NU Online News Service, Jan. 7, 5:44 p.m. – A new insurance producer licensing law will take effect in Michigan March 1.
The measure, signed by Gov. John Engler Jan. 2, was enacted in an effort to meet the agent licensing reciprocity requirements of the federal Gramm-Leach-Bliley Financial Services Modernization Act.
When Congress passed the federal act, it gave states a choice of adopting reciprocal licensing laws or accepting federal regulation of agent licensing.
The new Michigan law is based on the Model Uniform Insurance Producer Licensing Act, a model act developed by the National Association of Insurance Commissioners, Kansas City, Mo.
Laura Kotelman, counsel for the National Association of Independent Insurers, Des Plaines, Ill., says the signing of the Michigan bill makes Michigan the 40th state to enact laws or to adopt regulations addressing GLB.
More states will address the issue this year, Kotelman says.
Only California, Florida, Massachusetts, New York, Ohio, Pennsylvania, South Carolina, Tennessee, Vermont, West Virginia and the District of Columbia have failed to pass legislation addressing producer licensing, according to the NAII.