NAIFA has joined with nine other industry organizations to send a letter to the office of every U.S. senator urging them to support S.2342, legislation that would establish the National Association of Registered Agents and Brokers (NARAB).
The so-called NARAB II bill would establish a federal licensing clearinghouse for insurance agents who operate in multiple states. The legislation would ease the regulatory burden on agents who operate in multiple states and protect consumers by making it easier for agents to maintain client relationships no matter where the clients live.
The letter to the Senate offices reads:
June 12, 2012
The undersigned organizations are writing to ask you to support and to cosponsor S.2342, legislation that would establish the National Association of Registered Agents and Brokers (NARAB). This common-sense legislation would create a streamlined agent and broker licensing system that strengthens the competitive insurance market while maintaining important consumer protections. In an increasingly mobile society, NARAB would allow agents and brokers to more efficiently operate on a multi-state basis by eliminating duplicative state licensing requirements and unnecessary costs that make it difficult to effectively and efficiently serve the clients that depend on us.
Specifically, the legislation would create an interstate clearinghouse for insurance agents and brokers to obtain approval to operate on a multi-state basis. NARAB would be governed by a panel dominated by state regulators and would establish standards for membership that exceed the existing requirements in any state. A prospective NARAB member would be required to be fully licensed in his or her home state and satisfy rigorous membership criteria, and an approved NARAB member could utilize the clearinghouse to obtain the regulatory approval necessary to operate in any other selected jurisdiction.
S.2342 is endorsed by the undersigned stakeholders. The legislation has also received the endorsement of the National Association of Insurance Commissioners. We ask for your support of this bill, which will provide important benefits to insurance consumers.
American Association of Managing General Agents
American Bankers Insurance Association
American Insurance Association
Council of Insurance Agents and Brokers
Independent Insurance Agents and Brokers of America
Insured Retirement Institute
National Association of Insurance and Financial Advisors
National Association of Mutual Insurance Companies
National Association of Professional Surplus Lines Offices
Property Casualty Insurance Association of America