
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC6758]

 
                      TITLE 15--COMMERCE AND TRADE
 
                          CHAPTER 93--INSURANCE
 
  SUBCHAPTER III--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS
 
Sec. 6758. Bylaws, rules, and disciplinary action


(a) Adoption and amendment of bylaws

             (1) Copy required to be filed with the NAIC

        The board of directors of the Association shall file with the 
    NAIC a copy of the proposed bylaws or any proposed amendment to the 
    bylaws, accompanied by a concise general statement of the basis and 
    purpose of such proposal.

                         (2) Effective date

        Except as provided in paragraph (3), any proposed bylaw or 
    proposed amendment shall take effect--
            (A) 30 days after the date of the filing of a copy with the 
        NAIC;
            (B) upon such later date as the Association may designate; 
        or
            (C) upon such earlier date as the NAIC may determine.

                     (3) Disapproval by the NAIC

        Notwithstanding paragraph (2), a proposed bylaw or amendment 
    shall not take effect if, after public notice and opportunity to 
    participate in a public hearing--
            (A) the NAIC disapproves such proposal as being contrary to 
        the public interest or contrary to the purposes of this 
        subchapter and provides notice to the Association setting forth 
        the reasons for such disapproval; or
            (B) the NAIC finds that such proposal involves a matter of 
        such significant public interest that public comment should be 
        obtained, in which case it may, after notifying the Association 
        in writing of such finding, require that the procedures set 
        forth in subsection (b) of this section be followed with respect 
        to such proposal, in the same manner as if such proposed bylaw 
        change were a proposed rule change within the meaning of such 
        subsection.

(b) Adoption and amendment of rules

            (1) Filing proposed regulations with the NAIC

        (A) In general

            The board of directors of the Association shall file with 
        the NAIC a copy of any proposed rule or any proposed amendment 
        to a rule of the Association which shall be accompanied by a 
        concise general statement of the basis and purpose of such 
        proposal.

        (B) Other rules and amendments ineffective

            No proposed rule or amendment shall take effect unless 
        approved by the NAIC or otherwise permitted in accordance with 
        this paragraph.

                (2) Initial consideration by the NAIC

        Not later than 35 days after the date of publication of notice 
    of filing of a proposal, or before the end of such longer period not 
    to exceed 90 days as the NAIC may designate after such date, if the 
    NAIC finds such longer period to be appropriate and sets forth its 
    reasons for so finding, or as to which the Association consents, the 
    NAIC shall--
            (A) by order approve such proposed rule or amendment; or
            (B) institute proceedings to determine whether such proposed 
        rule or amendment should be modified or disapproved.

                        (3) NAIC proceedings

        (A) In general

            Proceedings instituted by the NAIC with respect to a 
        proposed rule or amendment pursuant to paragraph (2) shall--
                (i) include notice of the grounds for disapproval under 
            consideration;
                (ii) provide opportunity for hearing; and
                (iii) be concluded not later than 180 days after the 
            date of the Association's filing of such proposed rule or 
            amendment.

        (B) Disposition of proposal

            At the conclusion of any proceeding under subparagraph (A), 
        the NAIC shall, by order, approve or disapprove the proposed 
        rule or amendment.

        (C) Extension of time for consideration

            The NAIC may extend the time for concluding any proceeding 
        under subparagraph (A) for--
                (i) not more than 60 days if the NAIC finds good cause 
            for such extension and sets forth its reasons for so 
            finding; or
                (ii) such longer period as to which the Association 
            consents.

                      (4) Standards for review

        (A) Grounds for approval

            The NAIC shall approve a proposed rule or amendment if the 
        NAIC finds that the rule or amendment is in the public interest 
        and is consistent with the purposes of this Act.

        (B) Approval before end of notice period

            The NAIC shall not approve any proposed rule before the end 
        of the 30-day period beginning on the date on which the 
        Association files proposed rules or amendments in accordance 
        with paragraph (1), unless the NAIC finds good cause for so 
        doing and sets forth the reasons for so finding.

