A federal judge has overturned the state’s countersignature law that barred out-of-state insurance brokers from doing business in the state without involving an admitted agent.[@@]
Nevada officials plan to appeal the decision.
Nevada District Court Judge James Mahan ruled the state’s countersignature law “was not related to competence,” and the law “presumes that someone who is a nonresident is not competent.”
“There was no rational basis” for the additional requirement in Nevada law that its resident agents receive 5% of the commission from the business that is placed as a result of their countersignature, Judge Mahan said.
The judge has not yet rendered a written decision.
The suit was brought by the Council of Insurance Agents and Brokers, Washington, and Rebecca Restrepo, who runs the Sacramento, Calif., office of ABD Insurance and Financial Services.