The Council of Insurance Agents and Brokers is urging the Senate to act promptly on legislation providing a mechanism for a true nonresident licensing reciprocity, noting that the effort has ”been waged for decades and is now closer than ever to fruition.”
“We congratulate and thank the Senate Banking Committee for its vote – in particular, our sponsors Sen. Jon Tester, D-Mont. and Sen. Mike Johanns, R-Neb., committee chairman Tim Johnson, D-S.D., and ranking member Mike Crapo, R-Idaho – and we hope the full Senate will soon consider the bill,” said Ken Crerar, CIAB president and CEO.
Nat Weinecke, senior vice president, federal government affairs, for the Property Casualty Insurers Association of America, also voiced support.
“This common sense legislation would create a streamlined agent and broker licensing system that strengthens the competitive insurance market while maintaining important consumer protections,” Weinecke said. “PCI looks forward to working with the Senate Banking Committee as the full Senate considers this important legislation.”
The legislation, S 534, the National Association of Registered Agents and Brokers Reform Act of 2013, was introduced in the Senate in March by Sen. John Tester, D-Mont., and Sen. Mike Johanns, R-Neb. It has 23 co-sponsors.
“As Johanns and Tester said, this bill 'hits the sweet spot',” Crerar said.
Crerar also touched on a proposed amendment by Sen. Tom Coburn, R-Oklahoma that would have allowed states to opt-out of NARAB II. The proposed amendment was rejected 18-4.
“We believe that Sen. Coburn's effort has been well-meaning, but we have seen too often over the years that it is exceptionally difficult to get all of the jurisdictions in alignment, and we agreed with the views of Johnson and others that the Coburn amendment could have undermined the intent of the legislation,” said Crerar.
The issue has been around since the late 1990s. NARBA was included in the Gramm-Leach-Bliley bill, but the unwillingness of large states to support it, doomed it.
Crerar said that, the CIAB “has long supported the creation of a national agent/broker licensing system that strengthens the competitive insurance market and allows agents and brokers operating on a multi-state level to avoid duplicative licensing requirements, while maintaining important consumer protections, noting that legislation creating NABAR has twice passed the House.
Crerar disclosed that winning support for the bill in banking panel “has been an inclusive process, and many members of the Senate Banking Committee — from liberal to conservative — helped improve it.
“Given the number of years it has been under consideration and the rare unanimity of the stakeholders, it also is a delicate compromise,” Crerar said.
It's always harder to pass something than to beat something, especially in the Senate. So we are filled with gratitude for the leadership of this committee on both sides of the aisle.”
Crerar described NARAB as an interstate clearinghouse for nonresident licensure, governed by a panel dominated by state regulators who would establish standards for membership that exceed the existing requirements in any state.
“An approved NARAB member could utilize the clearinghouse for nonresident licenses in any other jurisdiction,” Crerar said.
States would retain their regulatory jurisdiction over consumer protection, market conduct and unfair trade practices, and would retain their rights over licensing, supervision, disciplining and the setting of licensing fees for insurance producers, Crerar said.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.