the validity or force of a rule change during the period such rule or amendment was in effect; and
(II) not be considered to be a final action.
(c) Action required by the NAIC 
The NAIC may, in accordance with such rules as the NAIC determines to be necessary or appropriate to the public interest or to carry out the purposes of this subchapter, require the Association to adopt, amend, or repeal any bylaw, rule, or amendment of the Association, whenever adopted.
(d) 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), 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 subchapter, the rules or regulations under this subchapter, 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.
(e) NAIC review of disciplinary action 

(1) Notice to the NAIC 
If the Association orders any disciplinary action, the Association shall promptly notify the NAIC of such action.
(2) Review by the NAIC 
Any disciplinary action taken by the Association shall be subject to review by the NAIC
(A) on the NAICs own motion; or
(B) upon application by any person aggrieved by such action if such application is filed with the NAIC not more than 30 days after the later of
(i) the date the notice was filed with the NAIC pursuant to paragraph (1); or
(ii) the date the notice of the disciplinary action was received by such aggrieved person.
(f) Effect of review 
The filing of an application to the NAIC for review of a disciplinary action, or the institution of review by the NAIC on the NAICs own motion, shall not operate as a stay of disciplinary action unless the NAIC otherwise orders.
(g) Scope of review 

(1) In general 
In any proceeding to review such action, after notice and the opportunity for hearing, the NAIC shall
(A) determine whether the action should be taken;
(B) affirm, modify, or rescind the disciplinary sanction; or
(C) remand to the Association for further proceedings.
(2) Dismissal of review 
The NAIC may dismiss a proceeding to review disciplinary action if the NAIC finds that
(A) the specific grounds on which the action is based exist in fact;
(B) the action is in accordance with applicable rules and regulations; and
(C) such rules and regulations are, and were, applied in a manner consistent with the purposes of this subchapter.

15 USC 6759 - Assessments

(a) Insurance producers subject to assessment 
The Association may establish such application and membership fees as the Association finds necessary to cover the costs of its operations, including fees made reimbursable to the NAIC under subsection (b) of this section, except that, in setting such fees, the Association may not discriminate against smaller insurance producers.
(b) NAIC assessments 
The NAIC may assess the Association for any costs that the NAIC incurs under this subchapter.

15 USC 6760 - Functions of the NAIC

(a) Administrative procedure 
Determinations of the NAIC, for purposes of making rules pursuant to section 6758 of this title, shall be made after appropriate notice and opportunity for a hearing and for submission of views of interested persons.
(b) Examinations and reports 

(1) Examinations 
The NAIC may make such examinations and inspections of the Association and require the Association to furnish to the NAIC such reports and records or copies thereof as the NAIC may consider necessary or appropriate in the public interest or to effectuate the purposes of this subchapter.
(2) Report by Association 
As soon as practicable after the close of each fiscal year, the Association shall submit to the NAIC a written report regarding the conduct of its business, and the exercise of the other rights and powers granted by this subchapter, during such fiscal year. Such report 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. The NAIC shall transmit such report to the President and the Congress with such comment thereon as the NAIC determines to be appropriate.

15 USC 6761 - 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 subchapter.

15 USC 6762 - Elimination of NAIC oversight

(a) In general 
The Association shall be established without NAIC oversight and the provisions set forth in section 6754 of this title, subsections (a), (b), (c), and (e) of section 6758 of this title, and sections 6759 (b) and 6760 of this title shall cease to be effective if, at the end of the 2-year period beginning on the date on which the provisions of this subchapter take effect pursuant to section 6751 of this title
(1) at least a majority of the States representing at least 50 percent of the total United States commercial-lines insurance premiums have not satisfied the uniformity or reciprocity requirements of subsections (a), (b), and (c) of section 6751 of this title; and
(2) the NAIC has not approved the Associations bylaws as required by section 6758 of this title or is unable to operate or supervise the Association, or the Association is not conducting its activities as required under this Act.
(b) Board appointments 
If the repeals required by subsection (a) of this section are implemented, the following shall apply:
(1) General appointment power 
The President, with the advice and consent of the Senate, shall appoint the members of the Associations Board established under section 6756 of this title from lists of candidates recommended to the President by the NAIC.
(2) Procedures for obtaining NAIC appointment recommendations 

