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Tuesday, September 10, 2013

An Amended NARAB II Bill Could be Considered by the House This Week

Even with Congress Focused on Syria this week, the House of Representatives has listed H.R. 1155, the National Association of Registered Agents and Brokers Reform Act of 2013 (NARAB II), as one of several bills that could be considered this week under a suspension of House rules. The version of the bill they will may consider this week has been amended from the original bill that was introduced by Rep. Neugebauer in March 2013.

The amended version of NARAB II contains the following substantive revisions:
  • Clarification that individual states would continue to regulate market conduct, insurance producer conduct, unfair trade practices, consumer protections, and producer appointments.
  • A requirement that the Association only share information with the NAIC "to further the purposes" of the act.
  • Establishment of a central clearinghouse for producers to state that they intend to operate in multiple states, submit regulatory information, and pay licensing fees to multiple state. The clearinghouse would not be effective until at least two years after NARAB II is passed.
  • Subjecting nominees to the Association Board to procedures for "privileged nominations" under Senate Resolution 116 of the 112th Congress.
  • Composition of the Association Board would be changed to: 8 state insurance commissions (one being the chairman); 3 having demonstrated expertise and experience with property and casualty insurance producer licensing; and 2 having demonstrated expertise and experience with life or health insurance producer licensing.
  • A prohibition on the Association's receipt of any funds from the federal government.