NU Online News Service, Oct. 20, 3:58 p.m. EDT
ORLANDO, Fla.–Surety licensing will not be considered a "limited line" as regulators move forward with efforts to promote licensing uniformity.
The National Association of Insurance Commissioner's Producer Licensing Working Group made the decision after finding that very few states have sought to treat the business in a special way from the rest of their casualty business.
According to a posting on the Arizona Insurance Department website, a limited line of authority would grant a licensee authority to sell a single subline of insurance, whereas a major line of authority allows the sale of a broad array of insurance products.
Anne Marie Narcini, chairwoman of the committee and manager of the office of Consumer Protection Services for the New Jersey Department of Banking and Insurance, said during today's hearing here that the move to place surety in limited lines began in 2002 when the issue was raised during working group hearings.
The working group decided not to place it under limited lines in response to a survey of states that found only three states treat licensing for surety as a limited line.
One working group member, Robert Perkins with the Mississippi Department of Insurance, objected to the move, voting against the measure, because his state has placed surety as a limited line.
A discussion about placing credit under limited lines was tabled because research is continuing on the subject and objections were raised by credit insurers who say federal issues need to be addressed as well, Ms. Narcini said.
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