(A) Initial determination and recommendations 
After the date on which the provisions of subsection (a) of this section take effect, the NAIC shall, not later than 60 days thereafter, provide a list of recommended candidates to the President. If the NAIC fails to provide a list by that date, or if any list that is provided does not include at least 14 recommended candidates or comply with the requirements of section 6756 (c) of this title, the President shall, with the advice and consent of the Senate, make the requisite appointments without considering the views of the NAIC.
(B) Subsequent appointments 
After the initial appointments, the NAIC shall provide a list of at least six recommended candidates for the Board to the President by January 15 of each subsequent year. If the NAIC fails to provide a list by that date, or if any list that is provided does not include at least six recommended candidates or comply with the requirements of section 6756 (c) of this title, the President, with the advice and consent of the Senate, shall make the requisite appointments without considering the views of the NAIC.
(C) Presidential oversight 

(i) Removal If the President determines that the Association is not acting in the interests of the public, 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, with the advice and consent of the Senate, new members to fill the vacancies on the Board for the remainder of such terms.
(ii) 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 public interest.
(c) Annual report 
As soon as practicable after the close of each fiscal year, the Association shall submit to the President and to the Congress a written report relative to the conduct of its business, and the exercise of the other rights and powers granted by this subchapter, during such fiscal year. Such report 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.

15 USC 6763 - Relationship to State law

(a) Preemption of State laws 
State laws, regulations, provisions, or other actions purporting to regulate insurance producers shall be preempted as provided in subsection (b) of this section.
(b) Prohibited actions 
No State shall
(1) 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;
(2) impose any requirement upon a member of the Association that it pay different fees to be licensed or otherwise qualified to do business in that State, including bonding requirements, based on its residency;
(3) impose any licensing, appointment, integrity, personal or corporate qualifications, education, training, experience, residency, or continuing education requirement upon a member of the Association that is different from the criteria for membership in the Association or renewal of such membership, except that countersignature requirements imposed on nonresident producers shall not be deemed to have the effect of limiting or conditioning a producers activities because of its residence or place of operations under this section; or
(4) implement the procedures of such States system of licensing or renewing the licenses of insurance producers in a manner different from the authority of the Association under section 6755 of this title.
(c) Savings provision 
Except as provided in subsections (a) and (b) of this section, 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 insurance producers, including any such law, regulation, provision, or action which purports to regulate unfair trade practices or establish consumer protections, including countersignature laws.

15 USC 6764 - Coordination with other regulators

(a) Coordination with State insurance regulators 
The Association shall have the authority to
(1) issue uniform insurance producer applications and renewal applications that may be used to apply for the issuance or removal of State licenses, while preserving the ability of each State to impose such conditions on the issuance or renewal of a license as are consistent with section 6763 of this title;
(2) establish a central clearinghouse through which members of the Association may apply for the issuance or renewal of licenses in multiple States; and
(3) establish or utilize a national database for the collection of regulatory information concerning the activities of insurance producers.
(b) Coordination with the National Association of Securities Dealers 
The Association shall coordinate with the National Association of Securities Dealers in order to ease any administrative burdens that fall on persons that are members of both associations, consistent with the purposes of this subchapter and the Federal securities laws.

15 USC 6765 - Judicial review

(a) Jurisdiction 
The appropriate United States district court shall have exclusive jurisdiction over litigation involving the Association, including disputes between the Association and its members that arise under this subchapter. Suits brought in State court involving the Association shall be deemed to have arisen under Federal law and therefore be subject to jurisdiction in the appropriate United States district court.
(b) Exhaustion of remedies 
An aggrieved person shall be required to exhaust all available administrative remedies before the Association and the NAIC before it may seek judicial review of an Association decision.
(c) Standards of review 
The standards set forth in section 553 of title 5 shall be applied whenever a rule or bylaw of the Association is under judicial review, and the standards set forth in section 554 of title 5 shall be applied whenever a disciplinary action of the Association is judicially reviewed.

