NAIC Testifies In Support Of Streamlined Producer Licensing Legislation

By Cyril Tuohy

InsuranceNewsNet

Monica J. Lindeen, vice president of the National Association of Insurance Commissioners (NAIC), has testified in support of the National Association of Registered Agents and Brokers Reform Act, known as NARAB II, which would streamline insurance producer licensing.

Speaking before a Senate panel earlier this month, Lindeen said NARAB II strikes the balance between protecting the interests of insurance buyers and making the process of distributing coverage easier and more competitive for sellers.

“These provisions preserve state regulatory authority to police insurance markets and protect consumers while streamlining a process for producers – this is why we support the bill,” Lindeen said in a statement.

Lindeen, the Montana insurance commissioner, delivered her comments at a hearing held by the Senate Committee on Banking, Housing and Urban Affairs. NARAB II, recently introduced in both houses of Congress, is an improvement over earlier versions of the bill, she also said.

NAIC, however, supports the Senate version of the bill because it preserves state authority and consumer protections to a greater degree than the House version, according to an NAIC issue brief.

NAIC sets U.S. regulatory insurance standards and is governed by the chief insurance regulators from 50 states, the District of Columbia and five U.S. territories. NAIC support is often crucial for any proposed legislation to become law.

NARAB II would create a nonprofit entity to streamline nonresident market access for insurance agents and producers. At the same time, it would ensure that producers remain subject to the range of state market conduct authorities to police bad actors through the creation of a National Association of Registered Agents and Brokers (NARAB).

The bill is intended to preserve state-based insurance regulation and consumer protections and does not create a federal regulator for insurance. The states would retain their regulatory authority over consumer protection, market conduct and unfair trade practices.

In addition to having bipartisan support in Congress, NARAB II is backed by producer organizations including the powerful National Association of Insurance and Financial Advisors.

Cyril Tuohy is a writer living in Pennsylvania. He has covered the financial services industry for more than 15 years. He has also written about food, restaurants and travel. He can be reached at Cyril.tuohy@innfeedback.com.

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Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. He can be reached at cyril.tuohy@innfeedback.com.