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Senate Passes TRIA; National Insurance Licensing Hub Closer to Reality

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The Insured Retirement Institute on Thursday applauded Senate passage of the Terrorism Risk Insurance Act (TRIA) of 2014, which included a provision known as NARAB II, which creates a national insurance licensing clearinghouse for financial professionals operating in multiple states.

The Senate voted 93-4 Thursday to pass H.R. 26, which passed the House by a vote of 416-5. TRIA will now go to President Barack Obama’s desk for his signature.

“Today’s historic vote is the culmination of years of efforts seeking more efficient insurance licensing for financial professionals working in multiple states,” said IRI president and CEO Cathy Weatherford, in a Thursday statement.

The bipartisan legislation, she said, “will remove redundant regulatory burdens, establish a streamlined multistate licensing process, and enhance consumer choice.”

The House Financial Services Committee approved an amendment June 20 that added NARAB II to the TRIA (H.R. 4871). The amendment was offered by Rep. Randy Neugebauer, R-Texas.

Thanks to Senate and House leaders, including efforts by Sens. Jon Tester, D-Mont., Mike Crapo, R-Idaho, as well as Reps. Neugebauer and David Scott, D-Ga., “one-stop insurance licensing across state lines will soon be a reality,” Weatherford said.

Passage of the National Association of Registered Agents and Brokers Act (NARAB II) establishes an insurance licensing clearinghouse for financial professionals operating in multiple states, and would help retirees and boomers stay with their advisor when moving out of state.

An investor survey conducted by IRI earlier this year found that 43% of investors said they are considering relocating to another state for retirement, while a separate IRI survey of baby boomers found that three in four would want to keep working with their financial planner if they relocated to another state.

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