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PIA President Pile Meets with NAIC Leadership, Industry on Producer Licensing

PIA National President Donna Pile met with NAIC Commissioners, staff and industry colleagues on August 30 to discuss solutions to the lack of uniformity in...
September 4, 2007

PIA National President Donna Pile met with NAIC Commissioners, staff and industry colleagues on August 30 to discuss solutions to the lack of uniformity in the non-resident licensing system. NAIC Vice President, Commissioner Roger Sevigny (NH), is leading the uniformity effort on behalf of the NAIC.
 
The first meeting of the coalition, held earlier this summer in Washington DC, was very productive. President Pile let the commissioners know what a vital issue this is for PIA and assured them that we stand ready to assist the commissioners in improving the state system. The meeting in Chicago focused on the specific impediments to uniformity including foreign corporation requirements and states' adding requirements for producers that violate state and federal law.  The coalition also discussed how new technology, such as the National Insurance Producers Registry (NIPR) can help states modernize the non-resident licensing system.

Perhaps the most exciting news to come out of the meeting was that the NAIC is aggressively going after states that require producers to register with their secretary of state as a foreign corporation before obtaining a non-resident license.  Commissioner Sevigny reported that the NAIC is taking action to alleviate these unnecessary foreign corporations requirements. NAIC leadership is scheduled to begin a dialogue with the Secretaries of State, with the goal of completely resolving this problem for producers. States that can remove this requirement by administrative action are already beginning to do so.

Commissioner Sevigny reported that NAIC leadership discussed ways to help improve the licensing process for producers extensively during their Executive Committee meeting in August.  One strategy they plan to begin to implement right away is a state-by-state on site review of the licensing procedures with the goal of having a report on their findings for their February retreat.  How well the states are adhering to their own statutes, most notably, the Producer Licensing Model Act will be included in the report. 

During the next NAIC meeting in Washington, D.C. the regulators will discuss state requirements for business entities versus individuals and whether a non-resident business entity license should be required.  It is PIA's position that only a non-resident individual license should be required and we made this point in our discussions with the regulators.

The regulators agreed with industry representatives that we should be making full use of the technology available to us.  With that in mind, NIPR staff will be more involved in future meetings to give us their opinions as to how we can best utilize their service to streamline the licensing process.

Finally, this coalition is very appreciative of the reports we have been giving them on the licensing experiences of PIA members.  The regulators said these reports are extremely valuable because even though states may have "uniform" laws and regulations on the books, so-called "desk drawer" rules may be causing problems for producers.  Please keep your reports coming in to davidep@pianet.org. They really do help improve the system!