Agent License Reform Incomplete, Says CIAB Head

However, “while great strides have been made over the past few years to streamline and simplify the nonresident producer licensing system, some large hurdles remain,” he said.

“Several of the largest licensing jurisdictions have not yet complied with NARAB reciprocity provisions,” he noted. “New York and Pennsylvania are still working on reform legislation, while California and Florida recently enacted legislation that does little or nothing to move those states toward reciprocity. These four states alone account for nearly 30% of the insurance marketplace.”

He said that “until thelicensing quagmire is fixed, multistate producers will continue to face problems in getting licensed in all licensing jurisdictions–problems that divert productivity from the business of serving consumers.”

Crerar took note of the fact that the NAIC at its meeting discussed uniform resident licensing requirements, addressing several areas not included within the NAICs Producer Licensing Model Act. He said his group looked forward “to sustained momentum over the next several years to break down the remaining licensing barriers facing our nations multistate insurance producers.”

E.E. Mazier is an assistant editor of NUs Property & Casualty/Risk & Benefits Management edition.

Reproduced from National Underwriter Life & Health/Financial Services Edition, September 23, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.