A resolution opposing a limited term insurance license advanced toward full endorsement by the National Association of Insurance Commissioners at its summer meeting here.
During the Market Regulation and Consumer Affairs “D” Committee two insurance commissioners, North Dakota’s Jim Poolman and Oregon’s Joel Ario, and one consumer advocate, Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, spoke in favor of the resolution. Poolman chairs the Producer Licensing Working Group that voted the measure up to the “D” Committee during the spring NAIC meeting in March.
Primerica Financial Services, Duluth, Ga., then challenged the resolution saying it would cut off a way to reach the underserved market that today’s insurance environment is not servicing.
Louisiana Rep. Shirley Bowler, R-78th District, supported Primerica’s position on the same ground. The National Conference of Insurance Legislatures, Troy, N.Y., also is considering the issue.
Ario noted that while opponents of the measure have a valid point about access to insurance, the need for uniform producer licensing laws among states was the reason he was supporting the resolution. He said some states have life licenses rather than a combination of life & health licenses, and companies could pursue business in these states and thereby put more agents in the market.
Poolman also said the issue of uniformity, particularly in light of the discussion on the SMART Act in Washington, was a reason to support the resolution.