                       (5) Alternate procedure

        (A) In general

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

        (B) Abrogation by the NAIC

            (i) In general

                At any time within 60 days after the date of filing of 
            any proposed rule or amendment under subparagraph (A)(i) or 
            clause (ii) of this subparagraph, the NAIC may repeal such 
            rule or amendment and require that the rule or amendment be 
            refiled and reviewed in accordance with this paragraph, if 
            the NAIC finds that such action is necessary or appropriate 
            in the public interest, for the protection of insurance 
            producers or policyholders, or otherwise in furtherance of 
            the purposes of this subchapter.
            (ii) Effect of reconsideration by the NAIC

                Any action of the NAIC pursuant to clause (i) shall--
                    (I) not affect the validity or force of a rule 
                change during the period such rule or amendment was in 
                effect; and
                    (II) not be considered to be a final action.

(c) Action required by the NAIC

    The NAIC may, in accordance with such rules as the NAIC determines 
to be necessary or appropriate to the public interest or to carry out 
the purposes of this subchapter, require the Association to adopt, 
amend, or repeal any bylaw, rule, or amendment of the Association, 
whenever adopted.

(d) Disciplinary action by the Association

                    (1) Specification of charges

        In any proceeding to determine whether membership shall be 
    denied, suspended, revoked, or not renewed (hereafter in this 
    section referred to as a ``disciplinary action''), the Association 
    shall bring specific charges, notify such member of such charges, 
    give the member an opportunity to defend against the charges, and 
    keep a record.

                      (2) Supporting statement

        A determination to take disciplinary action shall be supported 
    by a statement setting forth--
            (A) any act or practice in which such member has been found 
        to have been engaged;
            (B) the specific provision of this subchapter, the rules or 
        regulations under this subchapter, or the rules of the 
        Association which any such act or practice is deemed to violate; 
        and
            (C) the sanction imposed and the reason for such sanction.

(e) NAIC review of disciplinary action

                       (1) Notice to the NAIC

        If the Association orders any disciplinary action, the 
    Association shall promptly notify the NAIC of such action.

                       (2) Review by the NAIC

        Any disciplinary action taken by the Association shall be 
    subject to review by the NAIC--
            (A) on the NAIC's own motion; or
            (B) upon application by any person aggrieved by such action 
        if such application is filed with the NAIC not more than 30 days 
        after the later of--
                (i) the date the notice was filed with the NAIC pursuant 
            to paragraph (1); or
                (ii) the date the notice of the disciplinary action was 
            received by such aggrieved person.

(f) Effect of review

    The filing of an application to the NAIC for review of a 
disciplinary action, or the institution of review by the NAIC on the 
NAIC's own motion, shall not operate as a stay of disciplinary action 
unless the NAIC otherwise orders.

(g) Scope of review

                           (1) In general

        In any proceeding to review such action, after notice and the 
    opportunity for hearing, the NAIC shall--
            (A) determine whether the action should be taken;
            (B) affirm, modify, or rescind the disciplinary sanction; or
            (C) remand to the Association for further proceedings.

                       (2) Dismissal of review

        The NAIC may dismiss a proceeding to review disciplinary action 
    if the NAIC finds that--
            (A) the specific grounds on which the action is based exist 
        in fact;
            (B) the action is in accordance with applicable rules and 
        regulations; and
            (C) such rules and regulations are, and were, applied in a 
        manner consistent with the purposes of this subchapter.

(Pub. L. 106-102, title III, Sec. 328, Nov. 12, 1999, 113 Stat. 1427.)

                       References in Text

    This Act, referred to in subsec. (b)(4)(A), is Pub. L. 106-102, Nov. 
12, 1999, 113 Stat. 1338, known as the Gramm-Leach-Bliley Act. For 
complete classification of this Act to the Code, see Short Title of 1999 
Amendment note set out under section 1811 of Title 12, Banks and 
Banking, and Tables.

                  Section Referred to in Other Sections

    This section is referred to in sections 6760, 6762 of this title.
