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NAIFA To NAIC: Approve Resolution Rejecting Limited Term Licenses

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A major producer group reiterated its opposition to limited term insurance licenses, calling on state insurance regulators to adopt a resolution rejecting them.

The National Association of Insurance and Financial Advisors, Falls Church, Va., has called for the National Association of Insurance Commissioners to advance the resolution currently under review. A hearing is scheduled on June 11 during the summer NAIC meeting in Boston.

The issue also is expected to be reviewed by the National Conference of Insurance Legislators, Troy, N.Y., when it meets in July.

In a June 3 letter, NAIFA states that the NAIC resolution is “an appropriate condemnation of proposals that would create a new license to sell only term life insurance.”

NAIFA says it opposes term life licenses because they will:

==”lower the bar for producer education,”

==”limit the product a term licensee can offer a consumer and enable such licensees to consult with consumers without an understanding of any life insurance products other than term,”

==and, “complicate the producer licensing system” and “undermine” the NAIC’s efforts to strive for uniformity.

Such licenses would ‘lower the bar for producer education’