The Risk and Insurance Management Society (RIMS) is standing behind the establishment of the National Association of Agents and Brokers (NARAB), a clearinghouse that would help producers gain multi-state licenses.
“Permitting insurance producers to practice across state lines will increase competition, potentially lowering rates,” said RIMS board director Carolyn Snow. “Additionally, organizations that work with independent producers, as well as those that need to protect assets in multiple states would benefit from NARAB's propensity to reduce redundancies and inefficiencies in the purchasing process, while also allowing those businesses to only work with one broker or agent.”
Although the provision suggesting NARAB's creation was written in 1999, the National Association of Registered Agents and Brokers Reform Act (NARAB II) passed the Senate Banking Committee in June 2013, and passed the House by a 397-6 vote on September 10.
Under the reform act (HR 1155), insurance agents and brokers will be able to apply for one NARAB membership in order to become licensed to sell insurance across the U.S., although RIMS maintains that states will retain complete authority to regulate their individual insurance laws.
Previously, producers had to re-submit the same information each time they chose to do business outside their home state.
RIMS, which has a membership of more than 11,000 risk management professionals worldwide representing about 3,500 industrial, service, nonprofit, charitable and government entities,
NARAB is also supported by the Property Casualty Insurers Association of America (PCIA) and the National Association of Insurance Commissioners (NAIC).
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