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NAIFA Calls On NAIC To Oppose Limited Term Licenses

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A major producer group has repeated its opposition to limited term insurance licenses, calling on state insurance regulators to adopt a resolution rejecting these licenses.[@@]

The National Association of Insurance and Financial Advisors, Falls Church, Va., is asking the National Association of Insurance Commissioners, Kansas City, Mo., to advance the resolution currently under review. The NAIC will hold a hearing on the proposal June 11 at its summer meeting in Boston. The issue also is expected to be reviewed during the summer meeting of the National Conference of Insurance Legislators, Troy, N.Y., when it meets in Newport, R.I., in July.

NAIFA says in the letter, which is dated June 3, 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 it believes 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 life, complicate the producer licensing system and undermine the NAIC’s efforts to strive for uniformity.