KANSAS CITY, Mo.--A National Assn. of Insurance Commissioners' subgroup is recommending that the organization certify at least 35 states as meeting the reciprocity requirements for nonresident producer licensing under the federal Gramm-Leach-Bliley Act.
That finding gives the NAIC a six-state margin above the 29 it needed to avoid the creation of a National Assn. of Registered Agents & Brokers, which would have reduced the authority of NAIC regulators. According to the federal law, the states are required to meet standards that provide for the reciprocal treatment of nonresident producers by Nov. 12, 2002.
"This is a huge victory for state regulation. It once again demonstrates that we can work together to achieve a common goal," said NAIC VP Mike Pickens in a statement. Mr. Pickens is the Arkansas insurance commissioner and serves on the NAIC's NARAB Working Group.
The 35 states that have met the requirement should be joined by three additional states whose legislatures have adopted such laws--Massachusetts, South Carolina and Tennessee.
Following those state enactments, the remaining unreciprocal jurisdictions will be: Alaska, California, the District of Columbia, Florida, Idaho, Indiana, Missouri, Montana, New Mexico, New York, Pennsylvania, Puerto Rico, South Dakota and Washington.
The subgroup's recommendation will be presented to the full NAIC membership at the organization's fall national meeting, scheduled for Sept. 9-12 in New Orleans.
The Washington-based Council of Insurance Agents & Brokers praised the NAIC's certification process for including a thorough review of state laws. "Nevertheless, the council is still in the process of examining some of the state laws and will have a statement ready when that process is completed," said Nicole Allen, the CIAB's director of government affairs.
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