15 U.S.C. § 6758 — Liability of the Association and the Board

Page 2286 TITLE 15—COMMERCE AND TRADE § 6756 (A) any act or practice in which the mem- ber has been found to have been engaged; (B) the specific provision of this sub- chapter or standard of the Association that any such act or practice is deemed to vio- late; and (C) the sanction imposed and the reason for the sanction. (3) Ineligibility of private sector representa- tives Board members appointed pursuant to sec- tion 6754(c)(3) of this title may not— (A) participate in any disciplinary action or be counted toward establishing a quorum during a disciplinary action; and (B) have access to confidential information concerning any disciplinary action. (Pub. L. 106–102, title III, § 325, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 23.) Editorial Notes PRIOR PROVISIONS Provisions similar to this section were contained in section 6758 of this title, prior to the general amend- ment of this subchapter by Pub. L. 114–1. A prior section 6755, Pub. L. 106–102, title III, § 325, Nov. 12, 1999, 113 Stat. 1424, related to membership in the Association, prior to the general amendment of this subchapter by Pub. L. 114–1. See section 6753 of this title. § 6756. Powers In addition to all the powers conferred upon a nonprofit corporation by the District of Colum- bia Nonprofit Corporation Act, the Association shall have the power to— (1) establish and collect such membership fees as the Association finds necessary to im- pose to cover the costs of its operations; (2) adopt, amend, and repeal bylaws, proce- dures, or standards governing the conduct of Association business and performance of its duties; (3) establish procedures for providing notice and opportunity for comment pursuant to sec- tion 6755(a) of this title; (4) enter into and perform such agreements as necessary to carry out the duties of the As- sociation; (5) hire employees, professionals, or special- ists, and elect or appoint officers, and to fix their compensation, define their duties and give them appropriate authority to carry out the purposes of this subchapter, and determine their qualification; (6) establish personnel policies of the Asso- ciation and programs relating to, among other things, conflicts of interest, rates of com- pensation, where applicable, and qualifications of personnel; (7) borrow money; and (8) secure funding for such amounts as the Association determines to be necessary and appropriate to organize and begin operations of the Association, which shall be treated as loans to be repaid by the Association with in- terest at market rate. (Pub. L. 106–102, title III, § 326, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 24.) Editorial Notes REFERENCES IN TEXT The District of Columbia Nonprofit Corporation Act, referred to in text, is Pub. L. 87–569, Aug. 6, 1962, 76 Stat. 265, which is not classified to the Code. PRIOR PROVISIONS A prior section 6756, Pub. L. 106–102, title III, § 326, Nov. 12, 1999, 113 Stat. 1426, related to board of direc- tors, prior to the general amendment of this subchapter by Pub. L. 114–1. See section 6754 of this title. § 6757. Report by the Association (a) In general As soon as practicable after the close of each fiscal year, the Association shall submit to the President, through the Department of the Treas- ury, and the States (including State insurance regulators), and shall publish on the website of the Association, a written report regarding the conduct of its business, and the exercise of the other rights and powers granted by this sub- chapter, during such fiscal year. (b) Financial statements Each report submitted under subsection (a) with respect to any fiscal year shall include au- dited financial statements setting forth the fi- nancial 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. (Pub. L. 106–102, title III, § 327, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 24.) Editorial Notes PRIOR PROVISIONS Provisions similar to this section were contained in section 6762(c) of this title, prior to the general amend- ment of this subchapter by Pub. L. 114–1. A prior section 6757, Pub. L. 106–102, title III, § 327, Nov. 12, 1999, 113 Stat. 1427, related to officers of the As- sociation, prior to the general amendment of this sub- chapter by Pub. L. 114–1. § 6758. Liability of the Association and the Board members, officers, and employees of the As- sociation (a) In general The Association shall not be deemed to be an insurer or insurance producer within the mean- ing of any State law, rule, regulation, or order regulating or taxing insurers, insurance pro- ducers, or other entities engaged in the business of insurance, including provisions imposing pre- mium taxes, regulating insurer solvency or fi- nancial condition, establishing guaranty funds and levying assessments, or requiring claims settlement practices. (b) Liability of Board members, officers, and em- ployees No Board member, officer, or employee of the Association shall be personally liable to any person for any action taken or omitted in good faith in any matter within the scope of their re- sponsibilities in connection with the Associa- tion. (Pub. L. 106–102, title III, § 328, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 25.) Page 