  title v insurance  subtitle a federal insurance office  sec 501 short title  this subtitle may be cited as the federal insurance office act of 2010    sec 502 federal insurance office  a establishment of office subchapter i of chapter 3 of subtitle i of title 31, united states code, is amended  1 by redesignating section 312 as section 315   2 by redesignating section 313 as section 312 and   3 by inserting after section 312 as so redesignated the following new sections  sec 313 federal insurance office  a establishment there is established within the department of the treasury the federal insurance office   b leadership the office shall be headed by a director, who shall be appointed by the secretary of the treasury the position of director shall be a career reserved position in the senior executive service, as that position is defined under section 3132 of title 5, united states code   c functions  1 authority pursuant to direction of secretary the office, pursuant to the direction of the secretary, shall have the authority  a to monitor all aspects of the insurance industry, including identifying issues or gaps in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the united states financial system   b to monitor the extent to which traditionally underserved communities and consumers, minorities as such term is defined in section 1204 c of the financial institutions reform, recovery, and enforcement act of 1989 12 usc 1811 note , and low- and moderate-income persons have access to affordable insurance products regarding all lines of insurance, except health insurance   c to recommend to the financial stability oversight council that it designate an insurer, including the affiliates of such insurer, as an entity subject to regulation as a nonbank financial company supervised by the board of governors pursuant to title i of the dodd-frank wall street reform and consumer protection act   d to assist the secretary in administering the terrorism insurance program established in the department of the treasury under the terrorism risk insurance act of 2002 15 usc 6701 note   e to coordinate federal efforts and develop federal policy on prudential aspects of international insurance matters, including representing the united states, as appropriate, in the international association of insurance supervisors or a successor entity and assisting the secretary in negotiating covered agreements as such term is defined in subsection r   f to determine, in accordance with subsection f , whether state insurance measures are preempted by covered agreements   g to consult with the states including state insurance regulators regarding insurance matters of national importance and prudential insurance matters of international importance and   h to perform such other related duties and authorities as may be assigned to the office by the secretary    2 advisory functions the office shall advise the secretary on major domestic and prudential international insurance policy issues   3 advisory capacity on council the director shall serve in an advisory capacity on the financial stability oversight council established under the financial stability act of 2010    d scope the authority of the office shall extend to all lines of insurance except  1 health insurance, as determined by the secretary in coordination with the secretary of health and human services based on section 2791 of the public health service act 42 usc 300gg91   2 long-term care insurance, except long-term care insurance that is included with life or annuity insurance components, as determined by the secretary in coordination with the secretary of health and human services, and in the case of long-term care insurance that is included with such components, the secretary shall coordinate with the secretary of health and human services in performing the functions of the office and   3 crop insurance, as established by the federal crop insurance act 7 usc 1501 et seq    e gathering of information  1 in general in carrying out the functions required under subsection c , the office may  a receive and collect data and information on and from the insurance industry and insurers   b enter into information-sharing agreements   c analyze and disseminate data and information and   d issue reports regarding all lines of insurance except health insurance    2 collection of information from insurers and affiliates  a in general except as provided in paragraph 3 , the office may require an insurer, or any affiliate of an insurer, to submit such data or information as the office may reasonably require in carrying out the functions described under subsection c   b rule of construction notwithstanding any other provision of this section, for purposes of subparagraph a , the term insurer means any entity that writes insurance or reinsures risks and issues contracts or policies in 1 or more states    3 exception for small insurers paragraph 2 shall not apply with respect to any insurer or affiliate thereof that meets a minimum size threshold that the office may establish, whether by order or rule   4 advance coordination before collecting any data or information under paragraph 2 from an insurer, or affiliate of an insurer, the office shall coordinate with each relevant federal agency and state insurance regulator or other relevant federal or state regulatory agency, if any, in the case of an affiliate of an insurer and any publicly available sources to determine if the information to be collected is available from, and may be obtained