FOR IMMEDIATE RELEASE
COMPLETES COMPREHENSIVE PRODUCER-LICENSING ASSESSMENT
KANSAS CITY, Mo. (Feb. 20, 2008) - The National Association of Insurance Commissioners (NAIC) today released a comprehensive review of state producer-licensing laws, practices and processes. The report - which provides an accurate national assessment of state producer-licensing regulation - identifies areas where the states' reciprocity and uniformity initiatives need improvement, along with areas where such efforts have been successful.
"It is remarkable to see what has been accomplished in such a short period of time," said NAIC President-Elect and New Hampshire Insurance Commissioner Roger Sevigny, who also serves as chair of the NAIC/Industry Producer Licensing Coalition. "This self-assessment outlines where we stand today in terms of compliance with the Gramm-Leach-Bliley Act's reciprocity requirements and uniform resident licensing standards. It also provides an independent legal review and on-site peer assessment of our licensing laws, regulations, practices and processes."
The peer assessment was conducted by a group of volunteer regulators who traveled to 52 member jurisdictions over a period of three months. Commissioners, directors, superintendents, senior regulatory staff and licensing directors were actively engaged in the assessment process.
At the request of the NAIC's Executive Committee, the report includes findings of continued compliance with the NAIC's 2002 reciprocity standard; a measurement of states' compliance with the NAIC's uniform resident licensing standards, along with a focus on areas of low compliance and document-related barriers to full implementation; and an assessment of concerns submitted by national producer trade organizations.
The report identifies a list of issues that were not specifically addressed within the NAIC's 2002 reciprocity standard and recommends further review by the NAIC membership. It also identifies areas for further membership consideration and direction, such as a nationwide resident fingerprinting initiative and further streamlining of the business entity licensing process. Specifically, the report recommends that national producer trade organizations assist by creating and advocating national professional standards among their constituents.
"This process has armed us with a wealth of valuable and comprehensive information that will serve us at many different levels of our producer-licensing reform efforts," Sevigny said. "Our first step will be to establish a working group to address the reciprocity issues and findings from the report, including continued work on the states' elimination of the Secretary of State corporate registration requirement - in addition to full consideration of those issues not fully addressed by the NAIC's NARAB Working Group in 2002."
Click HERE for a complete copy of the NAIC producer-licensing assessment report.
About the NAIC
Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City.
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©2008 National Association of Insurance Commissioners. All rights reserved.