Members of the National Association of Insurance Commissioners (NAIC) adopted by unanimous vote amendments to the NAIC Producer Licensing Model Act. In addition to adopting changes to ensure compliance with the reciprocity requirements mandated by the Gramm-Leach-Bliley Act (GLBA), members agreed to clarify provisions dealing with the licensing of consumer service representatives.
“Members of our NARAB Working Group have devoted a great deal of time and energy to this Model Act, particularly with respect to the consumer services representatives provisions in Section 4(B)8,” said George Nichols, Kentucky Insurance Commissioner and NAIC President. “We determined that the Section 4(B)8 provision was creating an impasse within the industry and would endanger the ability of states to pass the model, potentially triggering NARAB.
“Given this provision was not necessary to satisfy the NARAB mandate, our members decided it should be deleted to avoid continued industry opposition in the state legislatures,” Nichols added.
With the deletion of Section 4(B)8 and the technical amendment to set out Personal Lines as a separate category of licensure, members of the NAIC believe they have drafted legislation that can be supported in virtually every state by the major interest groups, agents and companies.
Commenting on the action, Nichols observed that the Model Law already has been adopted in four states (Kentucky, Missouri, New Hampshire and North Carolina) and will be considered in 31 states in upcoming legislative sessions.
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