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					§ 6756                           TITLE 15—COMMERCE AND TRADE                                      Page 1960

        (B) the suspension or revocation is subse-          (2) suspend or revoke the membership of an
      quently overturned.                                 insurance producer if—
(b) Authority to establish membership criteria                 (A) the producer fails to meet the applica-
                                                            ble membership criteria of the Association;
   The Association shall have the authority to              or
establish membership criteria that—                            (B) the producer has been subject to dis-
      (1) bear a reasonable relationship to the pur-        ciplinary action pursuant to a final adju-
   poses for which the Association was estab-               dicatory proceeding under the jurisdiction of
   lished; and                                              a State insurance regulator, and the Asso-
      (2) do not unfairly limit the access of small-        ciation concludes that retention of member-
   er agencies to the Association membership.               ship in the Association would not be in the
(c) Establishment of classes and categories                 public interest.
   (1) Classes of membership                           (i) Office of consumer complaints
      The Association may establish separate              (1) In general
   classes of membership, with separate criteria,           The Association shall establish an office of
   if the Association reasonably determines that          consumer complaints that shall—
   performance of different duties requires dif-               (A) receive and investigate complaints
   ferent levels of education, training, or experi-         from both consumers and State insurance
   ence.                                                    regulators related to members of the Asso-
   (2) Categories                                           ciation; and
      The Association may establish separate cat-              (B) recommend to the Association any dis-
   egories of membership for individuals and for            ciplinary actions that the office considers
   other persons. The establishment of any such             appropriate, to the extent that any such rec-
   categories of membership shall be based either           ommendation is not inconsistent with State
   on the types of licensing categories that exist          law.
   under State laws or on the aggregate amount            (2) Records and referrals
   of business handled by an insurance producer.            The office of consumer complaints of the As-
   No special categories of membership, and no            sociation shall—
   distinct membership criteria, shall be estab-               (A) maintain records of all complaints re-
   lished for members which are depository insti-           ceived in accordance with paragraph (1) and
   tutions or for their employees, agents, or af-           make such records available to the NAIC
   filiates.                                                and to each State insurance regulator for
(d) Membership criteria                                     the State of residence of the consumer who
   (1) In general                                           filed the complaint; and
                                                               (B) refer, when appropriate, any such com-
      The Association may establish criteria for            plaint to any appropriate State insurance
   membership which shall include standards for             regulator.
   integrity, personal qualifications, education,
   training, and experience.                              (3) Telephone and other access
   (2) Minimum standard                                     The office of consumer complaints shall
                                                          maintain a toll-free telephone number for the
      In establishing criteria under paragraph (1),       purpose of this subsection and, as practicable,
   the Association shall consider the highest lev-        other alternative means of communication
   els of insurance producer qualifications estab-        with consumers, such as an Internet home
   lished under the licensing laws of the States.         page.
(e) Effect of membership                               (Pub. L. 106–102, title III, § 325, Nov. 12, 1999, 113
   Membership in the Association shall entitle         Stat. 1424.)
the member to licensure in each State for which
the member pays the requisite fees, including li-      § 6756. Board of directors
censing fees and, where applicable, bonding re-        (a) Establishment
quirements, set by such State.
                                                         There is established the board of directors of
(f) Annual renewal                                     the Association (hereafter in this subchapter re-
   Membership in the Association shall be re-          ferred to as the ‘‘Board’’) for the purpose of gov-
newed on an annual basis.                              erning and supervising the activities of the As-
(g) Continuing education                               sociation and the members of the Association.
   The Association shall establish, as a condition     (b) Powers
of membership, continuing education require-             The Board shall have such powers and author-
ments which shall be comparable to or greater          ity as may be specified in the bylaws of the As-
than the continuing education requirements             sociation.
under the licensing laws of a majority of the          (c) Composition
States.
                                                         (1) Members
(h) Suspension and revocation
                                                           The Board shall be composed of 7 members
   The Association may—                                  appointed by the NAIC.
      (1) inspect and examine the records and of-
   fices of the members of the Association to de-        (2) Requirement
   termine compliance with the criteria for mem-           At least 4 of the members of the Board shall
   bership established by the Association; and           each have significant experience with the reg-
Page 1961                         TITLE 15—COMMERCE AND TRADE                                           § 6758

