PIANY Welcomes New Producer Licensing Law

After announcing plans to inform its members how to implement NY’s new Producer Licensing Act, (See IJ Website Oct. 24) the Professional Insurance Agents of New York State Inc. has issued a bulletin praising the adoption of the new statute.

The announcement said the PIANY was “pleased New York will join the ranks of states that have enacted some form of the model producer licensing act. Each state licensing law needed changes to meet uniformity and reciprocity goals as established in the 1999 federal Gramm-Leach-Bliley Act.

“Gramm-Leach-Bliley established a regulatory scheme for the financial services industry and encouraged states open their markets to non-resident insurance producer competition, the bulletin continued. “Meeting the goals of the federal act was seen by critics of state-based insurance regulation as a key test of its effectiveness.”

The organization noted that it had objected to “early versions of the New York bill, which could have precluded unlicensed employees of brokers from continuing to perform certain functions,” but had endorsed the measure once these objectionable portions were removed.

“As independent agents and brokers, we believe a uniform licensing model is a good thing. We want our customers to know they are dealing with professionals, whom they can trust,” stated PIANY President T.J. Derella. “Agreeing upon uniform rules will allow each state to govern its own insurance regulations and laws according to their specific needs, while giving our customers confidence when buying their insurance.”

Topics New York Legislation