WASHINGTON BUREAU — A bipartisan team plans to introduce a new National Association of Registered Agents and Brokers Reform Act (NARAB II) bill in the House within 10 days.
The lead sponsors are expected to be Reps. Randy Neugebauer, R-Texas, and. David Scott, D-Ga.
Neugebauer has issued a statement confirming that he plans to re-sponsor the bill.
“This legislation will help reform and modernize a very important part of state insurance regulation: agent and broker licensing,” Neugebauer says.
The NARAB II bill would:
- Establish NARAB as a national, nonprofit producer licensing corporation.
- Encourage NARAB to develop one set of producer licensing and continuing education standards for the entire country.
- Give producers who are licensed in various lines in their home states the ability to conduct business in those lines in any state.
- Let states keep regulatory jurisdiction over consumer protection, market conduct and unfair trade practices matters.
- Let states continue to handle producer licensing, supervision, disciplining and licensing fee collection.
Neubebauer says adoption of the NARAB II bill would help consumers by increasing competition among producers and giving consumers more choices.
“The legislation is straightforward: insurance agents and brokers who are licensed in good standing in their home states can apply for membership to the National Association of Registered Agents and Brokers, which will allow them to operate in multiple states,” Neugebauer says. “Our legislation
addresses only market-entry procedures. It would not impact the day-to-day state regulation of insurance, and insurance agents would still be subject to the various consumer protection laws of the states.”