#aacth ,,congress  #b;d ,session  ,s4   
#aibf  ,,an ,,act  ,to delay the        
implementation of certain provisions of 
the ,biggert-,waters ,flood ,insurance  
,reform ,act of #bjab and to reform the 
,national ,association of ,registered   
,agents and ,brokers1 and for other     
purposes4  #a4 ,table of contents ,the  
table of contents for this ,act is as   
follows3 ,sec4 #a4 ,table of            
contents4,,title ,i--,homeowner ,flood  
,insurance ,affordability ,act,sec4     
#aja4 ,short title4,sec4 #ajb4          
,definitions4,sec4 #ajc4 ,delayed       
implementation of flood insurance rate  
increases2 draft affordability          
framework4,sec4 #ajd4 ,affordability    
study and report4,sec4 #aje4            
,affordability study funding4,sec4 #ajf4
 ,funds to reimburse homeowners for     
successful map appeals4,sec4 #ajg4      
,flood protection systems4,sec4 #ajh4   
,treatment of floodproofed residential  
basements4,sec4 #aji4 ,designation of   
flood insurance advocate4,sec4 #aaj4    

,exceptions to escrow requirement for   
flood insurance payments4,sec4 #aaa4    
,monthly installment payments for       
premiums4,sec4 #aab4 ,accounting for    
flood mitigation activities in estimates
 of premium rates4,sec4 #aac4 ,home     
improvement fairness4,sec4 #aad4 ,study 
of voluntary community-based flood      
insurance options4,sec4 #aae4 ,exemption
 from fees for certain map change       
requests4,sec4 #aaf4 ,flood mitigation  
methods for urban buildings4,,title     
,,ii--,national ,association of         
,registered ,agents and ,brokers,sec4   
#bja4 ,short ,title4,sec4 #bjb4         
,reestablishment of the ,national       
,association of ,registered ,agents and 
,brokers4  ,i ,homeowner ,flood         
,insurance ,affordability ,act  #aja4   
,short title ,this title may be cited as
 the ,homeowner ,flood ,insurance       
,affordability ,act of #bjad4  #ajb4    
,definitions ,as used in this title1 the
 following definitions shall apply3 7#a7
 ,adjusted base flood elevation ,for    

purposes of rating a floodproofed       
covered structure1 the term adjusted    
base flood elevation means the base     
flood elevation for a covered structure 
on the applicable effective flood       
insurance rate map1 plus #a foot4  7#b7 
,administrator ,the term ,administrator 
means the ,administrator of the ,federal
 ,emergency ,management ,agency4  7#c7  
,affordability study ,the term          
affordability study means the study     
required under section #ajjbcf of the   
,biggert-,waters ,flood ,insurance      
,reform ,act of #bjab 7,public ,law     
#aab-ada2 #abf ,stat4 #ieg74  7#d7      
,applicable flood plain management      
measures ,the term applicable flood     
plain management measures means flood   
plain management measures adopted by a  
community under section #fj4c7;c7 of    
title #dd1 ,code of ,federal            
,regulations4  7#e7 ,covered structure  
,the term covered structure means a     
residential structure-- 7,a7 that is    
located in a community that has adopted 

flood plain management measures that are
 approved by the ,federal ,emergency    
,management ,agency and that satisfy the
 requirements for an exception for      
floodproofed residential basements under
 section #fj4f7;c7 of title #dd1 ,code  
of ,federal ,regulations2 and  7,b7 that
 was built in compliance with the       
applicable flood plain management       
measures4  7#f7 ,draft affordability    
framework ,the term draft affordability 
framework means the draft programmatic  
and regulatory framework required to be 
prepared by the ,administrator and      
submitted to ,congress under section    
#ajc7;d7 addressing the issues of       
affordability of flood insurance sold   
under the ,national ,flood ,insurance   
,program1 including issues identified in
 the affordability study4  7#g7         
,floodproofed elevation ,the term       
floodproofed elevation means the height 
of floodproofing on a covered structure1
 as identified on the ,residential      
,basement ,floodproofing ,certificate   

for the covered structure4  7#h7        
,national ,flood ,insurance ,program    
,the term ,national ,flood ,insurance   
,program means the program established  
under the ,national ,flood ,insurance   
,act of #aifh 7#db ,u4,s4,c4 #djja et   
seq474  #ajc4 ,delayed implementation of
 flood insurance rate increases2 draft  
affordability framework  7a7 ,delayed   
implementation of flood insurance rate  
increases  7#a7 ,grandfathered          
properties ,beginning on the date of    
enactment of this ,act1 the             
,administrator may not implement section
 #acjh7;h7 of the ,national ,flood      
,insurance ,act of #aifh 7#db ,u4,s4,c4 
#djae7;h774  7#b7 ,pre-firm properties  
,beginning on the date of enactment of  
this ,act1 the ,administrator may not   
implement-- 7,a7 section #acjg7;g77#a7  
of the ,national ,flood ,insurance ,act 
of #aifh 7#db ,u4,s4,c4 #djad7;g77#a772 
or  7,b7 section #acjg7;g77#c7 of the   
,national ,flood ,insurance ,act of     
#aifh 7#db ,u4,s4,c4 #djad7;g77#c77 with

 respect to any policy described in that
 section1 provided that the decision of 
the policy holder to permit a lapse in  
flood insurance coverage was as a result
 of the property covered by the policy  
no longer being required to retain such 
coverage4  7#c7 ,expiration ,the        
prohibitions set forth under paragraphs 
7#a7 and 7#b7 shall expire #f months    
after the later of-- 7,a7 the date on   
which the ,administrator proposes the   
draft affordability framework2 or  7,b7 
the date on which the ,administrator    
certifies in writing to ,congress that  
the ,federal ,emergency ,management     
,agency has implemented a flood mapping 
approach that1 when applied1 results in 
technically credible flood hazard data  
in all areas where ,flood ,insurance    
,rate ,maps are prepared or updated4    
7b7 ,property sale trigger  7#a7 ,in    
general ,section #acjg7;g77#b7 of the   
,national ,flood ,insurance ,act of     
#aifh 7#db ,u4,s4,c4 #djad7;g77#b77 is  
amended to read as follows3  7#b7 any   

property purchased after the expiration 
of the #f-month period set forth under  
section #ajc7;a77#c7 of the ,homeowner  
,flood ,insurance ,affordability ,act of
 #bjad2  4  7#b7 ,protection of subsidy 
for properties purchased on or before   
expiration date ,notwithstanding        
paragraph 7#a7 or 7#c7 of section       
#acjg7;g7 of the ,national ,flood       
,insurance ,act of #aifh 7#db ,u4,s4,c4 
#djad7;g77#a7 and 7#c771 the            
,administrator may not reduce the risk  
premium rate subsidy for flood insurance
 for a property purchased on or before  
the expiration of the #f-month period   
set forth under subsection 7a77#c7 of   
this section based on the fact that--   
7,a7 the property was not insured by the
 flood insurance program as of the date 
of enactment of the ,biggert-,waters    
,flood ,insurance ,reform ,act of #bjab 
7,public ,law #aab-ada2 #abf ,stat4     
#iaf72 or  7,b7 on or before the        
expiration of that #f-month period1 the 
policy for the property had lapsed in   

coverage as a result of the deliberate  
choice of the policy holder1 provided   
that the decision of the policy holder  
to permit a lapse in coverage was as a  
result of the property no longer being  
required to retain such coverage4  7c7  
,treatment of pre-,,firm properties     
,beginning on the date of enactment of  
this ,act and ending upon the expiration
 of the #f-month period set forth under 
subsection 7a77#c71 the ,administrator  
shall restore the risk premium rate     
subsidies for flood insurance estimated 
under section #acjg7;a77#b7 of the      
,national ,flood ,insurance ,act of     
#aifh 7#db ,u4,s4,c4 #djad7;a77#b77 for 
any property-- 7#a7 with respect to     
which the ,administrator may not1 under 
subsection 7a77#b77;,a7 of this section1
 implement section #acjg7;g77#a7 of the 
,national ,flood ,insurance ,act of     
#aifh2  7#b7 with respect to which the  
,administrator may not1 under subsection
 7a77#b77;,b7 of this section1 implement
 section #acjg7;g77#c7 of the ,national 

,flood ,insurance ,act of #aifh2 or     
7#c7 described in section #acjg7;g77#b7 
of the ,national ,flood ,insurance ,act 
of #aifh 7#db ,u4,s4,c4 #djad7;g77#b771 
as in effect on the day before the date 
of enactment of this ,act4  7d7 ,draft  
affordability framework  7#a7 ,in       
general ,the ,administrator shall       
prepare a draft affordability framework 
that proposes to address1 via           
programmatic and regulatory changes1 the
 issues of affordability of flood       
insurance sold under the ,national      
,flood ,insurance ,program1 including   
issues identified in the affordability  
study4  7#b7 ,criteria ,in carrying out 
the requirements under paragraph 7#a71  
the ,administrator shall consider the   
following criteria3 7,a7 ,accurate      
communication to consumers of the flood 
risk associated with their property4    
7,b7 ,targeted assistance to flood      
insurance policy holders based on their 
financial ability to continue to        
participate in the ,national ,flood     

