Congress looks at interstate insurance agent licensing bill

WASHINGTON – The House of Representatives has taken up legislation aimed at modernizing the current system of licensing insurance agents who are registered in multiple states. Introduced by Reps. David Scott (D-Ga.) and Geoff Davis (R-Ky), H.R. 5611, the National Association of Registered Agents & Brokers Reform Act (NARAB II), would establish the National Association of Registered Agents and Brokers (NARAB), a non-profit organization that would regulate licensing standards on a nationwide scale.

This bill does not replace any current state-based regulatory systems nor does it reduce the requirements for agent licensure. H.R. 5611 permits agents who are licensed and operate in multiple states to comply with a standard set of licensing and continuing education rules. This concept originally was originally proposed in the Gramm-Leach-Bliley Act of 1999.

Coming out in support of the bill were the National Association of Insurance and Financial Advisors (NAIFA) and the Independent Insurance Agents and Brokers of America (IIABA). The American Insurance Association opposes the bill.

The bill can be viewed at the ASA’s legislative Web site www.TakingTheHill.com. Click Track Current Legislation on the home page. The bill is listed under Key Bills in Congress.