in a timely manner by, such federal agency or state insurance regulator, individually or collectively, other regulatory agency, or publicly available sources if the director determines that such data or information is available, and may be obtained in a timely manner, from such an agency, regulator, regulatory agency, or source, the director shall obtain the data or information from such agency, regulator, regulatory agency, or source if the director determines that such data or information is not so available, the director may collect such data or information from an insurer or affiliate only if the director complies with the requirements of subchapter i of chapter 35 of title 44, united states code relating to federal information policy commonly known as the paperwork reduction act , in collecting such data or information notwithstanding any other provision of law, each such relevant federal agency and state insurance regulator or other federal or state regulatory agency is authorized to provide to the office such data or information   5 confidentiality  a retention of privilege the submission of any nonpublicly available data and information to the office under this subsection shall not constitute a waiver of, or otherwise affect, any privilege arising under federal or state law including the rules of any federal or state court to which the data or information is otherwise subject   b continued application of prior confidentiality agreements any requirement under federal or state law to the extent otherwise applicable, or any requirement pursuant to a written agreement in effect between the original source of any nonpublicly available data or information and the source of such data or information to the office, regarding the privacy or confidentiality of any data or information in the possession of the source to the office, shall continue to apply to such data or information after the data or information has been provided pursuant to this subsection to the office   c information-sharing agreement any data or information obtained by the office may be made available to state insurance regulators, individually or collectively, through an information-sharing agreement that  i shall comply with applicable federal law and   ii shall not constitute a waiver of, or otherwise affect, any privilege under federal or state law including the rules of any federal or state court to which the data or information is otherwise subject    d agency disclosure requirements section 552 of title 5, united states code, shall apply to any data or information submitted to the office by an insurer or an affiliate of an insurer    6 subpoenas and enforcement the director shall have the power to require by subpoena the production of the data or information requested under paragraph 2 , but only upon a written finding by the director that such data or information is required to carry out the functions described under subsection c and that the office has coordinated with such regulator or agency as required under paragraph 4 subpoenas shall bear the signature of the director and shall be served by any person or class of persons designated by the director for that purpose in the case of contumacy or failure to obey a subpoena, the subpoena shall be enforceable by order of any appropriate district court of the united states any failure to obey the order of the court may be punished by the court as a contempt of court    f preemption of state insurance measures  1 standard a state insurance measure shall be preempted pursuant to this section or section 314 if, and only to the extent that the director determines, in accordance with this subsection, that the measure  a results in less favorable treatment of a non-united states insurer domiciled in a foreign jurisdiction that is subject to a covered agreement than a united states insurer domiciled, licensed, or otherwise admitted in that state and   b is inconsistent with a covered agreement    2 determination  a notice of potential inconsistency before making any determination under paragraph 1 , the director shall  i notify and consult with the appropriate state regarding any potential inconsistency or preemption   ii notify and consult with the united states trade representative regarding any potential inconsistency or preemption   iii cause to be published in the federal register notice of the issue regarding the potential inconsistency or preemption, including a description of each state insurance measure at issue and any applicable covered agreement   iv provide interested parties a reasonable opportunity to submit written comments to the office and   v consider any comments received    b scope of review for purposes of this subsection, any determination of the director regarding state insurance measures, and any preemption under paragraph 1 as a result of such determination, shall be limited to the subject matter contained within the covered agreement involved and shall achieve a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under state insurance or reinsurance regulation   c notice of determination of inconsistency upon making any determination under paragraph 1 , the director shall  i notify the appropriate state of the determination and the extent of the inconsistency   ii establish a reasonable period of time, which shall not be less than 30 days, before the determination shall become effective and   iii notify the committees on financial services and ways and means of the house of representatives and the committees on