,insurance ,program4  7,c7 ,individual  
or community actions to mitigate the    
risk of flood or lower the cost of flood
 insurance4  7,d7 ,the impact of        
increases in risk premium rates on      
participation in the ,national ,flood   
,insurance ,program4  7,e7 ,the impact  
flood insurance rate map updates have on
 the affordability of flood insurance4  
7#c7 ,deadline for submission ,not later
 than #ah months after the date on which
 the ,administrator submits the         
affordability study1 the ,administrator 
shall submit to the full ,committee on  
,banking1 ,housing1 and ,urban ,affairs 
and the full ,committee on              
,appropriations of the ,senate and the  
full ,committee on ,financial ,services 
and the full ,committee on              
,appropriations of the ,house of        
,representatives the draft affordability
 framework4  7e7 ,interagency agreements
 ,the ,administrator may enter into an  
agreement with another ,federal agency  
to-- 7#a7 complete the affordability    

study2 or  7#b7 prepare the draft       
affordability framework4  7f7 ,clear    
communications ,the ,administrator shall
 clearly communicate full flood risk    
determinations to individual property   
owners regardless of whether their      
premium rates are full actuarial rates4 
7g7 ,rule of construction ,nothing in   
this section shall be construed to      
provide the ,administrator with the     
authority to provide assistance to      
homeowners based on affordability that  
was not available prior to the enactment
 of the ,biggert-,waters ,flood         
,insurance ,reform ,act of #bjab        
7,public ,law #aab-ada2 #abf ,stat4     
#iaf74  7h7 ,disclosure  7#a7 ,change in
 rates under ,biggert-,waters ,not later
 than the date that is #f months before 
the date on which any change in risk    
premium rates for flood insurance       
coverage under the ,national ,flood     
,insurance ,program resulting from the  
amendment made by section #ajjbjg of the
 ,biggert-,waters ,flood ,insurance     

,reform ,act of #bjab 7,public ,law     
#aab-ada2 #abf ,stat4 #iai7 is          
implemented1 the ,administrator shall   
make publicly available the rate tables 
and underwriting guidelines that provide
 the basis for the change4  7#b7 ,change
 in rates under this ,act ,not later    
than the date that is #f months before  
the date on which any change in risk    
premium rates for flood insurance       
coverage under the ,national ,flood     
,insurance ,program resulting from this 
,act or any amendment made by this ,act 
is implemented1 the ,administrator shall
 make publicly available the rate tables
 and underwriting guidelines that       
provide the basis for the change4  7#c7 
,report on policy and claims data  7,a7 
,in general ,not later than #ij days    
after the date of enactment of this     
,act1 the ,administrator shall submit to
 ,congress a report on the feasibility  
of-- 7i7 releasing property-level policy
 and claims data for flood insurance    
coverage under the ,national ,flood     

,insurance ,program2 and  7ii7          
establishing guidelines for releasing   
property-level policy and claims data   
for flood insurance coverage under the  
,national ,flood ,insurance ,program in 
accordance with section #eeb;a of title 
#e1 ,united ,states ,code 7commonly     
known as the ,privacy ,act of #aigd74   
7,b7 ,contents ,the report submitted    
under subparagraph 7,a7 shall include-- 
7i7 an analysis and assessment of how   
releasing property-level policy and     
claims data for flood insurance coverage
 under the ,national ,flood ,insurance  
,program will aid policy holders and    
insurers to understand how the          
,administration determines actuarial    
premium rates and assesses flood risks2 
and  7ii7 recommendations for protecting
 personal information in accordance with
 section #eeb;a of title #e1 ,united    
,states ,code 7commonly known as the    
,privacy ,act of #aigd74  #ajd4         
,affordability study and report         
,notwithstanding the deadline under     

section #ajjbcf7;c7 of the              
,biggert-,waters ,flood ,insurance      
,reform ,act of #bjab 7,public ,law     
#aab-ada2 #abf ,stat4 #ieg71 not later  
than #b years after the date of         
enactment of this ,act1 the             
,administrator shall submit to the full 
,committee on ,banking1 ,housing1 and   
,urban ,affairs and the full ,committee 
on ,appropriations of the ,senate and   
the full ,committee on ,financial       
,services and the full ,committee on    
,appropriations of the ,house of        
,representatives the affordability study
 and report required under such section4
  #aje4 ,affordability study funding    
,section #ajjbcf7;d7 of the             
,biggert-,waters ,flood ,insurance      
,reform ,act of #bjab 7,public ,law     
#aab-ada2 #abf ,stat4 #ieg7 is amended  
by striking not more than #gej1jjj and  
inserting such amounts as may be        
necessary4  #ajf4 ,funds to reimburse   
homeowners for successful map appeals   
7a7 ,in general ,section #acfc7;f7 of   

the ,national ,flood ,insurance ,act of 
#aifh 7#db ,u4,s4,c4 #dajd7;f77 is      
amended-- 7#a7 in the first sentence1 by
 inserting after as the case may be1 the
 following3 or1 in the case of an appeal
 that is resolved by submission of      
conflicting data to the ,scientific     
,resolution ,panel provided for in      
section #acfc;,a1 the community12 and   
7#b7 by striking the second sentence and
 inserting the following3 ,the          
,administrator may use such amounts from
 the ,national ,flood ,insurance ,fund  
established under section #acaj as may  
be necessary to carry out this          
subsection44  7b7 ,conforming amendment 
,section #acaj7;a7 of the ,national     
,flood ,insurance ,act of #aifh 7#db    
,u4,s4,c4 #djag7;a77 is amended-- 7#a7  
in paragraph 7#f71 by striking and at   
the end2  7#b7 in paragraph 7#g71 by    
striking the period at the end and      
inserting 2 and2 and  7#c7 by adding at 
the end the following3  7#h7 for        
carrying out section #acfc7;f74  4      

#ajg4 ,flood protection systems  7a7    
,adequate progress on construction of   
flood protection systems ,section       
#acjg7;e7 of the ,national ,flood       
,insurance ,act of #aifh 7#db ,u4,s4,c4 
#djad7;e77 is amended-- 7#a7 in the     
first sentence1 by inserting or         
reconstruction after construction2  7#b7
 by striking the second sentence and    
inserting the following3 ,the           
,administrator shall find that adequate 
progress on the construction or         
reconstruction of a flood protection    
system1 based on the present value of   
the completed flood protection system1  
has been made only if 7#a7 #ajj percent 
of the cost of the system has been      
authorized1 7#b7 at least #fj percent of
 the cost of the system has been        
appropriated1 7#c7 at least #ej percent 
of the cost of the system has been      
expended1 and 7#d7 the system is at     
least #ej percent completed42 and  7#c7 
by adding at the end the following3     
,notwithstanding any other provision of 

law1 in determining whether a community 
has made adequate progress on the       
construction1 reconstruction1 or        
improvement of a flood protection       
system1 the ,administrator shall        
consider all sources of funding1        
including ,federal1 ,state1 and local   
funds44  7b7 ,communities restoring     
disaccredited flood protection systems  
,section #acjg7;f7 of the ,national     
,flood ,insurance ,act of #aifh 7#db    
,u4,s4,c4 #djad7;f77 is amended by      
striking the first sentence and         
inserting the following3                
,notwithstanding any other provision of 
law1 this subsection shall apply to     
riverine and coastal levees that are    
located in a community which has been   
determined by the ,administrator of the 
,federal ,emergency ,management ,agency 
to be in the process of restoring flood 
protection afforded by a flood          
protection system that had been         
previously accredited on a ,flood       
,insurance ,rate ,map as providing      

