Regulators at the National Association of Insurance Commissioners continue to talk about the possibility of creating a special license for agents who specialize in selling term life insurance.[@@]
Opponents of the proposal, including agent groups, which argue that the proposal would water down current licensing and continuing education requirements, thought they had persuaded the NAIC’s producing licensing working group to kill the proposal here at the NAIC’s spring meeting.
But supporters, including some regulators and a representative from Primerica Financial Services, Duluth, Ga., a unit of Citigroup Inc., New York, today persuaded regulators to continue to debate the proposal.
Supporters of the proposal, including Peter Schneider, Primerica’s general counsel, say it would open the field to agents who would be more likely to sell low-cost term life products to low-income and moderate-income consumers.
The NAIC’s market conduct committee is one of the committees that may be looking at the proposal, officials said.
Earlier at the Kansas City, Mo., group’s spring meeting, the producer licensing working group resolved to reject both the term life license proposal and other limited licenses that might be proposed in the future “because the implementation of any new limited line license would not preserve the necessary consumer protections and would not be consistent with the adopted uniform licensing standards of the NAIC,” according to the resolution text.