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Producer Licensing Coalition Urges Delay on Fingerprinting Model

A coalition of industry trade associations including PIA, along with insurance carriers, met Tuesday, April 22, 2003 in Alexandria, Virginia to review the status of...
April 29, 2003

A coalition of industry trade associations including PIA, along with insurance carriers, met Tuesday, April 22, 2003 in Alexandria, Virginia to review the status of implementation of the NAIC's Producer Licensing Model Act and discuss options for achieving greater uniformity across state lines. Of particular concern is the NAIC draft model fingerprinting act that the Uniform Producer Licensing Working Group unveiled at its March 2003 meeting. This model would give states authority to require fingerprints from producers as part of the licensing and renewal process and to access the FBI criminal background databases using the fingerprints.

Coalition members had many of the same concerns as PIA, including the lack of specificity on issues such as confidentiality, scope of information accessible to the state authority, and procedural safeguards. (See PIA National Newsline, April 14, 2003) The Coalition is urging the NAIC to defer any action on the model until the Working Group and interested parties have had the opportunity to meet and discuss the several deficiencies in the bill.
 
What It Means to Agents:  The industry coalition recognizes that 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.

In the absence of federal action, any state-by-state action to obtain such authority must be done after careful review of the needs of the state and the rights of the affected individual agency and carrier officials.

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