#ajj-year frequency flood protection but
 no longer does so1 and shall apply     
without regard to the level of ,federal 
funding of or participation in the      
construction1 reconstruction1 or        
improvement of the flood protection     
system44  #ajh4 ,treatment of           
floodproofed residential basements ,in  
implementing section #acjh7;h7 of the   
,national ,flood ,insurance ,act of     
#aifh 7#db ,u4,s4,c4 #djae7;h771 the    
,administrator shall rate a covered     
structure using the elevation difference
 between the floodproofed elevation of  
the covered structure and the adjusted  
base flood elevation of the covered     
structure4  #aji4 ,designation of flood 
insurance advocate  7a7 ,in general ,the
 ,administrator shall designate a ,flood
 ,insurance ,advocate to advocate for   
the fair treatment of policy holders    
under the ,national ,flood ,insurance   
,program and property owners in the     
mapping of flood hazards1 the           
identification of risks from flood1 and 

the implementation of measures to       
minimize the risk of flood4  7b7 ,duties
 and responsibilities ,the duties and   
responsibilities of the ,flood          
,insurance ,advocate designated under   
subsection 7a7 shall be to-- 7#a7       
educate property owners and             
policyholders under the ,national ,flood
 ,insurance ,program on-- 7,a7          
individual flood risks2  7,b7 flood     
mitigation2  7,c7 measures to reduce    
flood insurance rates through effective 
mitigation2 and  7,d7 the flood         
insurance rate map review and amendment 
process2  7#b7 assist policy holders    
under the ,national ,flood ,insurance   
,program and property owners to         
understand the procedural requirements  
related to appealing preliminary flood  
insurance rate maps and implementing    
measures to mitigate evolving flood     
risks2  7#c7 assist in the development  
of regional capacity to respond to      
individual constituent concerns about   
flood insurance rate map amendments and 

revisions2  7#d7 coordinate outreach and
 education with local officials and     
community leaders in areas impacted by  
proposed flood insurance rate map       
amendments and revisions2 and  7#e7 aid 
potential policy holders under the      
,national ,flood ,insurance ,program in 
obtaining and verifying accurate and    
reliable flood insurance rate           
information when purchasing or renewing 
a flood insurance policy4  7c7          
,authorization of appropriations ,there 
are authorized to be appropriated for   
each fiscal year such sums as may be    
necessary to carry out the duties and   
responsibilities of the ,flood          
,insurance ,advocate4  #aaj4 ,exceptions
 to escrow requirement for flood        
insurance payments  7a7 ,in general     
,section #ajb7;d77#a7 of the ,flood     
,disaster ,protection ,act of #aigc 7#db
 ,u4,s4,c4 #djab;a7d77#a77 is amended-- 
7#a7 in subparagraph 7,a71 in the second
 sentence1 by striking subparagraph 7,c7
 and inserting subparagraph 7,b72 and   

7#b7 in subparagraph 7,b7-- 7,a7 in     
clause 7ii71 by redesignating subclauses
 7,i7 and 7,,ii7 as items 7aa7 and 7bb71
 respectively1 and adjusting the margins
 accordingly2  7,b7 by redesignating    
clauses 7i7 and 7ii7 as subclauses 7,i7 
and 7,,ii71 respectively1 and adjusting 
the margins accordingly2  7,c7 in the   
matter preceding subclause 7,i71 as     
redesignated by subparagraph 7,b71 by   
striking 7,a7 or 7,b71 if-- and         
inserting the following3 87,a7--  7i7   
if--  2  7,d7 by striking the period at 
the end and inserting 2 or2 and  7,e7 by
 adding at the end the following  7ii7  
in the case of a loan that-- 7,i7 is in 
a junior or subordinate position to a   
senior lien secured by the same         
residential improved real estate or     
mobile home for which flood insurance is
 being provided at the time of the      
origination of the loan2  7,,ii7 is     
secured by residential improved real    
estate or a mobile home that is part of 
a condominium1 cooperative1 or other    

project development1 if the residential 
improved real estate or mobile home is  
covered by a flood insurance policy     
that-- 7aa7 meets the requirements that 
the regulated lending institution is    
required to enforce under subsection    
7b77#a72  7bb7 is provided by the       
condominium association1 cooperative1   
homeowners association1 or other        
applicable group2 and  7cc7 the premium 
for which is paid by the condominium    
association1 cooperative1 homeowners    
association1 or other applicable group  
as a common expense2  7,,iii7 is secured
 by residential improved real estate or 
a mobile home that is used as collateral
 for a business purpose2  7,,iv7 is a   
home equity line of credit2  7,v7 is a  
nonperforming loan2 or  7,,vi7 has a    
term of not longer than #ab months4  4  
7b7 ,applicability  7#a7 ,in general    
7,a7 ,required application ,the         
amendments to section #ajb7;d77#a7 of   
the ,flood ,disaster ,protection ,act of
 #aigc 7#db ,u4,s4,c4 #djab;a7d77#a77   

made by section #ajjbji7;a7 of the      
,biggert-,waters ,flood ,insurance      
,reform ,act of #bjab 7,public ,law     
#aab-ada2 #abf ,stat4 #ibj7 and by      
subsection 7a7 of this section shall    
apply to any loan that is originated1   
refinanced1 increased1 extended1 or     
renewed on or after ,january #a1 #bjaf4 
7,b7 ,optional application  7i7         
,definitions ,in this subparagraph--    
7,i7 the terms ,federal entity for      
lending regulation1 improved real       
estate1 regulated lending institution1  
and servicer have the meanings given the
 terms in section #c of the ,flood      
,disaster ,protection ,act of #aigc 7#db
 ,u4,s4,c4 #djjc72  7,,ii7 the term     
outstanding loan means a loan that--    
7aa7 is outstanding as of ,january #a1  
#bjaf2  7bb7 is not subject to the      
requirement to escrow premiums and fees 
for flood insurance under section       
#ajb7;d77#a7 of the ,flood ,disaster    
,protection ,act of #aigc 7#db ,u4,s4,c4
 #djab;a7d77#a77 as in effect on ,july  

#e1 #bjab2 and  7cc7 would1 if the loan 
had been originated1 refinanced1        
increased1 extended1 or renewed on or   
after ,january #a1 #bjaf1 be subject to 
the requirements under section          
#ajb7;d77#a77;,a7 of the ,flood         
,disaster ,protection ,act of #aigc1 as 
amended2 and  7,,iii7 the term section  
#ajb7;d77#a77;,a7 of the ,flood         
,disaster ,protection ,act of #aigc1 as 
amended means section #ajb7;d77#a77;,a7 
of the ,flood ,disaster ,protection ,act
 of #aigc 7#db ,u4,s4,c4                
#djab;a7d77#a77;,a771 as amended by--   
7aa7 section #ajjbji7;a7 of the         
,biggert-,waters ,flood ,insurance      
,reform ,act of #bjab 7,public ,law     
#aab-ada2 #abf ,stat4 #ibj72 and  7bb7  
subsection 7a7 of this section4  7ii7   
,option to escrow flood insurance       
payments ,each ,federal entity for      
lending regulation 7after consultation  
and coordination with the ,federal      
,financial ,institutions ,examination   
,council7 shall1 by regulation1 direct  

that each regulated lending institution 
or servicer of an outstanding loan shall
 offer and make available to a borrower 
the option to have the borrower's       
payment of premiums and fees for flood  
insurance under the ,national ,flood    
,insurance ,act of #aifh 7#db ,u4,s4,c4 
#djja et seq471 including the escrow of 
such payments1 be treated in the same   
manner provided under section           
#ajb7;d77#a77;,a7 of the ,flood         
,disaster ,protection ,act of #aigc1 as 
amended4  7#b7 ,repeal of #b-year delay 
on applicability ,subsection 7b7 of     
section #ajjbji of the ,biggert-,waters 
,flood ,insurance ,reform ,act of #bjab 
7,public ,law #aab-ada2 #abf ,stat4     
#ibj7 is repealed4  7#c7 ,rule of       
construction ,nothing in this section or
 the amendments made by this section    
shall be construed to supersede1 during 
the period beginning on ,july #f1 #bjab 
and ending on ,december #ca1 #bjae1 the 
requirements under section #ajb7;d77#a7 
of the ,flood ,disaster ,protection ,act

 of #aigc 7#db ,u4,s4,c4                
#djab;a7d77#a771 as in effect on ,july  
#e1 #bjab4  #aaa4 ,monthly installment  
payments for premiums ,section #acjh7;g7
 of the ,national ,flood ,insurance ,act
 of #aifh 7#db ,u4,s4,c4 #djae7;g77 is  
amended by striking either annually or  
in more frequent installments and       
inserting annually1 monthly1 or in other
 installments that are more frequent    
than annually4  #aab4 ,accounting for   
flood mitigation activities in estimates
 of premium rates ,section #acjg7;a77#a7
 of the ,national ,flood ,insurance ,act
 of #aifh 7#db ,u4,s4,c4 #djad7;a77#a77 
is amended by amending subparagraph 7,a7
 to read as follows3  7,a7 based on     
consideration of-- 7i7 the risk involved
 and accepted actuarial principles2 and 
7ii7 the flood mitigation activities    
that an owner or lessee has undertaken  
on a property1 including differences in 
the risk involved due to land use       
measures1 floodproofing1 flood          
forecasting1 and similar measures1  4   

#aac4 ,home improvement fairness        
,section #acjg7;a77#b77;,e77ii7 of the  
,national ,flood ,insurance ,act of     
#aifh 7#db ,u4,s4,c4                    
#djad7;a77#b77;,e77ii77 is amended by   
striking #cj percent and inserting #ej  
percent4  #aad4 ,study of voluntary     
community-based flood insurance options 
7a7 ,study  7#a7 ,study required ,the   
,administrator shall conduct a study to 
assess options1 methods1 and strategies 
for making available voluntary          
community-based flood insurance policies
 through the ,national ,flood ,insurance
 ,program4  7#b7 ,considerations ,the   
study conducted under paragraph 7#a7    
shall-- 7,a7 take into consideration and
 analyze how voluntary community-based  
flood insurance policies-- 7i7 would    
affect communities having varying       
economic bases1 geographic locations1   
flood hazard characteristics or         
classifications1 and flood management   
approaches2 and  7ii7 could satisfy the 
applicable requirements under section   