banking, housing, and urban affairs and finance of the senate     3 notice of effectiveness upon the conclusion of the period referred to in paragraph 2 c ii , if the basis for such determination still exists, the determination shall become effective and the director shall  a cause to be published a notice in the federal register that the preemption has become effective, as well as the effective date and   b notify the appropriate state    4 limitation no state may enforce a state insurance measure to the extent that such measure has been preempted under this subsection    g applicability of administrative procedures act determinations of inconsistency made pursuant to subsection f 2 shall be subject to the applicable provisions of subchapter ii of chapter 5 of title 5, united states code relating to administrative procedure , and chapter 7 of such title relating to judicial review , except that in any action for judicial review of a determination of inconsistency, the court shall determine the matter de novo   h regulations, policies, and procedures the secretary may issue orders, regulations, policies, and procedures to implement this section   i consultation the director shall consult with state insurance regulators, individually or collectively, to the extent the director determines appropriate, in carrying out the functions of the office   j savings provisions nothing in this section shall  1 preempt  a any state insurance measure that governs any insurers rates, premiums, underwriting, or sales practices   b any state coverage requirements for insurance   c the application of the antitrust laws of any state to the business of insurance or   d any state insurance measure governing the capital or solvency of an insurer, except to the extent that such state insurance measure results in less favorable treatment of a non-united state insurer than a united states insurer    2 be construed to alter, amend, or limit any provision of the consumer financial protection agency act of 2010 or   3 affect the preemption of any state insurance measure otherwise inconsistent with and preempted by federal law    k retention of existing state regulatory authority nothing in this section or section 314 shall be construed to establish or provide the office or the department of the treasury with general supervisory or regulatory authority over the business of insurance   l retention of authority of federal financial regulatory agencies nothing in this section or section 314 shall be construed to limit the authority of any federal financial regulatory agency, including the authority to develop and coordinate policy, negotiate, and enter into agreements with foreign governments, authorities, regulators, and multinational regulatory committees and to preempt state measures to affect uniformity with international regulatory agreements   m retention of authority of united states trade representative nothing in this section or section 314 shall be construed to affect the authority of the office of the united states trade representative pursuant to section 141 of the trade act of 1974 19 usc 2171 or any other provision of law, including authority over the development and coordination of united states international trade policy and the administration of the united states trade agreements program   n annual reports to congress  1 section 313 f reports beginning september 30, 2011, the director shall submit a report on or before september 30 of each calendar year to the president and to the committees on financial services and ways and means of the house of representatives and the committees on banking, housing, and urban affairs and finance of the senate on any actions taken by the office pursuant to subsection f regarding preemption of inconsistent state insurance measures   2 insurance industry beginning september 30, 2011, the director shall submit a report on or before september 30 of each calendar year to the president and to the committee on financial services of the house of representatives and the committee on banking, housing, and urban affairs of the senate on the insurance industry and any other information as deemed relevant by the director or requested by such committees    o reports on us and global reinsurance market the director shall submit to the committee on financial services of the house of representatives and the committee on banking, housing, and urban affairs of the senate  1 a report received not later than september 30, 2012, describing the breadth and scope of the global reinsurance market and the critical role such market plays in supporting insurance in the united states and   2 a report received not later than january 1, 2013, and updated not later than january 1, 2015, describing the impact of part ii of the nonadmitted and reinsurance reform act of 2010 on the ability of state regulators to access reinsurance information for regulated companies in their jurisdictions    p study and report on regulation of insurance  1 in general not later than 18 months after the date of enactment of this section, the director shall conduct a study and submit a report to congress on how to modernize and improve the system of insurance regulation in the united states   2 considerations the study and report required under paragraph 1 shall be based on and guided by the following considerations  a systemic risk regulation with respect to insurance   b capital standards and the relationship between capital allocation and liabilities, including standards relating to liquidity