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Producer Licensing Reforms Needed

In PIA survey after PIA survey, PIA members make clear that they are very satisfied with the current resident insurance producer licensing system, very...
August 21, 2007

Donna L. Pile, President, PIA NationalBy Donna L. Pile
President
PIA National

In PIA survey after PIA survey, PIA members make clear that they are very satisfied with the current resident insurance producer licensing system, very much want to keep state oversight of the system, but are increasingly upset with the lack of speed and/or progress for non-resident and non-admitted insurance producer needs.  Agencies report that they have lost business opportunities because of the "mess" that they encounter in non-resident insurance producer licensing.

As a PIA agency owner member, it is clear to me that my financial success and ability to compete depends on our success in achieving a modernized, open insurance producer licensing across the country.  Your contributions and responses to PIA outreach on producer licensing questions make this clear.

As your PIA member representative on this NAIC project, two things have become crystal clear to me. First, the solutions are in our hands. But they require our full commitment to make the necessary changes in our own states' current producer licensing systems, laws and practices that will accomplish our objectives in non-resident producer licensing.

Second, if we fail to act for and in our own interests, a federalized oversight system for insurance producer licensing could be imposed. Those who favor this believe it will be a federal solution that is narrow, and not otherwise interfere with state oversight. But in reality, it could be the first step down a slippery slope to federalizing the entire insurance oversight system.

I look forward to your questions, comments and suggestions in supporting our PIA efforts.  I commit to working with each of the PIA National and affiliate leaders to succeed in our PIA objectives, one that is imperative to our agencies' success.

PIA Connection

This article originally appeared in the September 2007 issue of PIA Connection.

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