#ajb of the ,flood ,disaster ,protection
 ,act of #aigc 7#db ,u4,s4,c4 #djab;a72 
and  7,b7 evaluate the advisability of  
making available voluntary              
community-based flood insurance policies
 to communities1 subdivisions of        
communities1 and areas of residual risk4
  7#c7 ,consultation ,in conducting the 
study required under paragraph 7#a71 the
 ,administrator may consult with the    
,comptroller ,general of the ,united    
,states1 as the ,administrator          
determines is appropriate4  7b7 ,report 
by the ,administrator  7#a7 ,report     
required ,not later than #ah months     
after the date of enactment of this     
,act1 the ,administrator shall submit to
 the ,committee on ,banking1 ,housing1  
and ,urban ,affairs of the ,senate and  
the ,committee on ,financial ,services  
of the ,house of ,representatives a     
report that contains the results and    
conclusions of the study conducted under
 subsection 7a74  7#b7 ,contents ,the   
report submitted under paragraph 7#a7   

shall include recommendations for-- 7,a7
 the best manner to incorporate         
voluntary community-based flood         
insurance policies into the ,national   
,flood ,insurance ,program2 and  7,b7 a 
strategy to implement voluntary         
community-based flood insurance policies
 that would encourage communities to    
undertake flood mitigation activities1  
including the construction1             
reconstruction1 or improvement of       
levees1 dams1 or other flood control    
structures4  7c7 ,report by ,comptroller
 ,general ,not later than #f months     
after the date on which the             
,administrator submits the report       
required under subsection 7b71 the      
,comptroller ,general of the ,united    
,states shall-- 7#a7 review the report  
submitted by the ,administrator2 and    
7#b7 submit to the ,committee on        
,banking1 ,housing1 and ,urban ,affairs 
of the ,senate and the ,committee on    
,financial ,services of the ,house of   
,representatives a report that          

contains-- 7,a7 an analysis of the      
report submitted by the ,administrator2 
7,b7 any comments or recommendations of 
the ,comptroller ,general relating to   
the report submitted by the             
,administrator2 and  7,c7 any other     
recommendations of the ,comptroller     
,general relating to community-based    
flood insurance policies4  #aae4        
,exemption from fees for certain map    
change requests ,notwithstanding any    
other provision of law1 a requester     
shall be exempt from submitting a review
 or processing fee for a request for a  
flood insurance rate map change based on
 a habitat restoration project that is  
funded in whole or in part with ,federal
 or ,state funds1 including dam removal1
 culvert redesign or installation1 or   
the installation of fish passage4  #aaf4
 ,flood mitigation methods for urban    
buildings  7a7 ,in general ,not later   
than #a year after the date of enactment
 of this ,act1 the ,administrator shall 
issue guidelines for property owners    

that-- 7#a7 provide alternative methods 
of mitigation1 other than building      
elevation1 to reduce flood risk to urban
 residential buildings that cannot be   
elevated due to their structural        
characteristics1 including-- 7,a7 types 
of building materials2 and  7,b7 types  
of floodproofing2 and  7#b7 inform      
property owners about how the           
implementation of mitigation methods    
described in paragraph 7#a7 may affect  
risk premium rates for flood insurance  
coverage under the ,national ,flood     
,insurance ,program4  7b7 ,calculation  
of risk premium rates ,in calculating   
the risk premium rate charged for flood 
insurance for a property under section  
#acjh of the ,national ,flood ,insurance
 ,act of #aifh 7#db ,u4,s4,c4 #djae71   
the ,administrator shall take into      
account the implementation of any       
mitigation method identified by the     
,administrator in the guidance issued   
under subsection 7a7 of this section4   
,,ii ,national ,association of          

,registered ,agents and ,brokers  #bja4 
,short ,title ,this title may be cited  
as the ,national ,association of        
,registered ,agents and ,brokers ,reform
 ,act of #bjad4  #bjb4 ,reestablishment 
of the ,national ,association of        
,registered ,agents and ,brokers  7a7   
,in general ,subtitle ,c of title ,,iii 
of the ,gramm-,leach-,bliley ,act 7#ae  
,u4,s4,c4 #fgea et seq47 is amended to  
read as follows3  ,c ,national          
,association of ,registered ,agents and 
,brokers  #cba4 ,national ,association  
of ,registered ,agents and ,brokers  7a7
 ,establishment ,there is established   
the ,national ,association of           
,registered ,agents and ,brokers        
7referred to in this subtitle as the    
,association74  7b7 ,status ,the        
,association shall-- 7#a7 be a nonprofit
 corporation2  7#b7 not be an agent or  
instrumentality of the ,federal         
,government2  7#c7 be an independent    
organization that may not be merged with
 or into any other private or public    

entity2 and  7#d7 except as otherwise   
provided in this subtitle1 be subject   
to1 and have all the powers conferred   
upon1 a nonprofit corporation by the    
,district of ,columbia ,nonprofit       
,corporation ,act 7,d4,c4 ,code1 sec4   
#bi-cja4ja et seq47 or any successor    
thereto4  #cbb4 ,purpose ,the purpose of
 the ,association shall be to provide a 
mechanism through which licensing1      
continuing education1 and other         
nonresident insurance producer          
qualification requirements and          
conditions may be adopted and applied on
 a multi-state basis without affecting  
the laws1 rules1 and regulations1 and   
preserving the rights of a ,state1      
pertaining to-- 7#a7 licensing1         
continuing education1 and other         
qualification requirements of insurance 
producers that are not members of the   
,association2  7#b7 resident or         
nonresident insurance producer          
appointment requirements2  7#c7         
supervising and disciplining resident   

and nonresident insurance producers2    
7#d7 establishing licensing fees for    
resident and nonresident insurance      
producers so that there is no loss of   
insurance producer licensing revenue to 
the ,state2 and  7#e7 prescribing and   
enforcing laws and regulations          
regulating the conduct of resident and  
nonresident insurance producers4  #cbc4 
,membership  7a7 ,eligibility  7#a7 ,in 
general ,any insurance producer licensed
 in its home ,state shall1 subject to   
paragraphs 7#b7 and 7#d71 be eligible to
 become a member of the ,association4   
7#b7 ,ineligibility for suspension or   
revocation of license ,subject to       
paragraph 7#c71 an insurance producer is
 not eligible to become a member of the 
,association if a ,state insurance      
regulator has suspended or revoked the  
insurance license of the insurance      
producer in that ,state4  7#c7          
,resumption of eligibility ,paragraph   
7#b7 shall cease to apply to any        
insurance producer if-- 7,a7 the ,state 

insurance regulator reissues or renews  
the license of the insurance producer in
 the ,state in which the license was    
suspended or revoked1 or otherwise      
terminates or vacates the suspension or 
revocation2 or  7,b7 the suspension or  
revocation expires or is subsequently   
overturned by a court of competent      
jurisdiction4  7#d7 ,criminal history   
record check required  7,a7 ,in general 
,an insurance producer who is an        
individual shall not be eligible to     
become a member of the ,association     
unless the insurance producer has       
undergone a criminal history record     
check that complies with regulations    
prescribed by the ,attorney ,general of 
the ,united ,states under subparagraph  
7,k74  7,b7 ,criminal history record    
check requested by home ,state ,an      
insurance producer who is licensed in a 
,state and who has undergone a criminal 
history record check during the #b-year 
period preceding the date of submission 
of an application to become a member of 

the ,association1 in compliance with a  
requirement to undergo such criminal    
history record check as a condition for 
such licensure in the ,state1 shall be  
deemed to have undergone a criminal     
history record check for purposes of    
subparagraph 7,a74  7,c7 ,criminal      
history record check requested by       
,association  7i7 ,in general ,the      
,association shall1 upon request by an  
insurance producer licensed in a ,state1
 submit identification information      
obtained from the insurance producer1   
and a request for a criminal history    
record check of the insurance producer1 
to the ,federal ,bureau of              
,investigation4  7ii7 ,procedures ,the  
board of directors of the ,association  
7referred to in this subtitle as the    
,board7 shall prescribe procedures for  
obtaining and utilizing identification  
information and criminal history record 
information1 including the establishment
 of reasonable fees required to perform 
a criminal history record check and     

appropriate safeguards for maintaining  
confidentiality and security of the     
information4  7,d7 ,form of request ,a  
submission under subparagraph 7,c77i7   
shall include such identification       
information as is required by the       
,attorney ,general concerning the person
 about whom the criminal history record 
check is requested1 and a statement     
signed by the person authorizing the    
,attorney ,general to provide the       
information to the ,association and for 
the ,association to receive the         
information4  7,e7 ,provision of        
information by ,attorney ,general ,upon 
receiving a submission under            
subparagraph 7,c77i7 from the           
,association1 the ,attorney ,general    
shall search all criminal history       
records of the ,federal ,bureau of      
,investigation1 including records of the
 ,criminal ,justice ,information        
,services ,division of the ,federal     
,bureau of ,investigation1 that the     
,attorney ,general determines           