and duration risk   c consumer protection for insurance products and practices, including gaps in state regulation   d the degree of national uniformity of state insurance regulation   e the regulation of insurance companies and affiliates on a consolidated basis   f international coordination of insurance regulation    3 additional factors the study and report required under paragraph 1 shall also examine the following factors  a the costs and benefits of potential federal regulation of insurance across various lines of insurance except health insurance   b the feasibility of regulating only certain lines of insurance at the federal level, while leaving other lines of insurance to be regulated at the state level   c the ability of any potential federal regulation or federal regulators to eliminate or minimize regulatory arbitrage   d the impact that developments in the regulation of insurance in foreign jurisdictions might have on the potential federal regulation of insurance   e the ability of any potential federal regulation or federal regulator to provide robust consumer protection for policyholders   f the potential consequences of subjecting insurance companies to a federal resolution authority, including the effects of any federal resolution authority  i on the operation of state insurance guaranty fund systems, including the loss of guaranty fund coverage if an insurance company is subject to a federal resolution authority   ii on policyholder protection, including the loss of the priority status of policyholder claims over other unsecured general creditor claims   iii in the case of life insurance companies, on the loss of the special status of separate account assets and separate account liabilities and   iv on the international competitiveness of insurance companies    g such other factors as the director determines necessary or appropriate, consistent with the principles set forth in paragraph 2    4 required recommendations the study and report required under paragraph 1 shall also contain any legislative, administrative, or regulatory recommendations, as the director determines appropriate, to carry out or effectuate the findings set forth in such report   5 consultation with respect to the study and report required under paragraph 1 , the director shall consult with the state insurance regulators, consumer organizations, representatives of the insurance industry and policyholders, and other organizations and experts, as appropriate    q use of existing resources to carry out this section, the office may employ personnel, facilities, and any other resource of the department of the treasury available to the secretary and the secretary shall dedicate specific personnel to the office   r definitions in this section and section 314, the following definitions shall apply  1 affiliate the term affiliate means, with respect to an insurer, any person who controls, is controlled by, or is under common control with the insurer   2 covered agreement the term covered agreement means a written bilateral or multilateral agreement regarding prudential measures with respect to the business of insurance or reinsurance that  a is entered into between the united states and one or more foreign governments, authorities, or regulatory entities and   b relates to the recognition of prudential measures with respect to the business of insurance or reinsurance that achieves a level of protection for insurance or reinsurance consumers that is substantially equivalent to the level of protection achieved under state insurance or reinsurance regulation    3 insurer the term insurer means any person engaged in the business of insurance, including reinsurance   4 federal financial regulatory agency the term federal financial regulatory agency means the department of the treasury, the board of governors of the federal reserve system, the office of the comptroller of the currency, the office of thrift supervision, the securities and exchange commission, the commodity futures trading commission, the federal deposit insurance corporation, the federal housing finance agency, or the national credit union administration   5 non-united states insurer the term non-united states insurer means an insurer that is organized under the laws of a jurisdiction other than a state, but does not include any united states branch of such an insurer   6 office the term office means the federal insurance office established by this section   7 state insurance measure the term state insurance measure means any state law, regulation, administrative ruling, bulletin, guideline, or practice relating to or affecting prudential measures applicable to insurance or reinsurance   8 state insurance regulator the term state insurance regulator means any state regulatory authority responsible for the supervision of insurers   9 substantially equivalent to the level of protection achieved the term substantially equivalent to the level of protection achieved means the prudential measures of a foreign government, authority, or regulatory entity achieve a similar outcome in consumer protection as the outcome achieved under state insurance or reinsurance regulation   10 united states insurer the term united states insurer means  a an insurer that is organized under the laws of a state or   b a united states branch of a non-united states insurer     s authorization of appropriations there are authorized to be appropriated for the office for each fiscal year such sums as may be necessary    sec 314 covered agreements  