---
kind: "section"
citation: "15 U.S.C. § 6754"
title: "15"
title_heading: "Commerce and Trade"
number: "6754"
heading: "Board of directors"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/6754"
units:
  - "Chapter 93 — Insurance"
  - "Subchapter III — National Association of Registered Agents and Brokers"
---

# §6754. Board of directors

- (a) **Establishment—** There is established a board of directors of the Association, which shall have authority to govern and supervise all activities of the Association.
- (b) **Powers—** The Board shall have such of the powers and authority of the Association as may be specified in the bylaws of the Association.[^1]
- (c) **Composition—**
  - (1) **In general—** The Board shall consist of 13 members who shall be appointed by the President, by and with the advice and consent of the Senate, in accordance with the procedures established under Senate Resolution 116 of the 112th Congress, of whom—
    - (A) 8 shall be [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioners appointed in the manner provided in [paragraph (2)](#c-2), 1 of whom shall be designated by the President to serve as the chairperson of the Board until the Board elects one such [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner Board member to serve as the chairperson of the Board;
    - (B) 3 shall have demonstrated expertise and experience with property and casualty [insurance producer](/usc/15/6764.md?p=5) licensing; and
    - (C) 2 shall have demonstrated expertise and experience with life or health [insurance producer](/usc/15/6764.md?p=5) licensing.
  - (2) **State insurance regulator representatives—**
    - (A) **Recommendations—** Before making any appointments pursuant to [paragraph (1)(A)](#c-1-A), the President shall request a list of recommended candidates from the [States](/usc/15/6764.md?p=9) through the NAIC, which shall not be binding on the President. If the NAIC fails to submit a list of recommendations not later than 15 business days after the date of the request, the President may make the requisite appointments without considering the views of the NAIC.
    - (B) **Political affiliation—** Not more than 4 Board members appointed under [paragraph (1)(A)](#c-1-A) shall belong to the same political party.
    - (C) **Former State insurance commissioners—**
      - (i) **In general—** If, after offering each currently serving [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner an appointment to the Board, fewer than 8 [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioners have accepted appointment to the Board, the President may appoint the remaining [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner Board members, as required under [paragraph (1)(A)](#c-1-A), of the appropriate political party as required under [subparagraph (B)](#c-2-B), from among individuals who are former [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioners.
      - (ii) **Limitation—** A former [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner appointed as described in [clause (i)](#c-2-C-i) may not be employed by or have any present direct or indirect financial interest in any [insurer](/usc/15/6764.md?p=6), [insurance producer](/usc/15/6764.md?p=5), or other entity in the [insurance](/usc/15/6764.md?p=4) industry, other than direct or indirect ownership of, or beneficial interest in, an [insurance](/usc/15/6764.md?p=4) policy or annuity contract written or sold by an [insurer](/usc/15/6764.md?p=6).
    - (D) **Service through term—** If a Board member appointed under [paragraph (1)(A)](#c-1-A) ceases to be a [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner during the term of the Board member, the Board member shall cease to be a Board member.
  - (3) **Private sector representatives—** In making any appointment pursuant to subparagraph [(B)](#c-1-B) or [(C)](#c-1-C) of paragraph (1), the President may seek recommendations for candidates from groups representing the category of individuals described, which shall not be binding on the President.
  - (4) **State insurance commissioner defined—** For purposes of this subsection, the term “[State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner” means a [person](/usc/15/6735.md?p=7) who serves in the position in [State](/usc/15/6764.md?p=9) government, or on the board, commission, or other body that is the primary [insurance](/usc/15/6764.md?p=4) regulatory authority for the [State](/usc/15/6764.md?p=9).
- (d) **Terms—**
  - (1) **In general—** Except as provided under [paragraph (2)](#d-2), the term of service for each Board member shall be 2 years.
  - (2) **Exceptions—**
    - (A) **1-year terms—** The term of service shall be 1 year, as designated by the President at the time of the nomination of the subject Board members for—
      - (i) 4 of the [State](/usc/15/6764.md?p=9) [insurance](/usc/15/6764.md?p=4) commissioner Board members initially appointed under paragraph (1)(A),[^2] of whom not more than 2 shall belong to the same political party;
