Ohio Producer Licensing Bill Passes House; En Route to Gov.

An Ohio agent-licensing bill that meets the reciprocity provisions of the federal Gramm-Leach-Bliley (GLB) Act unanimously cleared the House this week and is headed to Governor Taft’s desk.

“By passing Senate Bill 129, the Legislature has shown its commitment to modernizing insurance regulation,” National Association of Independent Insurers (NAII) Counsel Robert Hurns, said. “The measure’s reciprocity provisions make it easier for an insurance agent licensed in his or her home state to obtain a license in Ohio, and also provides a clear process for granting and terminating agent licenses. It will enable companies that conduct business in multiple states to provide immediate, around-the-clock service.”

But Hurns said the producer-licensing bill could use a stronger, broader exemption for customer service representatives, who make adjustments to policies, from the general licensing requirements.

“Hopefully, customer service representatives will be allowed to continue to provide a high-level of service to consumers—such as responding to routine requests and advising policyholders about appropriate coverage—under the bill’s provision regarding licensing exemptions,” Hurns said. “We will have to wait and see exactly how this section is interpreted. Overall, the bill is a strong step toward modernizing state regulation.”

Ohio would be the 39th state to enact such an agent licensing bill if Gov. Taft signs the measure. West Virginia became the latest state to place a similar producer- licensing bill on the books.

At least 29 states were required to pass agent licensing laws that are either uniform or reciprocal by November to avoid federal oversight through the National Association of Registered Agents and Brokers (NARAB).