The Council of Insurance Agents and Brokers is urging the Senateto act promptly on legislation providing a mechanism for atrue nonresident licensing reciprocity, noting that the efforthas ”been waged for decades and is now closer than ever tofruition.”

“We congratulate and thank the Senate Banking Committee for itsvote – in particular, our sponsors Sen. Jon Tester, D-Mont. andSen. Mike Johanns, R-Neb., committee chairman Tim Johnson, D-S.D.,and ranking member Mike Crapo, R-Idaho – and we hope the fullSenate will soon consider the bill,” said Ken Crerar, CIABpresident and CEO.

Nat Weinecke, senior vice president, federal government affairs,for the Property Casualty Insurers Association of America, alsovoiced support.

“This common sense legislation would create a streamlined agentand broker licensing system that strengthens the competitiveinsurance market while maintaining important consumer protections,”Weinecke said. “PCI looks forward to working with the SenateBanking Committee as the full Senate considers this importantlegislation.”

The legislation, S 534, the National Association ofRegistered Agents and Brokers Reform Act of 2013, wasintroduced in the Senate in March by Sen. John Tester, D-Mont., andSen. Mike Johanns, R-Neb. It has 23 co-sponsors.

“As Johanns and Tester said, this bill 'hits the sweetspot',” Crerar said.

Crerar also touched on a proposed amendment by Sen. Tom Coburn,R-Oklahoma that would have allowed states to opt-out of NARAB II.The proposed amendment was rejected 18-4.

“We believe that Sen. Coburn's effort has been well-meaning, butwe have seen too often over the years that it is exceptionallydifficult to get all of the jurisdictions in alignment, and weagreed with the views of Johnson and others that the Coburnamendment could have undermined the intent of the legislation,”said Crerar.

The issue has been around since the late 1990s. NARBA wasincluded in the Gramm-Leach-Bliley bill, but the unwillingness oflarge states to support it, doomed it.

Crerar said that, the CIAB “has long supported the creation of anational agent/broker licensing system that strengthens thecompetitive insurance market and allows agents and brokersoperating on a multi-state level to avoid duplicative licensingrequirements, while maintaining important consumer protections,noting that legislation creating NABAR has twice passed theHouse.

Crerar disclosed that winning support for the bill in bankingpanel “has been an inclusive process, and many members of theSenate Banking Committee — from liberal to conservative — helpedimprove it.

“Given the number of years it has been under consideration andthe rare unanimity of the stakeholders, it also is a delicatecompromise,” Crerar said.

It's always harder to pass something than to beat something,especially in the Senate. So we are filled with gratitude for theleadership of this committee on both sides of the aisle.”

Crerar described NARAB as an interstate clearinghouse fornonresident licensure, governed by a panel dominated by stateregulators who would establish standards for membership that exceedthe existing requirements in any state.

“An approved NARAB member could utilize the clearinghouse fornonresident licenses in any other jurisdiction,” Crerar said.

States would retain their regulatory jurisdiction overconsumer protection, market conduct and unfair trade practices, andwould retain their rights over licensing, supervision, discipliningand the setting of licensing fees for insurance producers, Crerarsaid.