15 USC 6766 - Definitions

For purposes of this subchapter, 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 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, surplus lines broker, insurance consultant, limited insurance representative, and any other person 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, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.
(5) State law 
The term State law includes all laws, decisions, rules, regulations, or other State action having the effect of law, of any State. A law of the United States applicable only to the District of Columbia shall be treated as a State law rather than a law of the United States.

TITLE 15 - US CODE - SUBCHAPTER IV - RENTAL CAR AGENCY INSURANCE ACTIVITIES

15 USC 6781 - Standard of regulation for motor vehicle rentals

(a) Protection against retroactive application of regulatory and legal action 
Except as provided in subsection (b) of this section, during the 3-year period beginning on November 12, 1999, it shall be a presumption that no State law imposes any licensing, appointment, or education requirements on any person who solicits the purchase of or sells insurance connected with, and incidental to, the lease or rental of a motor vehicle.
(b) Preeminence of State insurance law 
No provision of this section shall be construed as altering the validity, interpretation, construction, or effect of
(1) any State statute;
(2) the prospective application of any court judgment interpreting or applying any State statute; or
(3) the prospective application of any final State regulation, order, bulletin, or other statutorily authorized interpretation or action,

which, by its specific terms, expressly regulates or exempts from regulation any person who solicits the purchase of or sells insurance connected with, and incidental to, the short-term lease or rental of a motor vehicle.

(c) Scope of application 
This section shall apply with respect to
(1) the lease or rental of a motor vehicle for a total period of 90 consecutive days or less; and
(2) insurance which is provided in connection with, and incidentally to, such lease or rental for a period of consecutive days not exceeding the lease or rental period.
(d) Motor vehicle defined 
For purposes of this section, the term motor vehicle has the same meaning as in section 13102 of title 49.

15 USC 6701 - Operation of State law

(a) State regulation of the business of insurance 
The Act entitled An Act to express the intent of Congress with reference to the regulation of the business of insurance and approved March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly referred to as the McCarran-Ferguson Act) remains the law of the United States.
(b) Mandatory insurance licensing requirements 
No person shall engage in the business of insurance in a State as principal or agent unless such person is licensed as required by the appropriate insurance regulator of such State in accordance with the relevant State insurance law, subject to subsections (c), (d), and (e) of this section.
(c) Affiliations 

(1) In general 
Except as provided in paragraph (2), no State may, by statute, regulation, order, interpretation, or other action, prevent or restrict a depository institution, or an affiliate thereof, from being affiliated directly or indirectly or associated with any person, as authorized or permitted by this Act or any other provision of Federal law.
(2) Insurance 
With respect to affiliations between depository institutions, or any affiliate thereof, and any insurer, paragraph (1) does not prohibit
(A) any State from
(i) collecting, reviewing, and taking actions (including approval and disapproval) on applications and other documents or reports concerning any proposed acquisition of, or a change or continuation of control of, an insurer domiciled in that State; and
(ii) exercising authority granted under applicable State law to collect information concerning any proposed acquisition of, or a change or continuation of control of, an insurer engaged in the business of insurance in, and regulated as an insurer by, such State;

during the 60-day period preceding the effective date of the acquisition or change or continuation of control, so long as the collecting, reviewing, taking actions, or exercising authority by the State does not have the effect of discriminating, intentionally or unintentionally, against a depository institution or an affiliate thereof, or against any other person based upon an association of such person with a depository institution;

(B) any State from requiring any person that is acquiring control of an insurer domiciled in that State to maintain or restore the capital requirements of that insurer to the level required under the capital regulations of general applicability in that State to avoid the requirement of preparing and filing with the insurance regulatory authority of that State a plan to increase the capital of the insurer, except that any determination by the State insurance regulatory authority with respect to such requirement shall be made not later than 60 days after the date of notification under subparagraph (A); or
(C) any State from restricting a change in the ownership of stock in an insurer, or a company formed for the purpose of controlling such insurer, after the conversion of the insurer from mutual to stock form so long as such restriction does not have the effect of discriminating, intentionally or unintentionally, against a depository institution or an affiliate thereof, or against any other person based upon an association of such person with a depository institution.
(d) Activities 

