FOR IMMEDIATE RELEASE
NAIC TESTIFIES BEFORE CONGRESS IN
SUPPORT OF STREAMLINED PRODUCER
WASHINGTON, D.C. (March 19, 2013) — Monica J. Lindeen,
National Association of Insurance Commissioners (NAIC) Vice President and
Montana Insurance Commissioner, testified today in support of a proposal to
streamline insurance producer licensing. The hearing, held by a Senate
Committee on Banking, Housing, and Urban Affairs Subcommittee, was titled Streamlining
Regulation, Improving Consumer Protection and Increasing Competition in
“Insurance producers play a very important consumer resource role in the
U.S. insurance system. As the regulators of more than 6.8 million
individuals and business entities licensed to provide insurance services in
the United States, NAIC members recognize that streamlined non-resident
producer licensing is an important goal,” stated Lindeen.
Lindeen’s testimony outlined a number of key components of the
legislation and indicated that the current bill, commonly called NARAB II,
is an improvement over earlier versions.
“These provisions preserve state regulatory authority to police insurance
markets and protect consumers while streamlining a process for producers –
this is why we support the bill,” Lindeen said.
Legislation before Congress would create a non-profit entity to
streamline non-resident market access for insurance agents and producers
while ensuring that producers remain subject to the full range of state
market conduct authorities to police bad actors through the creation of a
National Association of Registered Agents and Brokers (NARAB). The bill is
intended to preserve state-based insurance regulation and consumer
protections—it does not create a federal regulator for insurance and the
states would retain their regulatory authority over consumer protection,
market conduct and unfair trade practices.
The leadership of the NAIC sent a letter to Congress earlier this month
in support of the legislation. Read the full letter HERE.
for full text of the submitted testimony.
for more information on producer licensing.