a authority the secretary and the united states trade representative are authorized, jointly, to negotiate and enter into covered agreements on behalf of the united states   b requirements for consultation with congress  1 in general before initiating negotiations to enter into a covered agreement under subsection a , during such negotiations, and before entering into any such agreement, the secretary and the united states trade representative shall jointly consult with the committee on financial services and the committee on ways and means of the house of representatives and the committee on banking, housing, and urban affairs and the committee on finance of the senate   2 scope the consultation described in paragraph 1 shall include consultation with respect to  a the nature of the agreement   b how and to what extent the agreement will achieve the applicable purposes, policies, priorities, and objectives of section 313 and this section and   c the implementation of the agreement, including the general effect of the agreement on existing state laws     c submission and layover provisions a covered agreement under subsection a may enter into force with respect to the united states only if  1 the secretary and the united states trade representative jointly submit to the congressional committees specified in subsection b 1 , on a day on which both houses of congress are in session, a copy of the final legal text of the agreement and   2 a period of 90 calendar days beginning on the date on which the copy of the final legal text of the agreement is submitted to the congressional committees under paragraph 1 has expired        b duties of secretary section 321 a of title 31, united states code, is amended  1 in paragraph 7 , by striking and and inserting a semicolon   2 in paragraph 8 c , by striking the period at the end and inserting and and   3 by adding at the end the following new paragraph  9 advise the president on major domestic and international prudential policy issues in connection with all lines of insurance except health insurance      c clerical amendment the table of sections for subchapter i of chapter 3 of title 31, united states code, is amended by striking the item relating to section 312 and inserting the following new items      subtitle b state-based insurance reform  sec 511 short title  this subtitle may be cited as the nonadmitted and reinsurance reform act of 2010    sec 512 effective date  except as otherwise specifically provided in this subtitle, this subtitle shall take effect upon the expiration of the 12-month period beginning on the date of the enactment of this subtitle    part i nonadmitted insurance  sec 521 reporting, payment, and allocation of premium taxes  a home states exclusive authority no state other than the home state of an insured may require any premium tax payment for nonadmitted insurance   b allocation of nonadmitted premium taxes  1 in general the states may enter into a compact or otherwise establish procedures to allocate among the states the premium taxes paid to an insureds home state described in subsection a   2 effective date except as expressly otherwise provided in such compact or other procedures, any such compact or other procedures  a if adopted on or before the expiration of the 330-day period that begins on the date of the enactment of this subtitle, shall apply to any premium taxes that, on or after such date of enactment, are required to be paid to any state that is subject to such compact or procedures and   b if adopted after the expiration of such 330-day period, shall apply to any premium taxes that, on or after january 1 of the first calendar year that begins after the expiration of such 330-day period, are required to be paid to any state that is subject to such compact or procedures    3 report upon the expiration of the 330-day period referred to in paragraph 2 , the naic may submit a report to the committee on financial services and the committee on the judiciary of the house of representatives and the committee on banking, housing, and urban affairs of the senate identifying and describing any compact or other procedures for allocation among the states of premium taxes that have been adopted during such period by any states   4 nationwide system the congress intends that each state adopt nationwide uniform requirements, forms, and procedures, such as an interstate compact, that provide for the reporting, payment, collection, and allocation of premium taxes for nonadmitted insurance consistent with this section    c allocation based on tax allocation report to facilitate the payment of premium taxes among the states, an insureds home state may require surplus lines brokers and insureds who have independently procured insurance to annually file tax allocation reports with the insureds home state detailing the portion of the nonadmitted insurance policy premium or premiums attributable to properties, risks, or exposures located in each state the filing of a nonadmitted insurance tax allocation report and the payment of tax may be made by a person authorized by the insured to act as its agent    sec 522 regulation of nonadmitted insurance by insureds home state  a home state authority except as otherwise provided in this section, the placement of nonadmitted insurance shall be subject to the statutory and regulatory requirements solely of the insureds home state   b broker licensing no state other than an insureds home state may require a surplus lines broker to be licensed in order to