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PIA Comments on Producer Licensing to NAIC Working Group

Approximately 40 states have adopted legislation similar to the Producer Licensing Model Act (PLMA) developed under the auspices of the National Association of Insurance Commissioners...
May 27, 2003

Approximately 40 states have adopted legislation similar to the Producer Licensing Model Act (PLMA) developed under the auspices of the National Association of Insurance Commissioners (NAIC) with input from industry trade associations, including PIA. As the states have proceeded with implementation of the new laws, the "little tweaks" that states made, along with regulators' differing interpretations of identical language, have resulted in much less than uniformity and a lot more confusion.

Recognizing these issues needed to be addressed, the NAIC is in the process of reviewing the different tweaks and interpretations, and has requested input from the industry. PIA together with the other major trade associations submitted a first round of questions and proposed answers to some common recurring issues. These questions and answers will be discussed as part of the NAIC's Producer Licensing Working Group's meeting in New York City next month.

Letter to NAIC

Draft Questions & Answers

What It Means to Agents:  As most PIA members have licenses from more than one state, PIA members have to deal with these tweaks and differing interpretations on a day-to-day basis.  This can be both time-consuming and frustrating.  PIA urges affiliates and members that experience such differing interpretations to contact Ellen Sanders at ellensa@pianet.org  or 703-518-1363 to include that input in future written Q&As and in working group meetings.

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