(1) In general 
Except as provided in paragraph (3), and except with respect to insurance sales, solicitation, and cross marketing activities, which shall be governed by paragraph (2), no State may, by statute, regulation, order, interpretation, or other action, prevent or restrict a depository institution or an affiliate thereof from engaging directly or indirectly, either by itself or in conjunction with an affiliate, or any other person, in any activity authorized or permitted under this Act and the amendments made by this Act.
(2) Insurance sales 

(A) In general 
In accordance with the legal standards for preemption set forth in the decision of the Supreme Court of the United States in Barnett Bank of Marion County N.A. v. Nelson, 517 U.S. 25 (1996), no State may, by statute, regulation, order, interpretation, or other action, prevent or significantly interfere with the ability of a depository institution, or an affiliate thereof, to engage, directly or indirectly, either by itself or in conjunction with an affiliate or any other person, in any insurance sales, solicitation, or crossmarketing activity.
(B) Certain State laws preserved 
Notwithstanding subparagraph (A), a State may impose any of the following restrictions, or restrictions that are substantially the same as but no more burdensome or restrictive than those in each of the following clauses:
(i) Restrictions prohibiting the rejection of an insurance policy by a depository institution or an affiliate of a depository institution, solely because the policy has been issued or underwritten by any person who is not associated with such depository institution or affiliate when the insurance is required in connection with a loan or extension of credit.
(ii) Restrictions prohibiting a requirement for any debtor, insurer, or insurance agent or broker to pay a separate charge in connection with the handling of insurance that is required in connection with a loan or other extension of credit or the provision of another traditional banking product by a depository institution, or any affiliate of a depository institution, unless such charge would be required when the depository institution or affiliate is the licensed insurance agent or broker providing the insurance.
(iii) Restrictions prohibiting the use of any advertisement or other insurance promotional material by a depository institution or any affiliate of a depository institution that would cause a reasonable person to believe mistakenly that
(I) the Federal Government or a State is responsible for the insurance sales activities of, or stands behind the credit of, the institution or affiliate; or
(II) a State, or the Federal Government guarantees any returns on insurance products, or is a source of payment on any insurance obligation of or sold by the institution or affiliate;
(iv) Restrictions prohibiting the payment or receipt of any commission or brokerage fee or other valuable consideration for services as an insurance agent or broker to or by any person, unless such person holds a valid State license regarding the applicable class of insurance at the time at which the services are performed, except that, in this clause, the term services as an insurance agent or broker does not include a referral by an unlicensed person of a customer or potential customer to a licensed insurance agent or broker that does not include a discussion of specific insurance policy terms and conditions.
(v) Restrictions prohibiting any compensation paid to or received by any individual who is not licensed to sell insurance, for the referral of a customer that seeks to purchase, or seeks an opinion or advice on, any insurance product to a person that sells or provides opinions or advice on such product, based on the purchase of insurance by the customer.
(vi) Restrictions prohibiting the release of the insurance information of a customer (defined as information concerning the premiums, terms, and conditions of insurance coverage, including expiration dates and rates, and insurance claims of a customer contained in the records of the depository institution or an affiliate thereof) to any person other than an officer, director, employee, agent, or affiliate of a depository institution, for the purpose of soliciting or selling insurance, without the express consent of the customer, other than a provision that prohibits
