House Passes Producer Licensing Reform
On September 10, 2013, the House passed legislation that would establish the National Association of Registered Agents and Brokers (the Association) as a non-profit organization that would enable multi-state licensing of nonresident insurance producers who meet the qualifications and conditions, and are members, of the Association. The membership of the Association would, among other things, authorize an insurance producer licensed in its home state to engage in the activities that a licensed nonresident insurance producer is permitted to conduct in other states where the member pays the licensing fee.
The Association would be an organization independent of the federal government and is designed to preserve the authority of the states pertaining to: licensing of insurance producers that are not members of the Association; resident and nonresident insurance producer appointment requirements; supervising and disciplining resident and nonresident insurance producers; establishing licensing fees and regulating the conduct of resident and nonresident insurance producers. The states would retain their authority over market conduct and unfair trade practices as well as consumer protection. To the extent that any state law or regulation is inconsistent with respect to market entry for nonresident insurance producers, the Association would supersede only to the extent of such inconsistency.
This legislation raises some issues that will need to be addressed. We will monitor and provide updates as they are available. For additional information, please contact Susan Lee (email@example.com | 212.868.4830) or Bob Ansehl (firstname.lastname@example.org | 212.631.4410).