NARAB II Proposal Quick Facts
- The National Association of Registered Agents and Brokers Reform Act or "NARAB II" was introduced in the U.S. House of Representatives on March 13, 2008. It was passed by the U.S. House of Representatives on September 17, 2008 and will likely see further legislative action in the 111th Congress which begins in January 2009.
- NARAB II does not create a federal regulator for insurance.
- Membership in NARAB is optional.
- The bill does not aim to reduce the standards for agents to be licensed; rather it allows producers who are licensed and operate in multiple states to comply with a single set of non resident licensing and continuing education rules.
- Agents that apply for NARAB membership will be required to submit to a criminal background check.
- There will be fees for NARAB membership that will be established by the NARAB governing board.
- NARAB members would be governed by NARAB’s continuing education requirements and no state other than a producer’s home state could impose CE requirements on NARAB members.
- Non-resident states would continue to have the power to discipline NARAB licensed producers and to suspend their licenses.
- The NARAB Board must coordinate disciplinary efforts with the states and establish a consumer complaints office.
- The NARAB Board can seek a court order if necessary to enforce its disciplinary actions.
- The NARAB Board would be composed of insurance commissioners, insurance producers (including a NAIFA representative) and carriers.
The National Association of Registered Agents and Brokers Reform Act or "NARAB II"was passed by the U.S. House of Representatives on September 17, 2008 and will likely see further legislative action in the 111th Congress which begins in January 2009.