sell, solicit, or negotiate nonadmitted insurance with respect to such insured   c enforcement provision with respect to section 521 and subsections a and b of this section, any law, regulation, provision, or action of any state that applies or purports to apply to nonadmitted insurance sold to, solicited by, or negotiated with an insured whose home state is another state shall be preempted with respect to such application   d workers compensation exception this section may not be construed to preempt any state law, rule, or regulation that restricts the placement of workers compensation insurance or excess insurance for self-funded workers compensation plans with a nonadmitted insurer    sec 523 participation in national producer database  after the expiration of the 2-year period beginning on the date of the enactment of this subtitle, a state may not collect any fees relating to licensing of an individual or entity as a surplus lines broker in the state unless the state has in effect at such time laws or regulations that provide for participation by the state in the national insurance producer database of the naic, or any other equivalent uniform national database, for the licensure of surplus lines brokers and the renewal of such licenses    sec 524 uniform standards for surplus lines eligibility  a state may not  1 impose eligibility requirements on, or otherwise establish eligibility criteria for, nonadmitted insurers domiciled in a united states jurisdiction, except in conformance with such requirements and criteria in sections 5a 2 and 5c 2 a of the non-admitted insurance model act, unless the state has adopted nationwide uniform requirements, forms, and procedures developed in accordance with section 521 b of this subtitle that include alternative nationwide uniform eligibility requirements or   2 prohibit a surplus lines broker from placing nonadmitted insurance with, or procuring nonadmitted insurance from, a nonadmitted insurer domiciled outside the united states that is listed on the quarterly listing of alien insurers maintained by the international insurers department of the naic     sec 525 streamlined application for commercial purchasers  a surplus lines broker seeking to procure or place nonadmitted insurance in a state for an exempt commercial purchaser shall not be required to satisfy any state requirement to make a due diligence search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from admitted insurers if  1 the broker procuring or placing the surplus lines insurance has disclosed to the exempt commercial purchaser that such insurance may or may not be available from the admitted market that may provide greater protection with more regulatory oversight and   2 the exempt commercial purchaser has subsequently requested in writing the broker to procure or place such insurance from a nonadmitted insurer     sec 526 gao study of nonadmitted insurance market  a in general the comptroller general of the united states shall conduct a study of the nonadmitted insurance market to determine the effect of the enactment of this part on the size and market share of the nonadmitted insurance market for providing coverage typically provided by the admitted insurance market   b contents the study shall determine and analyze  1 the change in the size and market share of the nonadmitted insurance market and in the number of insurance companies and insurance holding companies providing such business in the 18-month period that begins upon the effective date of this subtitle   2 the extent to which insurance coverage typically provided by the admitted insurance market has shifted to the nonadmitted insurance market   3 the consequences of any change in the size and market share of the nonadmitted insurance market, including differences in the price and availability of coverage available in both the admitted and nonadmitted insurance markets   4 the extent to which insurance companies and insurance holding companies that provide both admitted and nonadmitted insurance have experienced shifts in the volume of business between admitted and nonadmitted insurance and   5 the extent to which there has been a change in the number of individuals who have nonadmitted insurance policies, the type of coverage provided under such policies, and whether such coverage is available in the admitted insurance market    c consultation with naic in conducting the study under this section, the comptroller general shall consult with the naic   d report the comptroller general shall complete the study under this section and submit a report to the committee on banking, housing, and urban affairs of the senate and the committee on financial services of the house of representatives regarding the findings of the study not later than 30 months after the effective date of this subtitle    sec 527 definitions  for purposes of this part, the following definitions shall apply  1 admitted insurer the term admitted insurer means, with respect to a state, an insurer licensed to engage in the business of insurance in such state   2 affiliate the term affiliate means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured   3 affiliated group the term affiliated group means any group of entities that are all affiliated   4 control an entity has control over another entity if  a the entity directly or indirectly or acting through 1 or more other persons owns, controls, or has the power to vote 25 percent or more of any class of voting securities of the other entity or   b the entity