§6755 Bylaws, Standards, and Disciplinary Actions

Summary

The Association must set up rules for making and changing its bylaws and standards that are like the procedures in the Administrative Procedure Act. The Board must send any proposed bylaws or changes to the President through the Department of the Treasury, to the States (including State insurance regulators), and post them on the Association’s website. Each proposal must include a short statement saying why it is needed. After notice and a chance for public comment, the Association decides the effective date for a new or changed bylaw unless it is suspended under section 6759(c). The Board and Association are not otherwise subject to the Administrative Procedure Act. For any action to deny, suspend, revoke, not renew membership, place a member on probation, or assess fines, the Association must make specific charges, tell the member, allow a defense, and keep a record. Any decision must state what the member did, which rule was broken, and what penalty is imposed and why. Board members appointed under section 6754(c)(3) cannot take part in these disciplinary actions, be counted for a quorum during them, or see confidential information about them.