   ulation of commercial lines of insurance in at        (Pub. L. 106–102, title III, § 327, Nov. 12, 1999, 113
   least 1 of the 20 States in which the greatest        Stat. 1427.)
   total dollar amount of commercial-lines insur-
   ance is placed in the United States.                  § 6758. Bylaws, rules, and disciplinary action
   (3) Initial Board membership                          (a) Adoption and amendment of bylaws
     (A) In general                                        (1) Copy required to be filed with the NAIC
        If, by the end of the 2-year period begin-           The board of directors of the Association
     ning on November 12, 1999, the NAIC has not           shall file with the NAIC a copy of the proposed
     appointed the initial 7 members of the Board          bylaws or any proposed amendment to the by-
     of the Association, the initial Board shall           laws, accompanied by a concise general state-
     consist of the 7 State insurance regulators of        ment of the basis and purpose of such pro-
     the 7 States with the greatest total dollar           posal.
     amount of commercial-lines insurance in               (2) Effective date
     place as of the end of such period.
                                                             Except as provided in paragraph (3), any pro-
     (B) Alternate composition                             posed bylaw or proposed amendment shall
        If any of the State insurance regulators           take effect—
     described in subparagraph (A) declines to                  (A) 30 days after the date of the filing of a
     serve on the Board, the State insurance reg-            copy with the NAIC;
     ulator with the next greatest total dollar                 (B) upon such later date as the Association
     amount of commercial-lines insurance in                 may designate; or
     place, as determined by the NAIC as of the                 (C) upon such earlier date as the NAIC
     end of such period, shall serve as a member             may determine.
     of the Board.                                         (3) Disapproval by the NAIC
     (C) Inoperability                                       Notwithstanding paragraph (2), a proposed
        If fewer than 7 State insurance regulators         bylaw or amendment shall not take effect if,
     accept appointment to the Board, the Asso-            after public notice and opportunity to partici-
     ciation shall be established without NAIC             pate in a public hearing—
     oversight pursuant to section 6762 of this                 (A) the NAIC disapproves such proposal as
     title.                                                  being contrary to the public interest or con-
(d) Terms                                                    trary to the purposes of this subchapter and
                                                             provides notice to the Association setting
   The term of each director shall, after the ini-           forth the reasons for such disapproval; or
tial appointment of the members of the Board,                   (B) the NAIC finds that such proposal in-
be for 3 years, with one-third of the directors to           volves a matter of such significant public in-
be appointed each year.                                      terest that public comment should be ob-
(e) Board vacancies                                          tained, in which case it may, after notifying
   A vacancy on the Board shall be filled in the             the Association in writing of such finding,
same manner as the original appointment of the               require that the procedures set forth in sub-
initial Board for the remainder of the term of               section (b) of this section be followed with
the vacating member.                                         respect to such proposal, in the same man-
                                                             ner as if such proposed bylaw change were a
(f) Meetings                                                 proposed rule change within the meaning of
   The Board shall meet at the call of the chair-            such subsection.
person, or as otherwise provided by the bylaws           (b) Adoption and amendment of rules
of the Association.
                                                           (1) Filing proposed regulations with the NAIC
(Pub. L. 106–102, title III, § 326, Nov. 12, 1999, 113
                                                             (A) In general
Stat. 1426.)
                                                                The board of directors of the Association
§ 6757. Officers                                             shall file with the NAIC a copy of any pro-
(a) In general                                               posed rule or any proposed amendment to a
                                                             rule of the Association which shall be ac-
  (1) Positions                                              companied by a concise general statement of
     The officers of the Association shall consist           the basis and purpose of such proposal.
  of a chairperson and a vice chairperson of the             (B) Other rules and amendments ineffective
  Board, a president, secretary, and treasurer of
  the Association, and such other officers and                  No proposed rule or amendment shall take
  assistant officers as may be deemed necessary.             effect unless approved by the NAIC or other-
                                                             wise permitted in accordance with this para-
  (2) Manner of selection                                    graph.
     Each officer of the Board and the Associa-            (2) Initial consideration by the NAIC
  tion shall be elected or appointed at such time
  and in such manner and for such terms not ex-              Not later than 35 days after the date of pub-
  ceeding 3 years as may be prescribed in the by-          lication of notice of filing of a proposal, or be-
  laws of the Association.                                 fore the end of such longer period not to ex-
                                                           ceed 90 days as the NAIC may designate after
(b) Criteria for chairperson                               such date, if the NAIC finds such longer period
  Only individuals who are members of the NAIC             to be appropriate and sets forth its reasons for
shall be eligible to serve as the chairperson of           so finding, or as to which the Association con-
the board of directors.                                    sents, the NAIC shall—

				
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