15 U.S. Code § 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—
(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.
(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—
(3) NAIC proceedings
(A) In general
Proceedings instituted by the NAIC with respect to a proposed rule or amendment pursuant to paragraph (2) shall—
(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
(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
(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.
(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—
(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
(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—
(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—
(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—
(2) Dismissal of review
The NAIC may dismiss a proceeding to review disciplinary action if the NAIC finds that—
Source(Pub. L. 106–102, title III, § 328,Nov. 12, 1999, 113 Stat. 1427.)
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