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NAIC Addresses Uniform Resident Licensing Standards

The NAIC's Producer Licensing Working Group addressed uniform resident licensing standards during the its winter meetings, held December 4-7 in New Orleans. Standards clarified were...
December 7, 2004

The NAIC's Producer Licensing Working Group addressed uniform resident licensing standards during the its winter meetings, held December 4-7 in New Orleans. Standards clarified were those pertaining to citizenship, pre-licensing education, core limited lines, and license continuation.

1. Citizenship - The Working Group stated that the NAIC's legal department will investigate whether language can be added to the uniform application that requires the applicant to certify that he or she is authorized to work in the United States.

2.Pre-Licensing Education - The uniform standards require 20 hours of pre-licensing education per major line of authority. The Working Group clarified that states with no pre-licensing requirements would be exempt and considered compliant. However, any states that require pre-licensing education, but less than 20 hours of such, would be considered non-compliant and would be required to increase the number of pre-licensing education hours per major line to 20.

3. Core Limited Lines - The Producer Licensing Model Act (PLMA) recognizes six major lines of authority. States have been encouraged to eliminate as many limited lines of authority as possible. The Working Group stated that states that have a few outstanding lines outside of the core limited lines would be considered compliant, but those with excessive amounts would not be. States that do not have all of the core lines are compliant and are not required to add any lines.

4.License Continuation - States may require individual licenses to be renewed on either the birth date or the birth month of the licensee every two years. States that need to make changes to become compliant are being urged to choose the birth month. The year of the renewal will be based on the birth year of the licensee, i.e. - odd numbered birth years will be required to be renewed on odd-numbered years. The Working Group is asking interested parties to submit comments on whether the renewal of business entity licenses should occur on a date certain or month of license basis.