appropriate for criminal history records
 corresponding to the identification    
information provided under subparagraph 
7,d7 and provide all criminal history   
record information included in the      
request to the ,association4  7,f7      
,limitation on permissible uses of      
information ,any information provided to
 the ,association under subparagraph    
7,e7 may only-- 7i7 be used for purposes
 of determining compliance with         
membership criteria established by the  
,association2  7ii7 be disclosed to     
,state insurance regulators1 or ,federal
 or ,state law enforcement agencies1 in 
conformance with applicable law2 or     
7iii7 be disclosed1 upon request1 to the
 insurance producer to whom the criminal
 history record information relates4    
7,g7 ,penalty for improper use or       
disclosure ,whoever knowingly uses any  
information provided under subparagraph 
7,e7 for a purpose not authorized in    
subparagraph 7,f71 or discloses any such
 information to anyone not authorized to

 receive it1 shall be fined under title 
#ah1 ,united ,states ,code1 imprisoned  
for not more than #b years1 or both4    
7,h7 ,reliance on information ,neither  
the ,association nor any of its ,board  
members1 officers1 or employees shall be
 liable in any action for using         
information provided under subparagraph 
7,e7 as permitted under subparagraph    
7,f7 in good faith and in reasonable    
reliance on its accuracy4  7,i7 ,fees   
,the ,attorney ,general may charge a    
reasonable fee for conducting the search
 and providing the information under    
subparagraph 7,e71 and any such fee     
shall be collected and remitted by the  
,association to the ,attorney ,general4 
7,j7 ,rule of construction ,nothing in  
this paragraph shall be construed as--  
7i7 requiring a ,state insurance        
regulator to perform criminal history   
record checks under this section2 or    
7ii7 limiting any other authority that  
allows access to criminal history       
records4  7,k7 ,regulations ,the        

,attorney ,general shall prescribe      
regulations to carry out this paragraph1
 which shall include-- 7i7 appropriate  
protections for ensuring the            
confidentiality of information provided 
under subparagraph 7,e72 and  7ii7      
procedures providing a reasonable       
opportunity for an insurance producer to
 contest the accuracy of information    
regarding the insurance producer        
provided under subparagraph 7,e74  7,l7 
,ineligibility for membership  7i7 ,in  
general ,the ,association may1 under    
reasonably consistently applied         
standards1 deny membership to an        
insurance producer on the basis of      
criminal history record information     
provided under subparagraph 7,e71 or    
where the insurance producer has been   
subject to disciplinary action1 as      
described in paragraph 7#b74  7ii7      
,rights of applicants denied membership 
,the ,association shall notify any      
insurance producer who is denied        
membership on the basis of criminal     

history record information provided     
under subparagraph 7,e7 of the right of 
the insurance producer to-- 7,i7 obtain 
a copy of all criminal history record   
information provided to the ,association
 under subparagraph 7,e7 with respect to
 the insurance producer2 and  7,,ii7    
challenge the denial of membership based
 on the accuracy and completeness of the
 information4  7,m7 ,definition ,for    
purposes of this paragraph1 the term    
criminal history record check means a   
national background check of criminal   
history records of the ,federal ,bureau 
of ,investigation4  7b7 ,authority ,to  
establish membership criteria ,the      
,association may establish membership   
criteria that bear a reasonable         
relationship to the purposes for which  
the ,association was established4  7c7  
,establishment of classes and categories
 of membership  7#a7 ,classes of        
membership ,the ,association may        
establish separate classes of           
membership1 with separate criteria1 if  

the ,association reasonably determines  
that performance of different duties    
requires different levels of education1 
training1 experience1 or other          
qualifications4  7#b7 ,business entities
 ,the ,association shall establish a    
class of membership and membership      
criteria for business entities4 ,a      
business entity that applies for        
membership shall be required to         
designate an individual ,association    
member responsible for the compliance of
 the business entity with ,association  
standards and the insurance laws1 rules1
 and regulations of any ,state in which 
the business entity seeks to do business
 on the basis of ,association           
membership4  7#c7 ,categories  7,a7     
,separate categories for insurance      
producers permitted ,the ,association   
may establish separate categories of    
membership for insurance producers and  
for other persons or entities within    
each class1 based on the types of       
licensing categories that exist under   

,state laws4  7,b7 ,separate treatment  
for depository institutions prohibited  
,no special categories of membership1   
and no distinct membership criteria1    
shall be established for members that   
are depository institutions or for      
employees1 agents1 or affiliates of     
depository institutions4  7d7           
,membership criteria  7#a7 ,in general  
,the ,association may establish criteria
 for membership which shall include     
standards for personal qualifications1  
education1 training1 and experience4    
,the ,association shall not establish   
criteria that unfairly limit the ability
 of a small insurance producer to become
 a member of the ,association1 including
 imposing discriminatory membership     
fees4  7#b7 ,qualifications ,in         
establishing criteria under paragraph   
7#a71 the ,association shall not adopt  
any qualification less protective to the
 public than that contained in the      
,national ,association of ,insurance    
,commissioners 7referred to in this     

subtitle as the ,,naic7 ,producer       
,licensing ,model ,act in effect as of  
the date of enactment of the ,national  
,association of ,registered ,agents and 
,brokers ,reform ,act of #bjad1 and     
shall consider the highest levels of    
insurance producer qualifications       
established under the licensing laws of 
the ,states4  7#c7 ,assistance from     
,states  7,a7 ,in general ,the          
,association may request a ,state to    
provide assistance in investigating and 
evaluating the eligibility of a         
prospective member for membership in the
 ,association4  7,b7 ,authorization of  
information sharing ,a submission under 
subsection 7a77#d77;,c77i7 made by an   
insurance producer licensed in a ,state 
shall include a statement signed by the 
person about whom the assistance is     
requested authorizing-- 7i7 the ,state  
to share information with the           
,association2 and  7ii7 the ,association
 to receive the information4  7,c7 ,rule
 of construction ,subparagraph 7,a7     

shall not be construed as requiring or  
authorizing any ,state to adopt new or  
additional requirements concerning the  
licensing or evaluation of insurance    
producers4  7#d7 ,denial of membership  
,the ,association may1 based on         
reasonably consistently applied         
standards1 deny membership to any       
,state-licensed insurance producer for  
failure to meet the membership criteria 
established by the ,association4  7e7   
,effect of membership  7#a7 ,authority  
of association members ,membership in   
the ,association shall-- 7,a7 authorize 
an insurance producer to sell1 solicit1 
or negotiate insurance in any ,state for
 which the member pays the licensing fee
 set by the ,state for any line or lines
 of insurance specified in the home     
,state license of the insurance         
producer1 and exercise all such         
incidental powers as shall be necessary 
to carry out such activities1 including 
claims adjustments and settlement to the
 extent permissible under the laws of   

the ,state1 risk management1 employee   
benefits advice1 retirement planning1   
and any other insurance-related         
consulting activities2  7,b7 be the     
equivalent of a nonresident insurance   
producer license for purposes of        
authorizing the insurance producer to   
engage in the activities described in   
subparagraph 7,a7 in any ,state where   
the member pays the licensing fee2 and  
7,c7 be the equivalent of a nonresident 
insurance producer license for the      
purpose of subjecting an insurance      
producer to all laws1 regulations1      
provisions or other action of any ,state
 concerning revocation1 suspension1 or  
other enforcement action related to the 
ability of a member to engage in any    
activity within the scope of authority  
granted under this subsection and to all
 ,state laws1 regulations1 provisions1  
and actions preserved under paragraph   
7#e74  7#b7 ,violent ,crime ,control and
 ,law ,enforcement ,act of #aiid        
,nothing in this subtitle shall be      

construed to alter1 modify1 or supercede
 any requirement established by section 
#ajcc of title #ah1 ,united ,states     
,code4  7#c7 ,agent for remitting fees  
,the ,association shall act as an agent 
for any member for purposes of remitting
 licensing fees to any ,state pursuant  
to paragraph 7#a74  7#d7 ,notification  
of action  7,a7 ,in general ,the        
,association shall notify the ,states   
7including ,state insurance regulators7 
and the ,,naic when an insurance        
producer has satisfied the membership   
criteria of this section4 ,the ,states  
7including ,state insurance regulators7 
shall have #aj business days after the  
date of the notification in order to    
provide the ,association with evidence  
that the insurance producer does not    
satisfy the criteria for membership in  
the ,association4  7,b7 ,ongoing        
disclosures required ,on an ongoing     
basis1 the ,association shall disclose  
to the ,states 7including ,state        
insurance regulators7 and the ,,naic a  

list of the ,states in which each member
 is authorized to operate4 ,the         
,association shall immediately notify   
the ,states 7including ,state insurance 
regulators7 and the ,,naic when a member
 is newly authorized to operate in one  
or more ,states1 or is no longer        
authorized to operate in one or more    
,states on the basis of ,association    
membership4  7#e7 ,preservation of      
consumer protection and market conduct  
regulation  7,a7 ,in general ,no        
provision of this section shall be      
construed as altering or affecting the  
applicability or continuing             
effectiveness of any law1 regulation1   
provision1 or other action of any       
,state1 including those described in    
subparagraph 7,b71 to the extent that   
the ,state law1 regulation1 provision1  
or other action is not inconsistent with
 the provisions of this subtitle related
 to market entry for nonresident        
insurance producers1 and then only to   
the extent of the inconsistency4  7,b7  