(I) a transfer of insurance information to an unaffiliated insurer in connection with transferring insurance in force on existing insureds of the depository institution or an affiliate thereof, or in connection with a merger with or acquisition of an unaffiliated insurer; or
(II) the release of information as otherwise authorized by State or Federal law.
(vii) Restrictions prohibiting the use of health information obtained from the insurance records of a customer for any purpose, other than for its activities as a licensed agent or broker, without the express consent of the customer.
(viii) Restrictions prohibiting the extension of credit or any product or service that is equivalent to an extension of credit, lease or sale of property of any kind, or furnishing of any services or fixing or varying the consideration for any of the foregoing, on the condition or requirement that the customer obtain insurance from a depository institution or an affiliate of a depository institution, or a particular insurer, agent, or broker, other than a prohibition that would prevent any such depository institution or affiliate
(I) from engaging in any activity described in this clause that would not violate section 106 of the Bank Holding Company Act Amendments of 1970 [12 U.S.C. 1971 et seq.], as interpreted by the Board of Governors of the Federal Reserve System; or
(II) from informing a customer or prospective customer that insurance is required in order to obtain a loan or credit, that loan or credit approval is contingent upon the procurement by the customer of acceptable insurance, or that insurance is available from the depository institution or an affiliate of the depository institution.
(ix) Restrictions requiring, when an application by a consumer for a loan or other extension of credit from a depository institution is pending, and insurance is offered or sold to the consumer or is required in connection with the loan or extension of credit by the depository institution or any affiliate thereof, that a written disclosure be provided to the consumer or prospective customer indicating that the customers choice of an insurance provider will not affect the credit decision or credit terms in any way, except that the depository institution may impose reasonable requirements concerning the creditworthiness of the insurer and scope of coverage chosen.
(x) Restrictions requiring clear and conspicuous disclosure, in writing, where practicable, to the customer prior to the sale of any insurance policy that such policy
(I) is not a deposit;
(II) is not insured by the Federal Deposit Insurance Corporation;
(III) is not guaranteed by any depository institution or, if appropriate, an affiliate of any such institution or any person soliciting the purchase of or selling insurance on the premises thereof; and
(IV) where appropriate, involves investment risk, including potential loss of principal.
(xi) Restrictions requiring that, when a customer obtains insurance (other than credit insurance or flood insurance) and credit from a depository institution, or any affiliate of such institution, or any person soliciting the purchase of or selling insurance on the premises thereof, the credit and insurance transactions be completed through separate documents.
(xii) Restrictions prohibiting, when a customer obtains insurance (other than credit insurance or flood insurance) and credit from a depository institution or an affiliate of such institution, or any person soliciting the purchase of or selling insurance on the premises thereof, inclusion of the expense of insurance premiums in the primary credit transaction without the express written consent of the customer.
(xiii) Restrictions requiring maintenance of separate and distinct books and records relating to insurance transactions, including all files relating to and reflecting consumer complaints, and requiring that such insurance books and records be made available to the appropriate State insurance regulator for inspection upon reasonable notice.
(C) Limitations 

