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NAIC Summer Meeting Update - Producer Licensing

The NAIC's Producer Licensing Working Group has begun the process of determining which states have licensing procedures and requirements that differ from those provided for...
June 26, 2003

The NAIC's Producer Licensing Working Group has begun the process of determining which states have licensing procedures and requirements that differ from those provided for in the NAIC Producer Licensing Model Act (PLMA), and the standards that the working group adopted pursuant to the PLMA Provisions.

A survey was sent to each jurisdiction, and thus far 30 jurisdictions have responded.  Some work will be done by conference call before the NAIC's fall meeting in September. Not every state is represented on the working group, therefore the working group has decided to reach out to all jurisdictions to participate in these calls, to be as comprehensive as possible.

Going into the summer NAIC meeting, fingerprint-based background checks were expected to be a hotly contested issue.  But the meeting on that issue was cancelled at the last minute because some of the stakeholders could not be present, such as representatives from the FBI and states Attorneys General.  The meeting was rescheduled to September.

What It Means to Agents:  The NAIC continues to be under great pressure to show progress on regulatory modernization, under the threat of complete or partial oversight by Congress. In terms of producer licensing, most states have enacted laws providing reciprocity for non-resident licenses and many have adopted legislation similar to PLMA.  The state to state idiosyncrasies defeat the goals of efficiency and streamlining of processes.  Thus, there will continue to be a great push at the state level, both in the departments of insurance and legislatures, to achieve such uniformity.

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