Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Regulation and Compliance > State Regulation

PIA Rallies Support For NIPR

Your article was successfully shared with the contacts you provided.

A producer group is urging the National Association of Insurance Commissioners to get all states to use the National Insurance Producer Registry.

Shifting to NIPR, an electronic producer licensing system, “is the simplest solution” for achieving modernization and “demonstrates that a consumer-based, states-based system is a very good system,” says Donna Pile, a Lexington, Ky., agent who is the immediate past president of the National Association of Professional Insurance Agents, Alexandria, Va.

The NAIC has been developing NIPR to avert the formation of a National Association of Registered Agents and Brokers.

The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 calls for the federal government to organize NARAB, which would take the role of licensing producers over from the states, unless states meet producer licensing and reciprocity targets.

In many cases, the NIPR system can help producers get life, health and property-casualty licenses in as little as 24 hours.

The system already is in place in 47 states, and it is possible for all states to participate in the system within 2 years, Pie writes in a letter to Roger Sevigny, chair of the NAIC/Industry Producer Licensing Coalition.

Getting all states to participate, rather than recruiting only the 26 needed to stave off the creation of NARAB, would send a clear sign that state regulation is effective and is the best tool that the insurance industry can use to modernize itself, Pile writes.

In addition, Pie writes that:

- All states should assign their insurance producer licensing authority to and through the NIPR system.

- States should use NIPR to serve both their resident and nonresident producer licensing requirements.

- States should consider assigning guardianship for their portion of the NIPR system to the NAIC.

Pile notes in her letter that the Central Registration Depository system, a national registration system for securities brokers started in 1981, has been a success and now is recognized by the federal government and all 50 states.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.