Authorization for Criminal History Record Check

Draft: 3/05/03

New Model

The NAIC solicits comments on this model. Comments should be submitted in an electronic format to Tim Mullen at

AUTHORIZATION FOR CRIMINAL HISTORY RECORD CHECK

Table of Contents

Section 1.Purpose

Section 2. Definitions

Section 3.Submission of Personal Information

Section 4.Authorization to Require Fingerprints

Section 5.Receipt of Criminal History Information

Section 6.Regulations

Section 7.Severability

Section 8.Effective Date

Section 1.Purpose

The purpose of this Act is to set forth the requirements for states to obtain access to the Federal Bureau of Investigation (FBI) criminal history record information as permitted by the Related Agencies Appropriation Act, Public Law 92-544, 86 Stat. 1115, as it pertains to all insurance entities of this state.

Section 2.Definitions

When used in this Act:

A.“Business Entity” means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

B.“Insurance Commissioner” means the official in a state that is primarily responsible for regulation of the business of insurance.

C.“Insurance Entity" means a person that is an applicant for a license, or authorization or registration issued by the Insurance Commissioner; or, a licensed insurer, producer, or other person licensed or required to be licensed, or authorized or required to be authorized, or registered or required to be registered pursuant to the Insurance Law of this state; and, as it pertains to a business entity its officers, directors, and members.

D.“Member” means a person that holds an ownership interest in a business entity, excluding any interest in publicly traded securities and any interest of less than ten percent of the voting rights.

E."Person" means an individual or a business entity.

F.“State” means any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands;

Section 3.Submission of Personal Information

A.An insurance entity shall furnish information concerning the entity’s identity, personal history, experience, business record, and other pertinent facts that the Insurance Commissioner may reasonably require, as part of or in connection with the following:

(1)An application for a license;

(2)The renewal or reinstatement of a license;

(3)A change in officers, directors, members or change of control;

(4)An application to the Insurance Commissioner for a written consent permitted by 18 United States Code 1033 (e); or

(5)As is otherwise required by the Insurance Commissioner.

B.The insurance entity shall declare, subject to penalty of denial, non-renewal, suspension, or revocation of a license issued by the Insurance Commissioner, that the statements made in or in connection with the application are true, correct, and complete to the best of the applicant's knowledge and belief.

Drafting Note: The FBI requires that fingerprints be submitted to the state Department of Law Enforcement, Public Safety or Criminal Justice for a check of state records before the fingerprints are submitted to the FBI for a criminal history check. The FBI recommends all fingerprint submissions be in an electronic format.

Drafting Note: States are encouraged to resubmit fingerprints not less frequently than every five years.

Section 4.Authorization to Require Fingerprints

For the purpose of obtaining a state and federal criminal records check pursuant to [insert reference to appropriate state law] and public law 92-544, the Insurance Commissioner may require the business entity to submit a full set of fingerprints to the Insurance Commissioner. The Insurance Commissioner shall submit the fingerprints to the [insert reference to state Department of Justice/Public Safety Agency]. The [insert reference to state Department of Justice/Public Safety Agency] may exchange this fingerprint data with the FBI.
The Insurance Commissioner may require fingerprints to be collected and remitted in an electronic format to facilitate periodic resubmission of fingerprints.
The Insurance Commissioner may contract for the collection, transmission and retention of fingerprints. If the Commissioner does so, the fee for collecting, transmitting and retaining fingerprints shall be payable directly to the contractor by the insurance entity. The Insurance Commissioner may agree to a reasonable fingerprinting fee to be charged by the contractor.

Section 5.Receipt of Criminal History Information

The Insurance Commissioner is authorized to receive criminal history record information in lieu of the [insert reference to Department of Justice/Public Safety Agency] that submitted the fingerprints to the FBI.

Drafting Note: This provision does not permit the sharing of criminal history record information with the NAIC or other Insurance Commissioners as such sharing of information is prohibited by 28 CFR 20.33.

Section 6.Regulations

The Insurance Commissioner may, in accordance with [insert appropriate reference to state law], promulgate reasonable regulations as are necessary or proper to carry out the purposes of this Act.

Section 7.Severability

If any provisions of this Act, or the application of a provision to any person or circumstances, shall be held invalid, the remainder of the Act, and the application of the provision to persons or circumstances other than those to which it is held invalid, shall not be affected.

Section 8.Effective Date

This Act shall take effect [insert date].

W:\Drafts\Misc\print2