,preserved regulations ,the laws1       
regulations1 provisions1 or other       
actions of any ,state referred to in    
subparagraph 7,a7 include laws1         
regulations1 provisions1 or other       
actions that-- 7i7 regulate market      
conduct1 insurance producer conduct1 or 
unfair trade practices2  7ii7 establish 
consumer protections2 or  7iii7 require 
insurance producers to be appointed by a
 licensed or authorized insurer4  7f7   
,biennial renewal ,membership in the    
,association shall be renewed on a      
biennial basis4  7g7 ,continuing        
education  7#a7 ,in general ,the        
,association shall establish1 as a      
condition of membership1 continuing     
education requirements which shall be   
comparable to the continuing education  
requirements under the licensing laws of
 a majority of the ,states4  7#b7 ,state
 continuing education requirements ,a   
member may not be required to satisfy   
continuing education requirements       
imposed under the laws1 regulations1    

provisions1 or actions of any ,state    
other than the home ,state of the       
member4  7#c7 ,reciprocity ,the         
,association shall not require a member 
to satisfy continuing education         
requirements that are equivalent to any 
continuing education requirements of the
 home ,state of the member that have    
been satisfied by the member during the 
applicable licensing period4  7#d7      
,limitation on the ,association ,the    
,association shall not directly or      
indirectly offer any continuing         
education courses for insurance         
producers4  7h7 ,probation1 suspension  
and revocation  7#a7 ,disciplinary      
action ,the ,association may place an   
insurance producer that is a member of  
the ,association on probation or suspend
 or revoke the membership of the        
insurance producer in the ,association1 
or assess monetary fines or penalties1  
as the ,association determines to be    
appropriate1 if-- 7,a7 the insurance    
producer fails to meet the applicable   

membership criteria or other standards  
established by the ,association2  7,b7  
the insurance producer has been subject 
to disciplinary action pursuant to a    
final adjudicatory proceeding under the 
jurisdiction of a ,state insurance      
regulator2  7,c7 an insurance license   
held by the insurance producer has been 
suspended or revoked by a ,state        
insurance regulator2 or  7,d7 the       
insurance producer has been convicted of
 a crime that would have resulted in the
 denial of membership pursuant to       
subsection 7a77#d77,l77i7 at the time of
 application1 and the ,association has  
received a copy of the final disposition
 from a court of competent jurisdiction4
  7#b7 ,violations of ,association      
standards ,the ,association shall have  
the power to investigate alleged        
violations of ,association standards4   
7#c7 ,reporting ,the ,association shall 
immediately notify the ,states          
7including ,state insurance regulators7 
and the ,,naic when the membership of an

 insurance producer has been placed on  
probation or has been suspended1        
revoked1 or otherwise terminated1 or    
when the ,association has assessed      
monetary fines or penalties4  7i7       
,consumer complaints  7#a7 ,in general  
,the ,association shall-- 7,a7 refer any
 complaint against a member of the      
,association from a consumer relating to
 alleged misconduct or violations of    
,state insurance laws to the ,state     
insurance regulator where the consumer  
resides and1 when appropriate1 to any   
additional ,state insurance regulator1  
as determined by standards adopted by   
the ,association2 and  7,b7 make any    
related records and information         
available to each ,state insurance      
regulator to whom the complaint is      
forwarded4  7#b7 ,telephone and other   
access ,the ,association shall maintain 
a toll-free number for purposes of this 
subsection and1 as practicable1 other   
alternative means of communication with 
consumers1 such as an ,internet webpage4

  7#c7 ,final disposition of            
investigation ,state insurance          
regulators shall provide the            
,association with information regarding 
the final disposition of a complaint    
referred pursuant to paragraph          
7#a77;,a71 but nothing shall be         
construed to compel a ,state to release 
confidential investigation reports or   
other information protected by ,state   
law to the ,association4  7j7           
,information sharing ,the ,association  
may-- 7#a7 share documents1 materials1  
or other information1 including         
confidential and privileged documents1  
with a ,state1 ,federal1 or             
international governmental entity or    
with the ,,naic or other appropriate    
entity referenced in paragraphs 7#c7 and
 7#d71 provided that the recipient has  
the authority and agrees to maintain the
 confidentiality or privileged status of
 the document1 material1 or other       
information2  7#b7 limit the sharing of 
information as required under this      

subtitle with the ,,naic or any other   
non-governmental entity1 in             
circumstances under which the           
,association determines that the sharing
 of such information is unnecessary to  
further the purposes of this subtitle2  
7#c7 establish a central clearinghouse1 
or utilize the ,,naic or another        
appropriate entity1 as determined by the
 ,association1 as a central             
clearinghouse1 for use by the           
,association and the ,states 7including 
,state insurance regulators71 through   
which members of the ,association may   
disclose their intent to operate in #a  
or more ,states and pay the licensing   
fees to the appropriate ,states2 and    
7#d7 establish a database1 or utilize   
the ,,naic or another appropriate       
entity1 as determined by the            
,association1 as a database1 for use by 
the ,association and the ,states        
7including ,state insurance regulators7 
for the collection of regulatory        
information concerning the activities of

 insurance producers4  7k7 ,effective   
,date ,the provisions of this section   
shall take effect on the later of-- 7#a7
 the expiration of the #b-year period   
beginning on the date of enactment of   
the ,national ,association of           
,registered ,agents and ,brokers ,reform
 ,act of #bjad2 and  7#b7 the date of   
incorporation of the ,association4      
#cbd4 ,board of directors  7a7          
,establishment ,there is established a  
board of directors of the ,association1 
which shall have authority to govern and
 supervise all activities of the        
,association4  7b7 ,powers ,the ,board  
shall have such of the powers and       
authority of the ,association as may be 
specified in the bylaws of the          
,association4  7c7 ,composition  7#a7   
,in general ,the ,board shall consist of
 #ac members who shall be appointed by  
the ,president1 by and with the advice  
and consent of the ,senate1 in          
accordance with the procedures          
established under ,senate ,resolution   

#aaf of the #aabth ,congress1 of whom-- 
7,a7 #h shall be ,state insurance       
commissioners appointed in the manner   
provided in paragraph 7#b71 #a of whom  
shall be designated by the ,president to
 serve as the chairperson of the ,board 
until the ,board elects one such ,state 
insurance commissioner ,board member to 
serve as the chairperson of the ,board2 
7,b7 #c shall have demonstrated         
expertise and experience with property  
and casualty insurance producer         
licensing2 and  7,c7 #b shall have      
demonstrated expertise and experience   
with life or health insurance producer  
licensing4  7#b7 ,state insurance       
regulator representatives  7,a7         
,recommendations ,before making any     
appointments pursuant to paragraph      
7#a77;,a71 the ,president shall request 
a list of recommended candidates from   
the ,states through the ,,naic1 which   
shall not be binding on the ,president4 
,if the ,,naic fails to submit a list of
 recommendations not later than #ae     

business days after the date of the     
request1 the ,president may make the    
requisite appointments without          
considering the views of the ,,naic4    
7,b7 ,political affiliation ,not more   
than #d ,board members appointed under  
paragraph 7#a77;,a7 shall belong to the 
same political party4  7,c7 ,former     
,state insurance commissioners  7i7 ,in 
general ,if1 after offering each        
currently serving ,state insurance      
commissioner an appointment to the      
,board1 fewer than #h ,state insurance  
commissioners have accepted appointment 
to the ,board1 the ,president may       
appoint the remaining ,state insurance  
commissioner ,board members1 as required
 under paragraph 7#a77;,a71 of the      
appropriate political party as required 
under subparagraph 7,b71 from among     
individuals who are former ,state       
insurance commissioners4  7ii7          
,limitation ,a former ,state insurance  
commissioner appointed as described in  
clause 7i7 may not be employed by or    

have any present direct or indirect     
financial interest in any insurer1      
insurance producer1 or other entity in  
the insurance industry1 other than      
direct or indirect ownership of1 or     
beneficial interest in1 an insurance    
policy or annuity contract written or   
sold by an insurer4  7,d7 ,service      
through term ,if a ,board member        
appointed under paragraph 7#a77;,a7     
ceases to be a ,state insurance         
commissioner during the term of the     
,board member1 the ,board member shall  
cease to be a ,board member4  7#c7      
,private sector representatives ,in     
making any appointment pursuant to      
subparagraphs 7,b7 and 7,c7 of paragraph
 7#a71 the ,president may seek          
recommendations for candidates from     
groups representing the category of     
individuals described1 which shall not  
be binding on the ,president4  7#d7     
,state insurance commissioner defined   
,for purposes of this subsection1 the   
term ,state insurance commissioner means

 a person who serves in the position in 
,state government1 or on the board1     
commission1 or other body that is the   
primary insurance regulatory authority  
for the ,state4  7d7 ,terms  7#a7 ,in   
general ,except as provided under       
paragraph 7#b71 the term of service for 
each ,board member shall be #b years4   
7#b7 ,exceptions  7,a7 #a-year terms    
,the term of service shall be #a year1  
as designated by the ,president at the  
time of the nomination of the subject   
,board members for-- 7i7 #d of the      
,state insurance commissioner ,board    
members initially appointed under       
paragraph 7#a77;,a71 of whom not more   
than #b shall belong to the same        
political party2  7ii7 #a of the ,board 
members initially appointed under       
paragraph 7#a77;,b72 and  7iii7 #a of   
the ,board members initially appointed  
under paragraph 7#a77;,c74  7,b7        
,expiration of ,term ,a ,board member   
may continue to serve after the         
expiration of the term to which the     