2287 TITLE 15—COMMERCE AND TRADE § 6760 Editorial Notes PRIOR PROVISIONS Provisions similar to this section were contained in section 6761 of this title, prior to the general amend- ment of this subchapter by Pub. L. 114–1. A prior section 6758, Pub. L. 106–102, title III, § 328, Nov. 12, 1999, 113 Stat. 1427, related to bylaws, rules, and disciplinary action, prior to the general amendment of this subchapter by Pub. L. 114–1. See section 6755 of this title. § 6759. Presidential oversight (a) Removal of Board If the President determines that the Associa- tion is acting in a manner contrary to the inter- ests of the public or the purposes of this sub- chapter or has failed to perform its duties under this subchapter, the President may remove the entire existing Board for the remainder of the term to which the Board members were ap- pointed and appoint, in accordance with section 6754 of this title and with the advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, new Board members to fill the vacancies on the Board for the remainder of the terms. (b) Removal of Board member The President may remove a Board member only for neglect of duty or malfeasance in office. (c) Suspension of bylaws and standards and pro- hibition of actions Following notice to the Board, the President, or a person designated by the President for such purpose, may suspend the effectiveness of any bylaw or standard, or prohibit any action, of the Association that the President or the designee determines is contrary to the purposes of this subchapter. (Pub. L. 106–102, title III, § 329, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 25.) Editorial Notes REFERENCES IN TEXT Senate Resolution 116 of the 112th Congress, referred to in subsec. (a), which was agreed to June 29, 2011, pro- vided for expedited Senate consideration of certain nominations subject to advice and consent. PRIOR PROVISIONS Provisions similar to this section were contained in section 6762(b)(2)(C) of this title, prior to the general amendment of this subchapter by Pub. L. 114–1. A prior section 6759, Pub. L. 106–102, title III, § 329, Nov. 12, 1999, 113 Stat. 1430, related to assessments, prior to the general amendment of this subchapter by Pub. L. 114–1. See section 6756(1) of this title. § 6760. Relationship to State law (a) Preemption of State laws State laws, regulations, provisions, or other actions purporting to regulate insurance pro- ducers shall be preempted to the extent provided in subsection (b). (b) Prohibited actions (1) In general No State shall— (A) impede the activities of, take any ac- tion against, or apply any provision of law or regulation arbitrarily or discriminatorily to, any insurance producer because that in- surance producer or any affiliate plans to be- come, has applied to become, or is a member of the Association; (B) impose any requirement upon a mem- ber of the Association that it pay fees dif- ferent from those required to be paid to that State were it not a member of the Associa- tion; or (C) impose any continuing education re- quirements on any nonresident insurance producer that is a member of the Associa- tion. (2) States other than a home State No State, other than the home State of a member of the Association, shall— (A) impose any licensing, personal or cor- porate qualifications, education, training, experience, residency, continuing education, or bonding requirement upon a member of the Association that is different from the criteria for membership in the Association or renewal of such membership; (B) impose any requirement upon a mem- ber of the Association that it be licensed, registered, or otherwise qualified to do busi- ness or remain in good standing in the State, including any requirement that the insur- ance producer register as a foreign company with the secretary of state or equivalent State official; (C) require that a member of the Associa- tion submit to a criminal history record check as a condition of doing business in the State; or (D) impose any licensing, registration, or appointment requirements upon a member of the Association, or require a member of the Association to be authorized to operate as an insurance producer, in order to sell, so- licit, or negotiate insurance for commercial property and casualty risks to an insured with risks located in more than one State, if the member is licensed or otherwise author- ized to operate in the State where the in- sured maintains its principal place of busi- ness and the contract of insurance insures risks located in that State. (3) Preservation of State disciplinary authority Nothing in this section may be construed to prohibit a State from investigating and taking appropriate disciplinary action, including sus- pension or revocation of authority of an insur- ance producer to do business in a State, in ac- cordance with State law and that is not incon- sistent with the provisions of this section, against a member of the Association as a re- sult of a complaint or for any alleged activity, regardless of whether the activity occurred be- fore or after the insurance producer com- menced doing business in the State pursuant to Association membership. (Pub. L. 106–102, title III, § 330, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 25.)