National Insurance Producer Licensing Bill Reintroduced in Congress

Federal legislation designed to streamline licensing for insurance agents and brokers operating in multiple states has been reintroduced in Congress.

The legislation, HR 2554, the National Association of Registered Agents and Brokers Reform Act of 2009, or NARAB II as it is known, was introduced by Rep. David Scott, D-Ga., and Rep. Randy Neugebauer, R-Texas.

The bill would establish a national organization, NARAB, which producers could join that would be responsible for establishing one set of licensing, continuing education, and other insurance producer qualification standards that would be applicable in all states in which they do business.

While establishing a national licensing system, it would still allow states to license, supervise, discipline, and establish licensing fees for insurance producers.

Similar legislation, H.R. 5611, passed the full House in Sept. 2008 but never attained a Senate vote.

Agents, who otherwise support state regulation, are backing the creation of the NARAB national licensing organization in part out of frustration with the efforts by state insurance departments and the National Association of Insurance Commissioners to achieve reciprocity in licensing rules and procedures.

Robert Rusbuldt, Independent Insurance Agents & Brokers of America’s CEO and president, said his organization believes the state system can’t effectively address certain regulatory problems and there is a role for Congress to play in helping to modernize state regulation. “The NARAB Reform Act is such targeted reform as it only relates to marketplace entry and would not impact the day-to-day state regulation of insurance.”

Topics Agencies Legislation