Commissioners To Discuss State Regulation

Practically speaking, an agency would need to obtain a federal charter to sell policies offered by a national insurer, Pickens says.

He says many state legislators oppose optional federal chartering because it could cut state revenue from premium taxes. Arkansas alone would lose $80 million a year, Pickens estimates.

State insurance regulation has made great progress in the last year, and Pickens says regulators will be talking about ways to make further progress.

Programs under review will include two major speed-to-market projects, the Improvements to State-based Systems project and the Coordinated Advertising Rate and Form Review Authority project.

Regulators will also discuss certification of state department compliance with the National Association of Registered Agents and Brokers provision of the Gramm-Leach-Bliley Act Financial Services Modernization Act.

GLB requires at least 29 states to eliminate regulatory barriers to entry by out-of-state agents. If too few states adopt uniform or reciprocal agent licensing rules, then GLB will force the federal government to set up NARAB, a national agent licensing body, in November.

To date, 39 states have passed legislation or adopted regulations that appear to satisfy the act, and five states are considering the Producer Licensing Model Act, according to the NAIC.

Thirty-two states and the District of Columbia have signed reciprocity agreements, the NAIC says.