Many top insurance regulators are rejecting the idea of creating a special, limited license for insurance agents who specialize in selling term life insurance.[@@]
The Market Regulation and Consumer Affairs “D” Committee, an arm of the National Association of Insurance Commissioners, Kansas City, Mo., voted here at the NAIC’s summer meeting to approve a proposed resolution opposing a limited term license.
The NAIC’s executive committee and plenary, or body that represents all NAIC voting members, still must approve the proposed resolution before it can take effect.
During the “D” Committee hearing, 2 insurance commissioners, Jim Poolman of North Dakota and Joel Ario of Oregon, and 1 consumer advocate, Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, spoke in favor of the proposed resolution.
Poolman is chairman of the NAIC’s Producer Licensing Working Group, a “D” Committee offshoot that approved the proposed resolution at the NAIC’s spring meeting in March.
Primerica Financial Services, Duluth, Ga., a unit of Citigroup Inc., New York, challenged the proposed resolution, saying it would cut off a way to reach underserved consumers.
Ario agreed that supporters of limited term licenses have a valid point about access to insurance, but he said he was supporting the resolution because of the need for states to have uniform producer licensing laws. He said some states could put more agents in the market by offering life-only licenses rather than requiring life agents to have life and health combination licenses.
Poolman said the need for uniformity in insurance regulation is a good reason to support the resolution.