The Independent Insurance Agents of America (IIAA) expressed its approval of the efforts made by a number of states to enact licensing reforms. IIAA State Government Affairs Committee Chairman Ronald A. Smith emphasized that such efforts are necessary in order to hold off the formation of a National Association of Registered Agents and Brokers (NARAB).
Under the Gramm-Leach-Bliley Act (GLBA) a total of 29 states must enact certain licesning reforms, including licensing reciprocity, by November 2002 in order to prevent the creation of NARAB.
Rhode Island and North Dakota became the 15th and 16th states, respectively, to ratify licensing reform legislation based on the National Association of Insurance Commissioner’s (NAIC) Producer Licensing Model Act. Other states that have adopted new laws based in large part on the NAIC model act are Arkansas, Idaho, Iowa, Kansas, Kentucky, Mississippi, Missouri, Nebraska, New Hampshire, North Carolina, South Dakota, Utah, Virginia and Wyoming.
The NAIC Producer Licensing Model Act establishes reciprocity and contains other provisions that streamline the licensing process and increase national licensing uniformity. States that adopt the Producer Licensing Model Act come into compliance with the licensing requirements contained in the NARAB provisions of the GLBA, which was enacted in November 1999.
Nearly every state legislature is expected to consider the Producer Licensing Model Act and similar reforms during the 2001 session. Bills in four states are currently awaiting the signatures of governors, six bills have been passed through at least one legislative chamber, and additional states are considering similar proposals.
According to the IIAA, each of these new laws, consistent with the Producer Licensing Model Act, prohibits unlicensed individuals from selling, soliciting or negotiating insurance, or offering advice or recommendations to consumers in any context.
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