§ 6751. — State flexibility in multistate licensing reforms.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC6751]
TITLE 15--COMMERCE AND TRADE
CHAPTER 93--INSURANCE
SUBCHAPTER III--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS
Sec. 6751. State flexibility in multistate licensing reforms
(a) In general
The provisions of this subchapter shall take effect unless, not
later than 3 years after November 12, 1999, at least a majority of the
States--
(1) have enacted uniform laws and regulations governing the
licensure of individuals and entities authorized to sell and solicit
the purchase of insurance within the State; or
(2) have enacted reciprocity laws and regulations governing the
licensure of nonresident individuals and entities authorized to sell
and solicit insurance within those States.
(b) Uniformity required
States shall be deemed to have established the uniformity necessary
to satisfy subsection (a)(1) of this section if the States--
(1) establish uniform criteria regarding the integrity, personal
qualifications, education, training, and experience of licensed
insurance producers, including the qualification and training of
sales personnel in ascertaining the appropriateness of a particular
insurance product for a prospective customer;
(2) establish uniform continuing education requirements for
licensed insurance producers;
(3) establish uniform ethics course requirements for licensed
insurance producers in conjunction with the continuing education
requirements under paragraph (2);
(4) establish uniform criteria to ensure that an insurance
product, including any annuity contract, sold to a consumer is
suitable and appropriate for the consumer based on financial
information disclosed by the consumer; and
(5) do not impose any requirement upon any insurance producer to
be licensed or otherwise qualified to do business as a nonresident
that has the effect of limiting or conditioning that producer's
activities because of its residence or place of operations, except
that countersignature requirements imposed on nonresident producers
shall not be deemed to have the effect of limiting or conditioning a
producer's activities because of its residence or place of
operations under this section.
(c) Reciprocity required
States shall be deemed to have established the reciprocity required
to satisfy subsection (a)(2) of this section if the following conditions
are met:
(1) Administrative licensing procedures
At least a majority of the States permit a producer that has a
resident license for selling or soliciting the purchase of insurance
in its home State to receive a license to sell or solicit the
purchase of insurance in such majority of States as a nonresident to
the same extent that such producer is permitted to sell or solicit
the purchase of insurance in its State, if the producer's home State
also awards such licenses on such a reciprocal basis, without
satisfying any additional requirements other than submitting--
(A) a request for licensure;
(B) the application for licensure that the producer
submitted to its home State;
(C) proof that the producer is licensed and in good standing
in its home State; and
(D) the payment of any requisite fee to the appropriate
authority.
(2) Continuing education requirements
A majority of the States accept an insurance producer's
satisfaction of its home State's continuing education requirements
for licensed insurance producers to satisfy the States' own
continuing education requirements if the producer's home State also
recognizes the satisfaction of continuing education requirements on
such a reciprocal basis.
(3) No limiting nonresident requirements
A majority of the States do not impose any requirement upon any
insurance producer to be licensed or otherwise qualified to do
business as a nonresident that has the effect of limiting or
conditioning that producer's activities because of its residence or
place of operations, except that countersignature requirements
imposed on nonresident producers shall not be deemed to have the
effect of limiting or conditioning a producer's activities because
of its residence or place of operations under this section.
(4) Reciprocal reciprocity
Each of the States that satisfies paragraphs (1), (2), and (3)
grants reciprocity to residents of all of the other States that
satisfy such paragraphs.
(d) Determination
(1) NAIC determination
At the end of the 3-year period beginning on November 12, 1999,
the National Association of Insurance Commissioners (hereafter in
this subchapter referred to as the ``NAIC'') shall determine, in
consultation with the insurance commissioners or chief insurance
regulatory officials of the States, whether the uniformity or
reciprocity required by subsections (b) and (c) of this section has
been achieved.
(2) Judicial review
The appropriate United States district court shall have
exclusive jurisdiction over any challenge to the NAIC's
determination under this section and such court shall apply the
standards set forth in section 706 of title 5 when reviewing any
such challenge.
(e) Continued application
If, at any time, the uniformity or reciprocity required by
subsections (b) and (c) of this section no longer exists, the provisions
of this subchapter shall take effect 2 years after the date on which
such uniformity or reciprocity ceases to exist, unless the uniformity or
reciprocity required by those provisions is satisfied before the
expiration of that 2-year period.
(f) Savings provision
No provision of this section shall be construed as requiring that
any law, regulation, provision, or action of any State which purports to
regulate insurance producers, including any such law, regulation,
provision, or action which purports to regulate unfair trade practices
or establish consumer protections, including countersignature laws, be
altered or amended in order to satisfy the uniformity or reciprocity
required by subsections (b) and (c) of this section, unless any such
law, regulation, provision, or action is inconsistent with a specific
requirement of any such subsection and then only to the extent of such
inconsistency.
(g) Uniform licensing
Nothing in this section shall be construed to require any State to
adopt new or additional licensing requirements to achieve the uniformity
necessary to satisfy subsection (a)(1) of this section.
(Pub. L. 106-102, title III, Sec. 321, Nov. 12, 1999, 113 Stat. 1422.)
Section Referred to in Other Sections
This section is referred to in section 6762 of this title.
