Neugebauer and Scott Introduce Bipartisan Legislation to Streamline Insurance Licensing
Washington, March 12, 2013
Tags: Housing & Finance
Congressman Randy Neugebauer (R-TX) joined Congressman David Scott (D-GA) to introduce the National Association of Registered Agents & Brokers Act of 2013 (NARAB II), which would streamline the insurance agent licensing process.
“The NARAB Reform Act will create a more efficient, modern, and workable system of insurance agent licensing,” Congressman Neugebauer said. “That allows for more competition between insurance agents and brokers, which ultimately means more choices and better prices for consumers purchasing insurance policies.”
“Many of my colleagues in the House already know the significance of this legislation and how it will expand consumer choice and industry competition,” Congressman Scott said. “Similar legislation previously passed the House under suspension in the 111th Congress. The NARAB Reform Act will protect consumers, while also allowing for greater relief for those in the insurance industry who have struggled under burdensome regulations. I urge my House colleagues to support this legislation in order to modernize the system currently in place.”
The current state regulatory system has worked effectively to maintain insurer solvency and protect consumers. However, the state-based system needs agent licensing reform. Neugebauer and Scott drafted H.R. 1064 to maintain the successful state-based system of insurance regulation while improving consistency and streamlining procedures from state to state.
The NARAB Reform Act provides for non-resident insurance agent and broker licensing while preserving the rights of states to supervise and discipline agents and brokers. Reforming the current policy provides much-needed reciprocity in producer licensing through a board of state commissioners and industry representatives.
The NARAB Reform Act only relates to marketplace entry and would not impact the day-to-day state regulation of insurance. Additionally, NARAB would not be part of, or report to, any federal agency and would not have any federal regulatory power. The legislation also would provide higher and more consistent national consumer protections for those agents utilizing NARAB. The National Association of Insurance Commissioners (NAIC) has formally endorsed the legislation and it is a top priority for the insurance industry, including the Independent Insurance Agents & Brokers of America.