The National Association of Mutual Insurance Companies (NAMIC) today applauded Congress for introducing a proposal that would allow insurance agents and brokers to become licensed in multiple states and would, ultimately, lead to more choices and lower costs for insurance consumers.
The legislation, the National Association of Registered Agents and Brokers Reform Act of 2009, was introduced today by Rep. David Scott, D-Ga., and Rep. Randy Neugebauer, R-Texas. It would establish licensing reciprocity for insurance producers that operate in multiple states. At the same time, it would ensure that states retain the authority to regulate marketplace activity and enforce consumer protection laws.
“This legislation is a great example of a way Congress can have a targeted role in helping to streamline and modernize the current insurance regulatory system,” said Marliss McManus, NAMIC’s senior federal affairs director. “It simplifies the system for insurance agents and brokers to become licensed across state lines – giving consumers more insurance alternatives.”
The legislation would establish the National Association of Registered Agents and Brokers through which one set of licensing, continuing education, and other insurance producer qualification standards could be adopted and applied on a multi-state basis. It would preserve the right of states to license, supervise, discipline, and establish licensing fees for insurance producers, as well as to prescribe and enforce laws and regulations with regard to insurance-related consumer protection and unfair trade practices.
“This proposal would create a system that would allow professionally licensed agents to easily offer their services across all jurisdictions without impacting the day-to-day regulation of insurance,” McManus said. “NAMIC will work with members of Congress to get this important legislation passed quickly.”
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Posted: Thursday, May 21, 2009 12:00:00 AM. Modified: Friday, May 22, 2009 8:56:39 AM.
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