      - (ii) 1 of the Board members initially appointed under paragraph (1)(B);[^3] and
      - (iii) 1 of the Board members initially appointed under paragraph (1)(C).[^4]
    - (B) **Expiration of term—** A Board member may continue to serve after the expiration of the term to which the Board member was appointed for the earlier of 2 years or until a successor is appointed.
    - (C) **Mid-term appointments—** A Board member appointed to fill a vacancy occurring before the expiration of the term for which the predecessor of the Board member was appointed shall be appointed only for the remainder of that term.
  - (3) **Successive terms—** Board members may be reappointed to successive terms.
- (e) **Initial appointments—** The appointment of initial Board members shall be made no later than 90 days after January 12, 2015.
- (f) **Meetings—**
  - (1) **In general—** The Board shall meet—
    - (A) at the call of the chairperson;
    - (B) as requested in writing to the chairperson by not fewer than 5 Board members; or
    - (C) as otherwise provided by the bylaws of the Association.
  - (2) **Quorum required—** A majority of all Board members shall constitute a quorum.
  - (3) **Voting—** Decisions of the Board shall require the approval of a majority of all Board members present at a meeting, a quorum being present.
  - (4) **Initial meeting—** The Board shall hold its first meeting not later than 45 days after the date on which all initial Board members have been appointed.
- (g) **Restriction on confidential information—** Board members appointed pursuant to subparagraphs [(B)](#c-1-B) and [(C)](#c-1-C) of subsection (c)(1) shall not have access to confidential information received by the Association in connection with complaints, investigations, or disciplinary proceedings involving [insurance producers](/usc/15/6764.md?p=5).
- (h) **Ethics and conflicts of interest—** The Board shall issue and enforce an ethical conduct code to address permissible and prohibited activities of Board members and Association officers, employees, agents, or consultants. The code shall, at a minimum, include provisions that prohibit any Board member or Association officer, employee, agent or consultant from—
  - (1) engaging in unethical conduct in the course of performing Association duties;
  - (2) participating in the making or influencing the making of any Association decision, the outcome of which the Board member, officer, employee, agent, or consultant knows or had reason to know would have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the [person](/usc/15/6735.md?p=7) or a member of the immediate family of the [person](/usc/15/6735.md?p=7);
  - (3) accepting any gift from any [person](/usc/15/6735.md?p=7) or entity other than the Association that is given because of the position held by the [person](/usc/15/6735.md?p=7) in the Association;
  - (4) making political contributions to any [person](/usc/15/6735.md?p=7) or entity on behalf of the Association; and
  - (5) lobbying or paying a [person](/usc/15/6735.md?p=7) to lobby on behalf of the Association.
- (i) **Compensation—**
  - (1) **In general—** Except as provided in [paragraph (2)](#i-2), no Board member may receive any compensation from the Association or any other [person](/usc/15/6735.md?p=7) or entity on account of Board membership.
  - (2) **Travel expenses and per diem—** Board members may be reimbursed only by the Association for travel expenses, including per diem in lieu of subsistence, at rates consistent with rates authorized for employees of Federal agencies under subchapter I of [chapter 57](/usc/5/chptIII/sptD/ch57.md) of title 5, while away from home or regular places of business in performance of services for the Association.

## Footnotes

[^1]: So in original. Probably should be “such powers and authority as may be specified in the bylaws of the Association.”
[^2]: So in original. Probably should be “paragraph (1)(A) of subsection (c),”.
[^3]: So in original. Probably should be “paragraph (1)(B) of subsection (c);”.
[^4]: So in original. Probably should be “paragraph (1)(C) of subsection (c).”

## Source credit

(Pub. L. 106–102, title III, § 324, as added Pub. L. 114–1, title II, § 202(a), Jan. 12, 2015, 129 Stat. 20.)

## Notes

### Editorial Notes

### References in Text

Senate Resolution 116 of the 112th Congress, referred to in subsec. (c)(1), which was agreed to June 29, 2011, provided for expedited Senate consideration of certain nominations subject to advice and consent.

### Prior Provisions

Provisions similar to this section were contained in section 6756 of this title, prior to the general amendment of this subchapter by Pub. L. 114–1.

A prior section 6754, Pub. L. 106–102, title III, § 324, Nov. 12, 1999, 113 Stat. 1424, related to relationship to the Federal Government, prior to the general amendment of this subchapter by Pub. L. 114–1.