As the risk and insurance requirements of policyholders crossstate lines, annual state licensing compliance for agents andbrokers has become increasingly difficult. It's challenging foragents to comply with anywhere from two to 50 state regulatorymandates.

Collaboration between insurance trade groups has enhancedmulti-state licensing compliance,  advanced consumerprotections and maintained state-based regulation. Back in 1999,those efforts proposed the creation of the National Assn. ofRegistered Agents & Brokers (NARAB). Because a minimum numberof states achieved the required level of license reciprocity, NARABdid not come into fruition. However, as state licensing issuescontinue to increase, a new plan is needed.

NARAB II has been re-introduced with growing bipartisan supportin both houses of Congress (S. 2342 and H.R. 1112). Thiscommon-sense legislation would create a streamlined agent andbroker licensing system that strengthens the competitive insurancemarket while maintaining important consumer protections. In anincreasingly mobile society, NARAB would allow agents and brokersefficiently operate on a multi-state basis by eliminatingduplicative state licensing requirements and unnecessary costs.

Specifically, the bills create an interstate clearinghouse forinsurance agents and brokers to obtain multi-state approval tooperate. NARAB would be governed by a panel of state regulators andestablish an ethical conduct code and standards for membership thatexceed the existing requirements in any state. Membership in NARABwould be voluntary and not affect the rights of a non-memberproducer under any state license. Those applying for membershipwould be required to be fully licensed in their home states andsatisfy rigorous membership criteria. An approved NARAB membercould then use the clearinghouse to obtain the regulatory approvalnecessary to operate in any other selected jurisdiction. Thelegislation also has received the endorsement of the National Assn.of Insurance Commissioners.

Now is the opportunity for us to educate or electedrepresentatives on the need for this producer licensing reform andask for their cosponsorship and vote to approve the NARAB IIbills.