§ 6762. — Elimination of NAIC oversight.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC6762]
TITLE 15--COMMERCE AND TRADE
CHAPTER 93--INSURANCE
SUBCHAPTER III--NATIONAL ASSOCIATION OF REGISTERED AGENTS AND BROKERS
Sec. 6762. Elimination of NAIC oversight
(a) In general
The Association shall be established without NAIC oversight and the
provisions set forth in section 6754 of this title, subsections (a),
(b), (c), and (e) of section 6758 of this title, and sections 6759(b)
and 6760 of this title shall cease to be effective if, at the end of the
2-year period beginning on the date on which the provisions of this
subchapter take effect pursuant to section 6751 of this title--
(1) at least a majority of the States representing at least 50
percent of the total United States commercial-lines insurance
premiums have not satisfied the uniformity or reciprocity
requirements of subsections (a), (b), and (c) of section 6751 of
this title; and
(2) the NAIC has not approved the Association's bylaws as
required by section 6758 of this title or is unable to operate or
supervise the Association, or the Association is not conducting its
activities as required under this Act.
(b) Board appointments
If the repeals required by subsection (a) of this section are
implemented, the following shall apply:
(1) General appointment power
The President, with the advice and consent of the Senate, shall
appoint the members of the Association's Board established under
section 6756 of this title from lists of candidates recommended to
the President by the NAIC.
(2) Procedures for obtaining NAIC appointment
recommendations
(A) Initial determination and recommendations
After the date on which the provisions of subsection (a) of
this section take effect, the NAIC shall, not later than 60 days
thereafter, provide a list of recommended candidates to the
President. If the NAIC fails to provide a list by that date, or
if any list that is provided does not include at least 14
recommended candidates or comply with the requirements of
section 6756(c) of this title, the President shall, with the
advice and consent of the Senate, make the requisite
appointments without considering the views of the NAIC.
(B) Subsequent appointments
After the initial appointments, the NAIC shall provide a
list of at least six recommended candidates for the Board to the
President by January 15 of each subsequent year. If the NAIC
fails to provide a list by that date, or if any list that is
provided does not include at least six recommended candidates or
comply with the requirements of section 6756(c) of this title,
the President, with the advice and consent of the Senate, shall
make the requisite appointments without considering the views of
the NAIC.
(C) Presidential oversight
(i) Removal
If the President determines that the Association is not
acting in the interests of the public, the President may
remove the entire existing Board for the remainder of the
term to which the members of the Board were appointed and
appoint, with the advice and consent of the Senate, new
members to fill the vacancies on the Board for the remainder
of such terms.
(ii) Suspension of rules or actions
The President, or a person designated by the President
for such purpose, may suspend the effectiveness of any rule,
or prohibit any action, of the Association which the
President or the designee determines is contrary to the
public interest.
(c) Annual report
As soon as practicable after the close of each fiscal year, the
Association shall submit to the President and to the Congress a written
report relative to the conduct of its business, and the exercise of the
other rights and powers granted by this subchapter, during such fiscal
year. Such report shall include financial statements setting forth the
financial position of the Association at the end of such fiscal year and
the results of its operations (including the source and application of
its funds) for such fiscal year.
(Pub. L. 106-102, title III, Sec. 332, Nov. 12, 1999, 113 Stat. 1431.)
References in Text
This Act, referred to in subsec. (a)(2), 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 section 6756 of this title.
