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Thursday, June 6, 2013

ABIA-supported NARAB Bill Passed out of Senate Banking Committee

Today the Senate Banking Committee (SBC) held a markup of S. 534, the National Association of Registered Agents and Brokers Reform Act of 2013 (NARAB II). This bill is sponsored by Senators Tester (D-MT) and Johanns (R-NE).

ABIA supports this legislation because it 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.

During the Committee markup Sen. Coburn (R-OK) offered an amendment (#11) that would allow states to leave NARAB should they choose to do so; creating the probability that a home state license would not be recognized in states that aren't part of NARAB.  If passed, this amendment would have stripped the bill of one of its core benefits: uniformity.

The Committee rejected this amendment by a vote of 4-18, with Sens. Manchin (D-WV), Merkeley (D-OR), Vitter (R-LA) and Coburn (R-OK) voting for the amendment.

The bill passed by voice vote out of the Senate Banking Committee and will next be debated on the Senate floor. Sen. Coburn may re-introduce his amendment for debate on the Senate floor.  

Learn more about this Committee vote from the SBC.