,board member was appointed for the     
earlier of #b years or until a successor
 is appointed4  7,c7 ,mid-term          
appointments ,a ,board member appointed 
to fill a vacancy occurring before the  
expiration of the term for which the    
predecessor of the ,board member was    
appointed shall be appointed only for   
the remainder of that term4  7#c7       
,successive terms ,board members may be 
reappointed to successive terms4  7e7   
,initial appointments ,the appointment  
of initial ,board members shall be made 
no later than #ij days after the date of
 enactment of the ,national ,association
 of ,registered ,agents and ,brokers    
,reform ,act of #bjad4  7f7 ,meetings   
7#a7 ,in general ,the ,board shall      
meet-- 7,a7 at the call of the          
chairperson2  7,b7 as requested in      
writing to the chairperson by not fewer 
than #e ,board members2 or  7,c7 as     
otherwise provided by the bylaws of the 
,association4  7#b7 ,quorum required ,a 
majority of all ,board members shall    

constitute a quorum4  7#c7 ,voting      
,decisions of the ,board shall require  
the approval of a majority of all ,board
 members present at a meeting1 a quorum 
being present4  7#d7 ,initial meeting   
,the ,board shall hold its first meeting
 not later than #de days after the date 
on which all initial ,board members have
 been appointed4  7g7 ,restriction on   
confidential information ,board members 
appointed pursuant to subparagraphs 7,b7
 and 7,c7 of subsection 7c77#a7 shall   
not have access to confidential         
information received by the ,association
 in connection with complaints1         
investigations1 or disciplinary         
proceedings involving insurance         
producers4  7h7 ,ethics and conflicts of
 interest ,the ,board shall issue and   
enforce an ethical conduct code to      
address permissible and prohibited      
activities of ,board members and        
,association officers1 employees1       
agents1 or consultants4 ,the code shall1
 at a minimum1 include provisions that  

prohibit any ,board member or           
,association officer1 employee1 agent or
 consultant from-- 7#a7 engaging in     
unethical conduct in the course of      
performing ,association duties2  7#b7   
participating in the making or          
influencing the making of any           
,association decision1 the outcome of   
which the ,board member1 officer1       
employee1 agent1 or consultant knows or 
had reason to know would have a         
reasonably foreseeable material         
financial effect1 distinguishable from  
its effect on the public generally1 on  
the person or a member of the immediate 
family of the person2  7#c7 accepting   
any gift from any person or entity other
 than the ,association that is given    
because of the position held by the     
person in the ,association2  7#d7 making
 political contributions to any person  
or entity on behalf of the ,association2
 and  7#e7 lobbying or paying a person  
to lobby on behalf of the ,association4 
7i7 ,compensation  7#a7 ,in general     

,except as provided in paragraph 7#b71  
no ,board member may receive any        
compensation from the ,association or   
any other person or entity on account of
 ,board membership4  7#b7 ,travel       
expenses and per diem ,board members may
 be reimbursed only by the ,association 
for travel expenses1 including per diem 
in lieu of subsistence1 at rates        
consistent with rates authorized for    
employees of ,federal agencies under    
subchapter ,i of chapter #eg of title   
#e1 ,united ,states ,code1 while away   
from home or regular places of business 
in performance of services for the      
,association4  #cbe4 ,bylaws1 standards1
 and disciplinary actions  7a7 ,adoption
 and amendment of bylaws and standards  
7#a7 ,procedures ,the ,association shall
 adopt procedures for the adoption of   
bylaws and standards that are similar to
 procedures under subchapter ,,ii of    
chapter #e of title #e1 ,united ,states 
,code 7commonly known as the            
,administrative ,procedure ,act74  7#b7 

,copy required to be filed ,the ,board  
shall submit to the ,president1 through 
the ,department of the ,treasury1 and   
the ,states 7including ,state insurance 
regulators71 and shall publish on the   
website of the ,association1 all        
proposed bylaws and standards of the    
,association1 or any proposed amendment 
to the bylaws or standards of the       
,association1 accompanied by a concise  
general statement of the basis and      
purpose of such proposal4  7#c7         
,effective date ,any proposed bylaw or  
standard of the ,association1 and any   
proposed amendment to the bylaws or     
standards of the ,association1 shall    
take effect1 after notice under         
paragraph 7#b7 and opportunity for      
public comment1 on such date as the     
,association may designate1 unless      
suspended under section #cbi7;c74  7#d7 
,rule of construction ,nothing in this  
section shall be construed to subject   
the ,board or the ,association to the   
requirements of subchapter ,,ii of      

chapter #e of title #e1 ,united ,states 
,code 7commonly known as the            
,administrative ,procedure ,act74  7b7  
,disciplinary action by the ,association
  7#a7 ,specification of charges ,in any
 proceeding to determine whether        
membership shall be denied1 suspended1  
revoked1 or not renewed1 or to determine
 whether a member of the ,association   
should be placed on probation 7referred 
to in this section as a disciplinary    
action7 or whether to assess fines or   
monetary penalties1 the ,association    
shall bring specific charges1 notify the
 member of the charges1 give the member 
an opportunity to defend against the    
charges1 and keep a record4  7#b7       
,supporting statement ,a determination  
to take disciplinary action shall be    
supported by a statement setting forth--
 7,a7 any act or practice in which the  
member has been found to have been      
engaged2  7,b7 the specific provision of
 this subtitle or standard of the       
,association that any such act or       

practice is deemed to violate2 and  7,c7
 the sanction imposed and the reason for
 the sanction4  7#c7 ,ineligibility of  
private sector representatives ,board   
members appointed pursuant to section   
#cbd7;c77#c7 may not-- 7,a7 participate 
in any disciplinary action or be counted
 toward establishing a quorum during a  
disciplinary action2 and  7,b7 have     
access to confidential information      
concerning any disciplinary action4     
#cbf4 ,powers ,in addition to all the   
powers conferred upon a nonprofit       
corporation by the ,district of         
,columbia ,nonprofit ,corporation ,act1 
the ,association shall have the power   
to-- 7#a7 establish and collect such    
membership fees as the ,association     
finds necessary to impose to cover the  
costs of its operations2  7#b7 adopt1   
amend1 and repeal bylaws1 procedures1 or
 standards governing the conduct of     
,association business and performance of
 its duties2  7#c7 establish procedures 
for providing notice and opportunity for

 comment pursuant to section #cbe7;a72  
7#d7 enter into and perform such        
agreements as necessary to carry out the
 duties of the ,association2  7#e7 hire 
employees1 professionals1 or            
specialists1 and elect or appoint       
officers1 and to fix their compensation1
 define their duties and give them      
appropriate authority to carry out the  
purposes of this subtitle1 and determine
 their qualification2  7#f7 establish   
personnel policies of the ,association  
and programs relating to1 among other   
things1 conflicts of interest1 rates of 
compensation1 where applicable1 and     
qualifications of personnel2  7#g7      
borrow money2 and  7#h7 secure funding  
for such amounts as the ,association    
determines to be necessary and          
appropriate to organize and begin       
operations of the ,association1 which   
shall be treated as loans to be repaid  
by the ,association with interest at    
market rate4  #cbg4 ,report by the      
,association  7a7 ,in general ,as soon  

as practicable after the close of each  
fiscal year1 the ,association shall     
submit to the ,president1 through the   
,department of the ,treasury1 and the   
,states 7including ,state insurance     
regulators71 and shall publish on the   
website of the ,association1 a written  
report regarding the conduct of its     
business1 and the exercise of the other 
rights and powers granted by this       
subtitle1 during such fiscal year4  7b7 
,financial statements ,each report      
submitted under subsection 7a7 with     
respect to any fiscal year shall include
 audited financial statements setting   
forth the financial position of the     
,association at the end of such fiscal  
year and the results of its operations  
7including the source and application of
 its funds7 for such fiscal year4  #cbh4
 ,liability of the ,association and the 
,board members1 officers1 and employees 
of the ,association  7a7 ,in general    
,the ,association shall not be deemed to
 be an insurer or insurance producer    

