NAIFA Backs Federal Regulation Option

NAIFA says the uniform licensing requirement should include a mandatory criminal background check, and it agrees that a national database should identify agents who have committed fraud. But it argues that access to the database should be limited to regulators.

Consumer protection: NAIFA says the tax incentives supporting life insurance and other insurance products must be preserved. Uniform trade practices and consumer protection requirements should apply to all insurance sales and service activities, NAIFA says.

NAIFA also says insurance companies must adhere to adequate solvency standards that include guaranty funds or similar fail-safe mechanisms.

Rates and forms: NAIFA says that all duplicative filing and approval requirements should be eliminated, and that uniform filing and approval requirements should be established. NAIFA adds, however, that “quality to market” concerns should not be sacrificed to increase speed to market.

Regulatory rules and procedures: NAIFA says current regulatory expertise should be preserved to the maximum extent possible consistent with efficient regulation.

NAIFA insists that agents must be allowed to choose whether to submit to any newly created regulatory authority, and that agents must have a clearly defined role in the development and application of any new regulatory rules, structures and procedures.