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Member, Beacon International Group, Ltd.
WASHINGTON—The introduction of a bill that would streamline agent licensing is drawing praise from major producer associations.
The National Assn. of Registered Agents and Brokers Reform Act—also known as NARAB II—was introduced Wednesday by Reps. Randy Neugebauer, R-Texas, and David Scott, D-Ga., and more than 40 co-sponsors. The measure, versions of which have been introduced in previous congresses, would create a nonprofit corporation to streamline licensing for nonresident agents and brokers, while maintaining state regulation of licensing.
A version of the measure passed the House last year but did not proceed in the Senate.
“Not a single member firm of ours doesn’t employ at least one person to handle the burdens of tedious state-by-state nonresident licensure, complete with lots of hassles that have little to do with standards of professionalism,” said Joel Wood, senior vp of the Washington-based Council of Insurance Agents & Brokers. “Further, the states have made virtually no progress on establishing uniform standards. It’s time for NARAB itself to come into existence as a voluntary organization that establishes a high standard of professional conduct. It will cut down on unnecessary costs ultimately borne by consumers, and it arguably is a net positive to state budgets. This is the next step along the way for regulatory reforms, and we hope and expect to see positive action by the Financial Services Committee.”
“NARAB II provides a mechanism for establishing true nonresident licensing reciprocity for the tens of thousands of (Independent Insurance Agents & Brokers of America) members who operate on a multistate basis,” says Robert A. Rusbuldt, president & CEO of the Alexandria, Va.-based IIABA. “This legislation improves licensing while ensuring that states retain the authority to regulate marketplace activity and enforce important consumer protection laws.”
WASHINGTON—The U.S. House of Representatives has approved a bill that would streamline reciprocal licensing of insurance agents and brokers nationally.