U.S. House of Representatives Subcommittee on Insurance Approves Legislation Impacting Agent Licensing

The House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises on July 9 advanced H.R. 5611, the National Association of Registered Agents And Brokers Reform Act of 2008.

The National Association of Registered Agents and Brokers Reform Act of 2008—dubbed NARAB II—would ease the multi state licensing process for insurance producers by allowing agents and brokers the choice to join a licensure clearinghouse known as NARAB. Members of NARAB will be held to single set of non-resident licensing and continuing education standards. For more information and quick facts about NARAB II please go to www.naifa.org/advocacy/irr/narab.cfm

NAIFA worked closely with the bill’s sponsors Rep. David Scott (D-GA) and Rep. Geoff Davis (R-KY) to bring about Subcommittee passage of NARAB II. During his opening statement, Subcommittee Chairman Paul Kanjorski (D-PA) said he agreed to take up H.R. 5611 because of the support of NAIFA, the National Association of Insurance Commissioners (NAIC) and other agent groups. To view a letter of NAIFA’s support, go to www.naifa.org/advocacy/documents/galetter_070808.pdf.

Rep. Scott offered a manager’s amendment to his bill that reflects negotiations with the NAIC to gain their support. The amendment offered several changes to increase the role of the NAIC within NARAB. Most notable of the changes was the addition of two more NAIC members to the NARAB Board of Directors. In previous drafts of the legislation, industry representatives held five seats on the Board, whereas the NAIC held only four seats. With the new manager’s amendment, the NAIC would now maintain six seats on the Board, giving the NAIC a slight majority. It should be noted that the legislation still explicitly gives NAIFA a permanent seat on the Board.

In addition to an increased position on the Board of Directors, under the new draft of the bill, the NAIC, along with Congress and the President, would receive annual reports about the progress and activities of NARAB.

H.R.5611 now advances to either the full Financial Services Committee or could bypass the committee and go straight to the House floor. Timing for such action is not yet clear, but NAIFA will continue to keep you informed as developments occur.

For more information on all insurance regulatory reform proposals, please visit: www.naifa.org/advocacy/irr

NAIFA Staff Contact: Jill Edwards, Director of Federal Relations at 703-770-8158.