The Council of Insurance Agents and Brokers (CIAB) called for enactment of a uniform criminal history review as a part of the resident producer licensing processes in all states.
On May 7, The CIAB’s Board of Directors unanimously adopted a policy position statement supporting a criminal background check for all producers, including the collection of fingerprints. According to the CIAB, less than 20 states currently require background checks, and less than 10 include fingerprints as a part of that process.
CIAB leaders said the move was designed to encourage the National Association of Insurance Commissioners (NAIC) to achieve two goals: increasing standards of professionalism in the industry; and harmonizing regulation of the producer licensing process.
When the NARAB provisions of Gramm-Leach-Bliley Act were signed into law (1990), states decided to first pursue licensing reciprocity among states, with an ultimate goal of uniform standards.
Tom Rodell, CIAB’s board chairman and managing director of Aon Risk Consultants of Chicago, noted reciprocity alone will not achieve any improvement in standards of professionalism.
However, even among states that have criminal background checks, there are significant inconsistencies. Rodell stated that, in addition to fingerprint requirements, it is imperative that states devise a single standard for review.
Rodell added that the Council Board’s decision is designed to help lead the NAIC to the next crucial step in the evolving debate over producer licensing regulation.
Founded in 1913, CIAB’s members, operating in over 3,000 locations, place nearly 80 percent of all U.S. commercial property/casualty premiums, specializing in a wide range of insurance products and risk management services for business, industry, government and the public. .
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