S 534 · 113th Congress 2013โ€“2015, ended

National Association of Registered Agents and Brokers Reform Act of 2013

Latest action · Jul 29, 2013 Placed on Senate Legislative Calendar under General Orders. Calendar No. 151.

Progress

Where this bill reached, and when. A stage with no date was not reached; one that failed a vote and later carried shows the date it carried.

  1. IntroducedMar 12, 2013
  2. Passed SenateNot reached
  3. Passed HouseNot reached
  4. To the PresidentNot reached
  5. Became lawNot reached

Summary

National Association of Registered Agents and Brokers Reform Act of 2013 - (Sec. 2) Amends the Gramm-Leach-Bliley Act to repeal the contingent conditions under which the National Association of Registered Agents and Brokers (NARAB) shall not be established. Establishes the NARAB without contingent conditions as an independent nonprofit corporation to prescribe, on a multi-state basis, licensing and insurance producer qualification requirements and conditions.

Prohibits NARAB from merging with or into any other private or public entity.

Requires the NARAB, without affecting state regulatory authority, to provide a mechanism for the adoption and multi-state application of requirements and conditions pertaining to: (1) licensing, continuing education, and other qualifications of non-NARAB insurance producers; (2) resident or nonresident insurance producer appointments; (3) supervision and disciplining of such producers; and (4) the setting of licensing fees for insurance producers.

Makes any state-licensed insurance producer eligible to join the NARAB, except during a period of license suspension or revocation. Requires an individual insurance producer to undergo a criminal history record check by the Federal Bureau of Investigation (FBI). Requires the NARAB to submit to the FBI identification information obtained from the insurance producer, upon producer request, as well as a request of its own for the criminal history record check.

Authorizes the NARAB to: (1) establish membership criteria; and (2) deny membership to an individual state-licensed insurance producer on the basis of the criminal history information obtained, or where the producer has been subject to certain disciplinary action.

Prescribes procedures governing a criminal history record check, including the rights of applicants denied membership.

Authorizes NARAB to establish membership criteria, including separate classes of membership and membership criteria for business entities; but prohibits it from establishing criteria that unfairly limit the ability of a small insurance producer to become a member of NARAB, including discriminatory membership fees.

Authorizes NARAB to establish separate categories of membership for insurance producers and for other persons or entities within each class, based on the types of licensing categories that exist under state laws.

Prohibits NARAB from establishing special categories of membership, including distinct membership criteria for members that are depository institutions or for their employees, agents, or affiliates.

Prohibits NARAB from adopting any qualification less protective to the public than that contained in the National Association of Insurance Commissioners (NAIC) Producer Licensing Model Act.

Prescribes procedures for authorized information sharing pursuant to a request by a licensed insurance producer.

Authorizes the NARAB to deny membership to any state-licensed insurance producer for failure to meet membership criteria.

States that NARAB membership authorizes an insurance producer to engage in the business of insurance in any state for any lines of insurance specified in the producer's home state license, including claims adjustments and settlement, risk management, and specified insurance-related consulting activities.

Makes NARAB membership equivalent to a nonresident insurance producer license for specified purposes.

Empowers NARAB to act as agent for any member for the purpose of remitting licensing fees to a state.

Requires NARAB to disclose to states, including state insurance regulators and the NAIC, on an ongoing basis, a list of the states in which each member is authorized to operate.

Retains state regulatory jurisdiction regarding: (1) consumer protection and market conduct, and (2) state disciplinary authority.

Requires NARAB to establish, as a condition of membership, continuing education requirements comparable to the continuing education requirements under the licensing laws of a majority of the states.

Prohibits NARAB from offering continuing education courses for insurance producers.

Grants NARAB disciplinary enforcement powers.

Requires NARAB to: (1) receive and investigate consumer complaints, and to maintain a toll-free telephone number; and (2) refer any such complaint to the state insurance regulator. Prescribes information- sharing procedures and limitations with the NAIC or governmental entities.

Authorizes NARAB to establish: (1) a central clearinghouse, or utilize NAIC as one, through which NARAB members may disclose their intent to operate in one or more states; and (2) a database, or utilize NAIC as one, for the collection of regulatory information concerning the activities of insurance producers.

Establishes the NARAB board of directors, whose membership shall include state insurance commissioners. Sets forth terms and procedures for appointment of members by the President. Authorizes reappointment to successive terms. Prohibits compensation on account of Board membership.

Declares that NARAB 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.

Sets forth procedures for presidential oversight of NARAB, including removal of the entire existing Board.

