Legislation that would allow insurance agents to be registered by a single national licensing organization was introduced today in the House of Representatives.
Legislation that would allow insurance agents to be registered by a single national licensing organization was introduced today in the House of Representatives.
The National Association of Registered Agents and Brokers Reform Act, sponsored by Reps. David Scott, D-Ga., and Randy Neugebauer, R-Texas, would allow agents to register with federally chartered NARAB instead of registering with multiple states.
Currently, some states have set up a common registration system under provisions enacted in the Gramm Leach Bliley Act of 1999.
But many states have not joined the system, including some of the largest ones.
Groups representing the insurance industry have pushed for a single licensing and continuing-education system.
"In today's increasingly mobile world, it is a disservice to insurance consumers to have a regulatory system in place that makes it difficult for a consumer to retain their agent when they move to another state," the National Association of Insurance and Financial Advisors of Falls Church, Va., said in a release.
Membership in NARAB would be optional for agents, but all states would have to recognize credentials of agents who were licensed through the national organization.
Licensing standards would be set by a governing board of 11 members appointed by the president and approved by the Senate.
Agents licensed through the system would have to pay membership fees and would be subject to criminal-background checks.
Currently, only 17 states conduct criminal checks for insurance agents, according to NAIFA.
The legislation does not set up a federal insurance regulator.
Similar legislation was passed by the House of Representatives last year but was not passed by the Senate.
