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PIA Comments on NAIC Draft Model Fingerprint Act

PIA National has submitted comments to a preliminary draft bill that would grant state insurance departments access to FBI databases for criminal background checks using...
April 16, 2003

PIA National has submitted comments to a preliminary draft bill that would grant state insurance departments access to FBI databases for criminal background checks using fingerprints.

During its Spring meeting in March 2003, the NAIC's Producer Licensing Working Group received the draft, which was prepared by some members of the NAIC's Anti-Fraud Working Group. The latter group received input from the FBI in formulating its draft. 

PIA submitted comments to the Producer Licensing Working Group pointing out several shortcomings in the bill and suggesting some changes. PIA believes that if there is to be a fingerprint bill, it should be uniform across all the states and be coordinated by the states. The model as drafted lacks many of the procedural safeguards that PIA had negotiated for inclusion in a national bill two years ago, such as definition of relevant information and the scope of the information to be reviewed. The national bill, H.R. 1408, passed the House of Representatives but died for lack of action by the Senate.

What It Means to Agents:  The NAIC, as the presumed functional insurance regulator under GLBA, is being pressured by other functional regulators to conduct more thorough background checks, utilizing the FBI criminal background check databases. NAIC and most of the states currently lack authority to access those databases. Congress could grant such authority. The House Financial Services Committee will take up such a bill only if the Senate promises that it, too, will attempt to pass such a bill. As yet, the Senate has been uninterested.