A 3-month review of how states are complying with uniform producer licensing standards shows that 26 of 37 standards are in high compliance among states, according to the National Association of Insurance Commissioners, Kansas City, Mo.
“This self-assessment outlines where we stand today in terms of compliance with the Gramm-Leach-Bliley Act’s reciprocity requirements and uniform resident licensing standards,” says NAIC president-elect and New Hampshire Insurance Commissioner Roger Sevigny. “It also provides an independent legal review and on-site peer assessment of our licensing laws, regulations, practices and processes,” says Sevigny, who is also chair of the NAIC/Industry Producer Licensing Coalition.
The NAIC sent a team of volunteer regulators to visit 52 jurisdictions to examine compliance with its 2002 reciprocity standards.
The standards were developed so that states would comply with the Gramm-Leach Bliley Act of 1999. The GLBA required states to establish reciprocity as a way to avoid establishment of a federal body, the National Association of Registered Agents & Brokers.
The NAIC team defined high compliance as fulfillment of the standard by 35 or more states.
In addition, the team developed a snapshot of how states are using electronic tools provided through the NAIC and its affiliate, the National Insurance Producer Registry, to improve the licensing process for producers. Among the figures developed by the team were the following:
o 46 states electronically process non-resident licenses;
o 32 electronically process non-resident renewals;
o 12 electronically process resident licenses;
o 8 electronically process resident license renewals;
o 41 electronically process appointments and terminations;
o 6 electronically process appointment renewals;
o 47 use national producer numbers;
o 50 have eliminated paper certifications; and
o 45 accept address change requests electronically.
Another success indicator is that 47 states have moved away from the use and disclosure of Social Security numbers and, through NIPR, have implemented the use of a national producer number. The move was part of an effort to address privacy concerns and to move away from state-specific licensing numbers, according to the NAIC report, dated Feb. 19.