within the meaning of any ,state law1   
rule1 regulation1 or order regulating or
 taxing insurers1 insurance producers1  
or other entities engaged in the        
business of insurance1 including        
provisions imposing premium taxes1      
regulating insurer solvency or financial
 condition1 establishing guaranty funds 
and levying assessments1 or requiring   
claims settlement practices4  7b7       
,liability of ,board members1 officers1 
and employees ,no ,board member1        
officer1 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 responsibilities in      
connection with the ,association4  #cbi4
 ,presidential oversight  7a7 ,removal  
of ,board ,if the ,president determines 
that the ,association is acting in a    
manner contrary to the interests of the 
public or the purposes of this subtitle 
or has failed to perform its duties     
under this subtitle1 the ,president may 

remove the entire existing ,board for   
the remainder of the term to which the  
,board members were appointed and       
appoint1 in accordance with section #cbd
 and with the advice and consent of the 
,senate1 in accordance with the         
procedures established under ,senate    
,resolution #aaf of the #aabth          
,congress1 new ,board members to fill   
the vacancies on the ,board for the     
remainder of the terms4  7b7 ,removal of
 ,board member ,the ,president may      
remove a ,board member only for neglect 
of duty or malfeasance in office4  7c7  
,suspension of bylaws and standards and 
prohibition of actions ,following notice
 to the ,board1 the ,president1 or a    
person designated by the ,president for 
such purpose1 may suspend the           
effectiveness of any bylaw or standard1 
or prohibit any action1 of the          
,association that the ,president or the 
designee determines is contrary to the  
purposes of this subtitle4  #ccj4       
,relationship to ,state law  7a7        

,preemption of ,state laws ,state laws1 
regulations1 provisions1 or other       
actions purporting to regulate insurance
 producers shall be preempted to the    
extent provided in subsection 7b74  7b7 
,prohibited actions  7#a7 ,in general   
,no ,state shall-- 7,a7 impede the      
activities of1 take any action against1 
or apply any provision of law or        
regulation arbitrarily or               
discriminatorily to1 any insurance      
producer because that insurance producer
 or any affiliate plans to become1 has  
applied to become1 or is a member of the
 ,association2  7,b7 impose any         
requirement upon a member of the        
,association that it pay fees different 
from those required to be paid to that  
,state were it not a member of the      
,association2 or  7,c7 impose any       
continuing education requirements on any
 nonresident insurance producer that is 
a member of the ,association4  7#b7     
,states other than a home ,state ,no    
,state1 other than the home ,state of a 

member of the ,association1 shall-- 7,a7
 impose any licensing1 personal or      
corporate qualifications1 education1    
training1 experience1 residency1        
continuing education1 or bonding        
requirement upon a member of the        
,association that is different from the 
criteria for membership in the          
,association or renewal of such         
membership2  7,b7 impose any requirement
 upon a member of the ,association that 
it be licensed1 registered1 or otherwise
 qualified to do business or remain in  
good standing in the ,state1 including  
any requirement that the insurance      
producer register as a foreign company  
with the secretary of state or          
equivalent ,state official2  7,c7       
require that a member of the            
,association submit to a criminal       
history record check as a condition of  
doing business in the ,state2 or  7,d7  
impose any licensing1 registration1 or  
appointment requirements upon a member  
of the ,association1 or require a member

 of the ,association to be authorized to
 operate as an insurance producer1 in   
order to sell1 solicit1 or negotiate    
insurance for commercial property and   
casualty risks to an insured with risks 
located in more than one ,state1 if the 
member is licensed or otherwise         
authorized to operate in the ,state     
where the insured maintains its         
principal place of business and the     
contract of insurance insures risks     
located in that ,state4  7#c7           
,preservation of ,state disciplinary    
authority ,nothing in this section may  
be construed to prohibit a ,state from  
investigating and taking appropriate    
disciplinary action1 including          
suspension or revocation of authority of
 an insurance producer to do business in
 a ,state1 in accordance with ,state law
 and that is not inconsistent with the  
provisions of this section1 against a   
member of the ,association as a result  
of a complaint or for any alleged       
activity1 regardless of whether the     

activity occurred before or after the   
insurance producer commenced doing      
business in the ,state pursuant to      
,association membership4  #cca4         
,coordination with ,financial ,industry 
,regulatory ,authority ,the ,association
 shall coordinate with the ,financial   
,industry ,regulatory ,authority in     
order to ease any administrative burdens
 that fall on members of the            
,association that are subject to        
regulation by the ,financial ,industry  
,regulatory ,authority1 consistent with 
the requirements of this subtitle and   
the ,federal securities laws4  #ccb4    
,right of action  7a7 ,right of action  
,any person aggrieved by a decision or  
action of the ,association may1 after   
reasonably exhausting available avenues 
for resolution within the ,association1 
commence a civil action in an           
appropriate ,united ,states district    
court1 and obtain all appropriate       
relief4  7b7 ,association               
interpretations ,in any action under    

subsection 7a71 the court shall give    
appropriate weight to the interpretation
 of the ,association of its bylaws and  
standards and this subtitle4  #ccc4     
,federal ,funding ,prohibited ,the      
,association may not receive1 accept1 or
 borrow any amounts from the ,federal   
,government to pay for1 or reimburse the
 ,association for1 the costs of         
establishing or operating the           
,association4  #ccd4 ,definitions ,for  
purposes of this subtitle1 the following
 definitions shall apply3 7#a7 ,business
 entity ,the term business entity means 
a corporation1 association1 partnership1
 limited liability company1 limited     
liability partnership1 or other legal   
entity4  7#b7 ,depository institution   
,the term depository institution has the
 meaning as in section #c of the        
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahac74  7#c7 ,home ,state    
,the term home ,state means the ,state  
in which the insurance producer         
maintains its principal place of        

residence or business and is licensed to
 act as an insurance producer4  7#d7    
,insurance ,the term insurance means any
 product1 other than title insurance or 
bail bonds1 defined or regulated as     
insurance by the appropriate ,state     
insurance regulatory authority4  7#e7   
,insurance producer ,the term insurance 
producer means any insurance agent or   
broker1 excess or surplus lines broker  
or agent1 insurance consultant1 limited 
insurance representative1 and any other 
individual or entity that sells1        
solicits1 or negotiates policies of     
insurance or offers advice1 counsel1    
opinions or services related to         
insurance4  7#f7 ,insurer ,the term     
insurer has the meaning as in section   
#cac7;e77#b77;,b7 of title #ca1 ,united 
,states ,code4  7#g7 ,principal place of
 business ,the term principal place of  
business means the ,state in which an   
insurance producer maintains the        
headquarters of the insurance producer  
and1 in the case of a business entity1  

where high-level officers of the entity 
direct1 control1 and coordinate the     
business activities of the business     
entity4  7#h7 ,principal place of       
residence ,the term principal place of  
residence means the ,state in which an  
insurance producer resides for the      
greatest number of days during a        
calendar year4  7#i7 ,state ,the term   
,state includes any ,state1 the         
,district of ,columbia1 any territory of
 the ,united ,states1 and ,puerto ,rico1
 ,guam1 ,american ,samoa1 the ,trust    
,territory of the ,pacific ,islands1 the
 ,virgin ,islands1 and the ,northern    
,mariana ,islands4  7#aj7 ,state law    
7,a7 ,in general ,the term ,state law   
includes all laws1 decisions1 rules1    
regulations1 or other ,state action     
having the effect of law1 of any ,state4
  7,b7 ,laws applicable in the ,district
 of ,columbia ,a law of the ,united     
,states applicable only to or within the
 ,district of ,columbia shall be treated
 as a ,state law rather than a law of   

the ,united ,states4  4  7b7 ,technical 
amendment ,the table of contents for the
 ,gramm-,leach-,bliley ,act is amended  
by striking the items relating to       
subtitle ,c of title ,,iii and inserting
 the following new items3  ,subtitle    
,c--,national ,association of           
,registered ,agents and ,brokers,sec4   
#cba4 ,national ,association of         
,registered ,agents and ,brokers4,sec4  
#cbb4 ,purpose4,sec4 #cbc4              
,membership4,sec4 #cbd4 ,board of       
directors4,sec4 #cbe4 ,bylaws1          
standards1 and disciplinary             
actions4,sec4 #cbf4 ,powers4,sec4 #cbg4 
,report by the ,association4,sec4 #cbh4 
,liability of the ,association and the  
,board members1 officers1 and employees 
of the ,association4,sec4 #cbi4         
,presidential oversight4,sec4 #ccj4     
,relationship to ,state law4,sec4 #cca4 
,coordination with ,financial ,industry 
,regulatory ,authority4,sec4 #ccb4      
,right of action4,sec4 #ccc4 ,federal   
funding prohibited4,sec4 #ccd4          

,definitions4  4  ,passed the ,senate   
,january #cj1 #bjad4,secretary