NU Online News Service, March 20, 2003, 5:17 p.m. EST – Key insurance regulators want to exempt producers serving in the U.S. armed forces from continuing-education requirements and other requirements that might be difficult to meet while they are away from home.
The National Association of Insurance Commissioners, Kansas City, Mo., is preparing a memorandum “as we speak” to get states to agree to the exemption, according to Matthew Brisch, an NAIC spokesperson.
The general consensus is that states will sign off on the memorandum quickly, Brisch says.
The NAIC is looking at the issue because the U.S. war with Iraq has led to the call-up of producers who are members of the National Guard and Reserves.
The National Association of Independent Life Brokerage Agencies, Fairfax, Va., got the ball rolling at the NAIC’s spring meeting in Atlanta, by asking that each state insurance commissioner waive continuing-education requirements for insurance producers during any calendar year in which the producer is called to active duty.
In a letter to regulators, Jack Dewald, chairman of NAILBA, wrote, “Our citizen soldiers are guaranteed their jobs when they return from the military. We must ensure producers remain qualified to perform those jobs. Waiving CE requirements will enable producers to return to work immediately and support their families.”
Regulators in some states already have the authority to exempt producers who are on active duty from certain licensing requirements.
In Delaware, for example, exempting producers who are serving outside of Delaware is covered by statute and regulation, according to Delaware Deputy Insurance Commissioner Peter Stone.
General licensing requirements are covered in 18 Del. Code 1707(h) and in Regulation 47, which specifically addresses continuing-education requirements, Stone says.