(This article was derived from a panel discussion at the 78th Annual AAMGA Meeting, which was held in May in Phoenix.)
UNDER pressure from the federal government, state insurance departments are moving toward a more uniform and streamlined approach to insurance regulation. The initial impetus was the passage of the federal Gramm-Leach-Bliley Financial Modernization Act of 1999. It contained a provision calling for the creation of a National Association of Registered Agents and Brokers (NARAB) if at least 29 states did not enact uniform or reciprocal licensing laws for nonresident producers by November 2002.
The law contained quite a "hammer." If the goal were not met, NARAB would come into existence, establishing uniform producer licensing laws nationwide, and preempting individual states' licensing procedures and qualifications. The threat proved enough to get just about every state to enact reciprocal licensing laws; i.e., laws that allow an agent licensed in one state to do business in another. A system of uniform producer licensing goals, however, is still far from a reality.
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