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Senate committee backs insurance producer licensing bill

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A bill that would unify licensing for nonresident insurance producers passed the Senate Committee on Banking, Housing and Urban Affairs on an 18-4 vote Thursday.

The National Association of Registered Agents and Brokers Reform Act of 2013, which would establish an interstate clearinghouse for nonresident licensing, is sponsored by Sens. Jon Tester, D-Mont., and Mike Johanns, R-Neb.

Legislative efforts to streamline multistate nonresident producer licensing go back many years, said Council of Insurance Agents & Brokers President and CEO Ken A. Crerar.

“This effort has been waged for decades and is now closer than ever to fruition,” Mr. Crerar said in a statement. “We congratulate and thank the committee for its vote today — in particular, our sponsors Sen. Jon Tester and Sen. Mike Johanns, Committee Chairman Tim Johnson and Ranking Member Mike Crapo — and we hope the full Senate will soon consider the bill.”

Charles E. Symington, senior vice president for external and government affairs for the Independent Insurance Agents & Brokers of America, said companion legislation, H.R. 1155, has strong backing in the House of Representatives.

“We look forward to working with Senate leadership to move the legislation to the Senate floor as soon as possible,” Mr. Symington said in a statement after the 18-4 committee vote to advance the bill. “We also look forward to working with the House of Representatives to act on this common-sense, pragmatic bill that will benefit our small business members and the customers they serve.”

Mr. Crerar praised the bipartisan nature of the bill and said it strikes a correct balance by enabling agents and brokers operating on a multistate level to avoid duplicative licensing requirements, while enabling state insurance regulators to retain regulatory jurisdiction over issues relating to consumer protection.

“This has been an inclusive process, and many members of the Senate Banking Committee — from liberal to conservative — helped improve it,” Mr. Crerar said. “Given the number of years it has been under consideration and the rare unanimity of the stakeholders, it also is a delicate compromise.”

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