Sets forth a limited preemption of state laws purporting to regulate insurance producers.

Directs NARAB to coordinate with the Financial Industry Regulatory Authority (FINRA) in order to ease administrative burdens that fall on NARAB members subject to regulation by FINRA.

Authorizes any person aggrieved by a NARAB decision or action to commence a civil action in an appropriate federal district court.

Prohibits federal funding of NARAB.

Cosponsors 27

Members who signed on, in the order they did. Signatures ran from Mar 12, 2013 to Jan 16, 2014; 13 are original cosponsors, there from the day it was introduced.

SeatCosponsorSigned on
D-FLBill NelsonOriginalMar 12, 2013
D-CTChristopher MurphyOriginalMar 12, 2013
R-NVDean HellerOriginalMar 12, 2013
D-NDHeidi HeitkampOriginalMar 12, 2013
R-KSJerry MoranOriginalMar 12, 2013
D-VAMark R. WarnerOriginalMar 12, 2013
D-COMichael F. BennetOriginalMar 12, 2013
R-IDMike CrapoOriginalMar 12, 2013
R-NEMike JohannsOriginalMar 12, 2013
D-NJRobert MenendezOriginalMar 12, 2013
R-MSRoger F. WickerOriginalMar 12, 2013
R-GASaxby ChamblissOriginalMar 12, 2013
D-DEThomas R. CarperOriginalMar 12, 2013
R-MORoy BluntApr 8, 2013
D-COMark UdallApr 17, 2013

Committees 1

Where it was sent and what each committee and subcommittee did with it, in order.

ChamberCommitteeWhat it did
SenateBanking, Housing, and Urban Affairs Committee
Referred Mar 12, 2013Markup Jun 6, 2013Reported Jul 29, 2013
Securities, Insurance, and Investment Subcommittee
Hearings Mar 19, 2013

Actions 6

Everything that happened, newest first.

  1. Jul 29, 2013Committee on Banking, Housing, and Urban Affairs. Reported by Senator Johnson SD, with an amendment in the nature of a substitute. With written report No. 113-82.
  2. Jul 29, 2013Placed on Senate Legislative Calendar under General Orders. Calendar No. 151.
  3. Jun 6, 2013Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
  4. Mar 19, 2013Committee on Banking, Housing, and Urban Affairs Subcommittee on Securities, Insurance, and Investment. Hearings held. With printed Hearing: S.Hrg. 113-21.
  5. Mar 12, 2013Introduced in Senate

Research

What has been written about this bill: committee reports, cost estimates, the sponsor’s authority statement, printed hearings and the Congressional Research Service’s work.

Committee report

Congressional Budget Office cost estimate

  1. Jun 13, 2013S. 534, National Association of Registered Agents and Brokers Reform Act of 2013As ordered reported by the Senate Committee on Banking, Housing, and Urban Affairs on June 6, 2013

Printed hearings 1

Hearings whose printed record names this bill, newest first: hearings on it, and wider hearings where it came up.

NumberHearingCommitteeHeld
S. Hrg. 113-21STREAMLINING REGULATION, IMPROVING CONSUMER PROTECTION, AND INCREASING COMPETITION IN INSURANCE MARKETS91 pagesBanking, Housing, and Urban Affairs CommitteeMar 19, 2013

CRS reports 4

Congressional Research Service work that CRS links to this bill or the law it became, newest first.

Cite it 4

Products on other subjects that cite it, usually among other measures.

Related bills 3

Companion bills and other measures the record links to this one.

Titles 3

Every title it has carried, official and short, at each stage.

Official Title as Introduced
A bill to reform the National Association of Registered Agents and Brokers, and for other purposes.
Short Titles as Introduced
National Association of Registered Agents and Brokers Reform Act of 2013
Short Titles as Reported to Senate
National Association of Registered Agents and Brokers Reform Act of 2013

Subjects

Assigned by the Library of Congress. Policy area: Finance and Financial Sector.

Text 2

Each version as it was printed, newest first.

  1. Jul 29, 2013Reported to Senate
  2. Mar 12, 2013Introduced in Senate

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Everything here is as published by Congress: the summary is the Congressional Research Service's, the action wording is the clerks', and the subjects are the Library of Congress's. How far it got is read from the actions themselves, taking the most recent one of each kind, so a bill that failed a vote and later passed is shown as having passed. Records come from this bill on Congress.gov and govinfo.gov; cost estimates are the Congressional Budget Office's, and the hearings are the printed hearings GovInfo publishes, which can appear months after the hearing.