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Wednesday, March 20, 2013

ABIA Supported NARAB II Legislation in House and Senate

ABIA supports the passage of the National Association of Registered Agents and Brokers Reform Act of 2013 (NARAB II). The Senate bill, S. 534, was introduced by Sen. Tester (D-MT) and Sen. Johanns (R-NE).  The House bill, H.R. 1155, was introduced by Rep. Neugebauer (R-TX) and Rep. Scott (D-GA). 

The Senate Banking Committee; Securities, Insurance, and Investment Subcommittee held a hearing on the NARAB II legislation on March 19, 2013.  During the hearing, witnesses from the NAIC, the "Big I", CIAB and CRS all testified that NARAB II would benefit consumers, agents, brokers and the insurance market place by streamlining the current producer licensing system.

Sen. Tester said at hearing, "Membership in NARAB would streamline the licensing process for agents and brokers, enabling them to be licensed once under a single standard, saving time and money.  This common sense legislation would set rigorous professional and consumer protection standards and both Senator Johanns and I want to see it signed into law."

Jon Jensen, on behalf of the Independent Insurance Agents and Brokers of America said in his testimony, "state laws requiring insurance agents and brokers to be licensed in every jurisdiction in which they conduct business forces most producers today to comply with inconsistent standards and duplicative licensing processes." He added that these "requirements are costly, burdensome and time consuming, and they hinder the ability of insurance agents and brokers to effectively address the needs of consumers."

About NARAB:
This bill would move the current agent and broker licensing system from one based upon reciprocity to one based upon uniformity. The bill would permit agents and brokers that are members of NARAB and that abide by its standards to sell or broker insurance in any state based upon a home state license. 

Watch a webcast of a SBC Subcommittee hearing.

Read Sen. Tester's press release.

Read ABIA's Letter of Support.