House Passes Insurance Licensing Bill

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On September 10, the U.S. House of Representatives passed legislation, H.R. 1155, which would amend the Gramm-Leach-Bliley Act to allow for multistate licensing of insurance producers through the establishment of the National Association of Registered Agents and Brokers (NARAB). The bill would authorize NARAB to: (i) establish membership criteria, (ii) deny membership to a state-licensed insurance producer on the basis of the criminal history information obtained, or where the producer has been subject to certain disciplinary action, (iii) receive and investigate consumer complaints and refer any such complaint to the state insurance regulator, and (iv) coordinate with state insurance regulators to establish a central clearinghouse and a national database for the collection of regulatory information concerning the activities of insurance producers. The bill would retain states’ regulatory authority over: (i) licensing, continuing education, and other qualification requirements of non-NARAB producers, (ii) resident or nonresident producer appointment requirements, (iii) supervision and disciplining of such producers, and (iv) setting of licensing fees for insurance producers. States also would remain responsible for consumer protection and market conduct. The bill passed the House last Congress, but never advanced in the Senate.  Earlier this year, the Senate Banking Committee reported a corresponding bill, which is awaiting consideration by the full Senate.

Topics:  Gramm-Leach-Blilely Act, Licensing Rules, NARAB, Proposed Legislation

Published In: Insurance Updates

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