A National Association of Insurance Commissioners working group has tried to decide which state producer licensing requirements are consistent with efforts to make the requirements more uniform.
The Producer Licensing Task Force has put a draft of the working group’s report on its agenda for the summer meeting of the NAIC, Kansas City, Mo., which is set to start June 13 in Minneapolis.
The NARAB Working Group drafted the report in response to a request that it complete the evaluation of the reciprocity standard developed by the NAIC’s 2002 NARAB Working Group and make final recommendations by the 2009 summer meeting for revisions.
NARAB measures would create a National Association of Registered Agents and Brokers, a national organization that would take responsibility for licensing producers in all states.
Similar measures have been in the works for decades, and one was actively supported by President Theodore Roosevelt.
The NAIC has been trying to work within the existing state-run insurance regulatory framework to encourage each state to offer the same treatment to producers from other states that they offer to in-state producers, or to offer “reciprocal” treatment – treatment based on the rules that incoming producers’ home states apply to out-of-state producers trying to do business in their jurisdictions.
The NARAB Working Group has suggested that states that impose some requirements on non-resident producers or applicants are acting in a way that is inconsistent with reciprocity standards.
Those requirements include fingerprint requirements; requirements that a business entity to submit articles of incorporation; requirements that a producer get a life license before applying for a variable life license; and requirements that producers submit extra information to verify their age.