NARAB (EX) Working Group
March 31, 2008
The NARAB (EX) Working Group met on Monday, March 31, 2008 and discussed the following items.
1. The Working Group reviewed their charges as adopted by Executive Committee at its March 30 th meeting which are as follows:
- Evaluate the reciprocity status of states that are not currently certified as reciprocal but whose producer licensing laws have been reviewed by the NAIC Legal Division as eligible for reciprocity certification and recommend by the 2008 Summer National Meeting whether one or more of these states should be deemed reciprocal based on the 2002 reciprocity standard.
- Evaluate the reciprocity standard developed by the NAIC’s 2002 NARAB (EX) Working Group and make recommendations by the 2008 Summer National Meeting for revisions or additions to the standard to address the issues identified in the Producer Licensing Assessment Aggregate Report of Findings including the various state requirements that are imposed upon non-residents but may not have been specifically addressed in the 2002 reciprocity standard. Provide a recommended plan by the 2008 Summer National Meeting for accomplishing the certification process for states regarding any revisions or additions to the 2002 reciprocity standard.
- Evaluate the key findings and issues regarding disparate business entity licensing laws, regulations and practices identified in the Producer Licensing Assessment Aggregate Report of Finding and provide policymaking recommendations by the 2008 Fall National Meeting for simplifying and standardizing the business entity licensing process through considering all options ranging from elimination of the licensing of business entities to elimination of components of the process such as licensing by line of authority or by each branch location.
2. The Working Group reviewed and asked for comments on the seven issues identified in the Producer Licensing Assessment Aggregate Report of Findings pertaining to GLBA reciprocity. These issues include:
- Requiring an underlying life license prior to the issuance of a non-resident variable life license;
- Verifying legal work authorization for non-resident applicants who are non-U.S. citizens;
- Requiring the designated responsible producer to be licensed or appointed prior to the issuance of a non-resident business entity license;
- Requiring a non-resident business entity to submit articles of incorporation;
- Requiring individuals seeking a fraternal non-resident license to have an accident/health license and have a fraternal certificate from a company;
- Requiring non-resident producers to renew licensure annually, while resident producers renew biennially; and
- Verifying an applicant for a non-resident license renewal has paid all undisputed taxes and unemployment insurance contributions.
3. The Working Group asked for written comments by April 25, 2008 on the following items:
- Whether and how the seven issues identified in the Producer Licensing Assessment Aggregate Report of Findings impact Gramm-Leach-Bliley reciprocity requirements and compliance by the states?
- Whether there are other issues not specifically identified in the Aggregate Report that affect GLBA reciprocity and compliance by the states?
4. The Working Group announced it plans to post reciprocity checklists for states not certified by the 2002 NARAB Working Group but appear eligible for certification. Written comments on these checklists will be due on April 10, 2008. The District of Columbia and Montana have been recommended by the NAIC Legal Division for reciprocity certification since 2005, but because the initial NARAB Working Group had dissolved by this time, the new NARAB Working Group is being charged with formally considering and declaring Montana and the District of Columbia as reciprocal, if appropriate. Through the producer licensing assessment, at least three other states were found to be eligible for certification. These states are Indiana, Missouri and New Mexico.
5. The working group considered a work plan for completion of its charges.
Action Items:
1. Adopted a work plan for completion of its charges.