§6755 — Title 15 Commerce and Trade | U.S. Code

Summary

The Association must set up rule-making steps like those in the Administrative Procedure Act (subchapter II of chapter 5 of title 5). It must send every proposed bylaw or standard, and any changes, to the President through the Treasury Department and to the States (including state insurance regulators). The Association must also post the proposals on its website and include a short statement saying why the proposal is needed. After notice and a chance for public comment, a proposal goes into effect on the date the Association names, unless it is suspended under section 6759(c). When the Association moves to deny, suspend, revoke, or not renew membership, put a member on probation, or impose fines, it must bring specific charges, tell the member, allow the member to defend, and keep a record. Any decision must list the act found, the exact rule or part of this subchapter violated, and the penalty and reason. Board members appointed under section 6754(c)(3) may not take part in disciplinary actions, count toward a quorum for them, or see confidential information about them.

Title 15, §6755

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(a)(1)The Association shall adopt procedures for the adoption of bylaws and standards that are similar to procedures under subchapter II of chapter 5 of title 5 (commonly known as the “Administrative Procedure Act”).

(2)The Board shall submit to the President, through the Department of the Treasury, and the States (including State insurance regulators), and shall publish on the website of the Association, all proposed bylaws and standards of the Association, or any proposed amendment to the bylaws or standards of the Association, accompanied by a concise general statement of the basis and purpose of such proposal.

(3)Any proposed bylaw or standard of the Association, and any proposed amendment to the bylaws or standards of the Association, shall take effect, after notice under paragraph (2) and opportunity for public comment, on such date as the Association may designate, unless suspended under section 6759(c) of this title.

(4)Nothing in this section shall be construed to subject the Board or the Association to the requirements of subchapter II of chapter 5 of title 5 (commonly known as the “Administrative Procedure Act”).

(b)(1)In any proceeding to determine whether membership shall be denied, suspended, revoked, or not renewed, or to determine whether a member of the Association should be placed on probation (referred to in this section as a “disciplinary action”) or whether to assess fines or monetary penalties, the Association shall bring specific charges, notify the member of the charges, give the member an opportunity to defend against the charges, and keep a record.

(2)A determination to take disciplinary action shall be supported by a statement setting forth—

(A)any act or practice in which the member has been found to have been engaged;

(B)the specific provision of this subchapter or standard of the Association that any such act or practice is deemed to violate; and

(C)the sanction imposed and the reason for the sanction.

(3)Board members appointed pursuant to section 6754(c)(3) of this title may not—

(A)participate in any disciplinary action or be counted toward establishing a quorum during a disciplinary action; and

(B)have access to confidential information concerning any disciplinary action.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to this section were contained in section 6758 of this title, prior to the general amendment of this subchapter by Pub. L. 114–1. A prior section 6755, Pub. L. 106–102, title III, § 325, Nov. 12, 1999, 113 Stat. 1424, related to membership in the Association, prior to the general amendment of this subchapter by Pub. L. 114–1. See section 6753 of this title.

§6755 Bylaws, Standards, and Disciplinary Actions

Summary

Title 15, §6755

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Citations & Metadata