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PIA to File Comments on Standards for Navigators with NAIC

PIA National is preparing to file formal comments with the National Association of Insurance Commissioners (NAIC) Producer Licensing Task Force, recommending that strict standards be adopted governing healthcare navigators...
June 26, 2013

PIA National is preparing to file formal comments with the National Association of Insurance Commissioners (NAIC) Producer Licensing Task Force, recommending that strict standards be adopted governing healthcare navigators. “Navigators may likely be the first point of contact for many people who are entering the health insurance market for the first time,” noted David M. Eppstein, Esq., assistant vice president of regulatory affairs at PIA National. “We therefore advocate for some fundamental regulation of navigators, so they can reliably perform their limited duties, as mandated by federal law.”

PIA recommends that a producer license should continue to be required in order to sell, solicit or negotiate insurance. We also recommend that regulations include allowing exchanges to encourage or even require navigators to carry errors and omissions liability coverage, so consumers may be held harmless for any mistakes made by navigators. PIA advocates creating a navigator license that is fulfilled by thorough education requirements. Appropriate vetting of navigators should be required, including background checks.

“At this critical juncture in the healthcare market, now is not the time to gamble with consumer protections,” PIA notes in its draft remarks. “Agents and brokers have been relied on for generations because consumers trust them and value their sound advice. We therefore support approaches that continue to utilize the expertise of professional insurance agents.”

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