controls in any manner the election of a majority of the directors or trustees of the other entity    5 exempt commercial purchaser the term exempt commercial purchaser means any person purchasing commercial insurance that, at the time of placement, meets the following requirements  a the person employs or retains a qualified risk manager to negotiate insurance coverage   b the person has paid aggregate nationwide commercial property and casualty insurance premiums in excess of $100,000 in the immediately preceding 12 months   c  i the person meets at least 1 of the following criteria  i the person possesses a net worth in excess of $20,000,000, as such amount is adjusted pursuant to clause ii   ii the person generates annual revenues in excess of $50,000,000, as such amount is adjusted pursuant to clause ii   iii the person employs more than 500 full-time or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than 1,000 employees in the aggregate   iv the person is a not-for-profit organization or public entity generating annual budgeted expenditures of at least $30,000,000, as such amount is adjusted pursuant to clause ii   v the person is a municipality with a population in excess of 50,000 persons    ii effective on the fifth january 1 occurring after the date of the enactment of this subtitle and each fifth january 1 occurring thereafter, the amounts in subclauses i , ii , and iv of clause i shall be adjusted to reflect the percentage change for such 5-year period in the consumer price index for all urban consumers published by the bureau of labor statistics of the department of labor     6 home state  a in general except as provided in subparagraph b , the term home state means, with respect to an insured  i the state in which an insured maintains its principal place of business or, in the case of an individual, the individuals principal residence or   ii if 100 percent of the insured risk is located out of the state referred to in clause i , the state to which the greatest percentage of the insureds taxable premium for that insurance contract is allocated    b affiliated groups if more than 1 insured from an affiliated group are named insureds on a single nonadmitted insurance contract, the term home state means the home state, as determined pursuant to subparagraph a , of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract    7 independently procured insurance the term independently procured insurance means insurance procured directly by an insured from a nonadmitted insurer   8 naic the term naic means the national association of insurance commissioners or any successor entity   9 nonadmitted insurance the term nonadmitted insurance means any property and casualty insurance permitted to be placed directly or through a surplus lines broker with a nonadmitted insurer eligible to accept such insurance   10 non-admitted insurance model act the term non-admitted insurance model act means the provisions of the non-admitted insurance model act, as adopted by the naic on august 3, 1994, and amended on september 30, 1996, december 6, 1997, october 2, 1999, and june 8, 2002   11 nonadmitted insurer the term nonadmitted insurer  a means, with respect to a state, an insurer not licensed to engage in the business of insurance in such state but   b does not include a risk retention group, as that term is defined in section 2 a 4 of the liability risk retention act of 1986 15 usc 3901 a 4    12 premium tax the term premium tax means, with respect to surplus lines or independently procured insurance coverage, any tax, fee, assessment, or other charge imposed by a government entity directly or indirectly based on any payment made as consideration for an insurance contract for such insurance, including premium deposits, assessments, registration fees, and any other compensation given in consideration for a contract of insurance   13 qualified risk manager the term qualified risk manager means, with respect to a policyholder of commercial insurance, a person who meets all of the following requirements  a the person is an employee of, or third-party consultant retained by, the commercial policyholder   b the person provides skilled services in loss prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance   c the person  i  i has a bachelors degree or higher from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management and   ii  aa has 3 years of experience in risk financing, claims administration, loss prevention, risk and insurance analysis, or purchasing commercial lines of insurance or   bb has  ex11 > aa a designation as a chartered property and casualty underwriter in this subparagraph referred to as cpcu issued by the american institute for cpcu/insurance institute of america   ex11 > bb a designation as an associate in risk management arm issued by the american institute for cpcu/insurance institute of america   ex11 > cc a designation as certified risk manager crm issued by the national alliance for insurance education & research   ex11 > dd a designation as a rims fellow rf issued by the global risk management institute or   ex11 > ee any other designation, certification, or license determined by a state insurance commissioner or other state insurance regulatory official or entity to demonstrate minimum competency in risk management      ii  i has at least 7 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance and   ii has any 1 of the designations specified in subitems aa through ee of clause i ii bb    iii has at least 10 years of experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance or   iv has a graduate degree from an accredited college or university in risk management, business administration, finance, economics, or any other field determined by a state insurance commissioner or other state regulatory official or entity to demonstrate minimum competence in risk management     14 reinsurance the term reinsurance means the assumption by an insurer of all or part of a risk undertaken originally by another insurer   15 surplus lines broker the term surplus lines broker means an individual, firm, or corporation which is licensed in a state to sell, solicit, or negotiate insurance on properties, risks, or exposures located or to be performed in a state with nonadmitted insurers   16 state the term state includes any state of the united states, the district of columbia, the commonwealth of puerto rico, guam, the northern mariana islands, the virgin islands, and american samoa      part ii reinsurance  sec 531 regulation of credit for reinsurance and reinsurance agreements  a credit for reinsurance if the state of domicile of a ceding insurer is an naic-accredited state, or has financial solvency requirements substantially similar to the requirements necessary for naic accreditation, and recognizes credit for reinsurance for the insurers ceded risk, then no other state may deny such credit for reinsurance   b additional preemption of extraterritorial application of state law in addition to the application of subsection a , all laws, regulations, provisions, or other actions of a state that is not the domiciliary state of the ceding insurer, except those with respect to taxes and assessments on insurance companies or insurance income, are preempted to the extent that they  1 restrict or eliminate the rights of the ceding insurer or the assuming insurer to resolve disputes pursuant to contractual arbitration to the extent such contractual provision is not inconsistent with the provisions of title 9, united states code   2 require that a certain states law shall govern the reinsurance contract, disputes arising from the reinsurance contract, or requirements of the reinsurance contract   3 attempt to enforce a reinsurance contract on terms different than those set forth in the reinsurance contract, to the extent that the terms are not inconsistent with this part or   4 otherwise apply the laws of the state to reinsurance agreements of ceding insurers not domiciled in that state     sec 532 regulation of reinsurer solvency  a domiciliary state regulation if the state of domicile of a reinsurer is an naic-accredited state or has financial solvency requirements substantially similar to the requirements necessary for naic accreditation, such state shall be solely responsible for regulating the financial solvency of the reinsurer   b nondomiciliary states  1 limitation on financial information requirements if the state of domicile of a reinsurer is an naic-accredited state or has financial solvency requirements substantially similar to the requirements necessary for naic accreditation, no other state may require the reinsurer to provide any additional financial information other than the information the reinsurer is required to file with its domiciliary state   2 receipt of information no provision of this section shall be construed as preventing or prohibiting a state that is not the state of domicile of a reinsurer from receiving a copy of any financial statement filed with its domiciliary state     sec 533 definitions  for purposes of this part, the following definitions shall apply  1 ceding insurer the term ceding insurer means an insurer that purchases reinsurance   2 domiciliary state the terms state of domicile and domiciliary state mean, with respect to an insurer or reinsurer, the state in which the insurer or reinsurer is incorporated or entered through, and licensed   3 naic the term naic means the national association of insurance commissioners or any successor entity   4 reinsurance the term reinsurance means the assumption by an insurer of all or part of a risk undertaken originally by another insurer   5 reinsurer  a in general the term reinsurer means an insurer to the extent that the insurer  i is principally engaged in the business of reinsurance   ii does not conduct significant amounts of direct insurance as a percentage of its net premiums and   iii is not engaged in an ongoing basis in the business of soliciting direct insurance    b determination a determination of whether an insurer is a reinsurer shall be made under the laws of the state of domicile in accordance with this paragraph    6 state the term state includes any state of the united states, the district of columbia, the commonwealth of puerto rico, guam, the northern mariana islands, the virgin islands, and american samoa      part iii rule of construction  sec 541 rule of construction  nothing in this subtitle or the amendments made by this subtitle shall be construed to modify, impair, or supersede the application of the antitrust laws any implied or actual conflict between this subtitle and any amendments to this subtitle and the antitrust laws shall be resolved in favor of the operation of the antitrust laws    sec 542 severability  if any section or subsection of this subtitle, or any application of such provision to any person or circumstance, is held to be unconstitutional, the remainder of this subtitle, and the application of the provision to any other person or circumstance, shall not be affected      