(i) OCC deference Section 6714 (e) of this title does not apply with respect to any State statute, regulation, order, interpretation, or other action regarding insurance sales, solicitation, or cross marketing activities described in subparagraph (A) that was issued, adopted, or enacted before September 3, 1998, and that is not described in subparagraph (B).
(ii) Nondiscrimination Subsection (e) of this section does not apply with respect to any State statute, regulation, order, interpretation, or other action regarding insurance sales, solicitation, or cross marketing activities described in subparagraph (A) that was issued, adopted, or enacted before September 3, 1998, and that is not described in subparagraph (B).
(iii) Construction Nothing in this paragraph shall be construed
(I) to limit the applicability of the decision of the Supreme Court in Barnett Bank of Marion County N.A. v. Nelson, 517 U.S. 25 (1996) with respect to any State statute, regulation, order, interpretation, or other action that is not referred to or described in subparagraph (B); or
(II) to create any inference with respect to any State statute, regulation, order, interpretation, or other action that is not described in this paragraph.
(3) Insurance activities other than sales 
State statutes, regulations, interpretations, orders, and other actions shall not be preempted under paragraph (1) to the extent that they
(A) relate to, or are issued, adopted, or enacted for the purpose of regulating the business of insurance in accordance with the Act entitled An Act to express the intent of Congress with reference to the regulation of the business of insurance and approved March 9, 1945 (15 U.S.C. 1011 et seq.) (commonly referred to as the McCarran-Ferguson Act);
(B) apply only to persons that are not depository institutions, but that are directly engaged in the business of insurance (except that they may apply to depository institutions engaged in providing savings bank life insurance as principal to the extent of regulating such insurance);
(C) do not relate to or directly or indirectly regulate insurance sales, solicitations, or cross marketing activities; and
(D) are not prohibited under subsection (e) of this section.
(4) Financial activities other than insurance 
No State statute, regulation, order, interpretation, or other action shall be preempted under paragraph (1) to the extent that
(A) it does not relate to, and is not issued and adopted, or enacted for the purpose of regulating, directly or indirectly, insurance sales, solicitations, or cross marketing activities covered under paragraph (2);
(B) it does not relate to, and is not issued and adopted, or enacted for the purpose of regulating, directly or indirectly, the business of insurance activities other than sales, solicitations, or cross marketing activities, covered under paragraph (3);
(C) it does not relate to securities investigations or enforcement actions referred to in subsection (f) of this section; and
(D) it
(i) does not distinguish by its terms between depository institutions, and affiliates thereof, engaged in the activity at issue and other persons engaged in the same activity in a manner that is in any way adverse with respect to the conduct of the activity by any such depository institution or affiliate engaged in the activity at issue;
(ii) as interpreted or applied, does not have, and will not have, an impact on depository institutions, or affiliates thereof, engaged in the activity at issue, or any person who has an association with any such depository institution or affiliate, that is substantially more adverse than its impact on other persons engaged in the same activity that are not depository institutions or affiliates thereof, or persons who do not have an association with any such depository institution or affiliate;
(iii) does not effectively prevent a depository institution or affiliate thereof from engaging in activities authorized or permitted by this Act or any other provision of Federal law; and
(iv) does not conflict with the intent of this Act generally to permit affiliations that are authorized or permitted by Federal law.
(e) Nondiscrimination 
Except as provided in any restrictions described in subsection (d)(2)(B) of this section, no State may, by statute, regulation, order, interpretation, or other action, regulate the insurance activities authorized or permitted under this Act or any other provision of Federal law of a depository institution, or affiliate thereof, to the extent that such statute, regulation, order, interpretation, or other action
(1) distinguishes by its terms between depository institutions, or affiliates thereof, and other persons engaged in such activities, in a manner that is in any way adverse to any such depository institution, or affiliate thereof;
(2) as interpreted or applied, has or will have an impact on depository institutions, or affiliates thereof, that is substantially more adverse than its impact on other persons providing the same products or services or engaged in the same activities that are not depository institutions, or affiliates thereof, or persons or entities affiliated therewith;
(3) effectively prevents a depository institution, or affiliate thereof, from engaging in insurance activities authorized or permitted by this Act or any other provision of Federal law; or
(4) conflicts with the intent of this Act generally to permit affiliations that are authorized or permitted by Federal law between depository institutions, or affiliates thereof, and persons engaged in the business of insurance.
(f) Limitation 
Subsections (c) and (d) of this section shall not be construed to affect
(1) the jurisdiction of the securities commission (or any agency or office performing like functions) of any State, under the laws of such State
(A) to investigate and bring enforcement actions, consistent with section 77r (c) of this title, with respect to fraud or deceit or unlawful conduct by any person, in connection with securities or securities transactions; or
(B) to require the registration of securities or the licensure or registration of brokers, dealers, or investment advisers (consistent with section 80b–3a of this title), or the associated persons of a broker, dealer, or investment adviser (consistent with such section 80b–3a of this title); or
(2) State laws, regulations, orders, interpretations, or other actions of general applicability relating to the governance of corporations, partnerships, limited liability companies, or other business associations incorporated or formed under the laws of that State or domiciled in that State, or the applicability of the antitrust laws of any State or any State law that is similar to the antitrust laws if such laws, regulations, orders, interpretations, or other actions are not inconsistent with the purposes of this Act to authorize or permit certain affiliations and to remove barriers to such affiliations.
(g) Definitions 
For purposes of this section, the following definitions shall apply:
(1) Affiliate 
The term affiliate means any company that controls, is controlled by, or is under common control with another company.
(2) Antitrust laws 
The term antitrust laws has the meaning given the term in subsection (a) of section 12 of this title, and includes section 45 of this title (to the extent that such section 45 relates to unfair methods of competition).
(3) Depository institution 
The term depository institution
(A) has the meaning given the term in section 1813 of title 12; and
(B) includes any foreign bank that maintains a branch, agency, or commercial lending company in the United States.
(4) Insurer 
The term insurer means any person engaged in the business of insurance.
(5) State 
The term State means any State of the United States, the District of Columbia, any territory of the United States, Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, the Virgin Islands, and the Northern Mariana Islands.