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A Major Push to Continue More Modernization on Producer Licensing

The National Conference of Insurance Legislators' (NCOIL) Executive Committee unanimously adopted a widely supported resolution in support of the National Insurance Producer Registry (NIPR) and...
March 12, 2008

The National Conference of Insurance Legislators' (NCOIL) Executive Committee unanimously adopted a widely supported resolution in support of the National Insurance Producer Registry (NIPR) and urged all states to fully implement NIPR services to eliminate unnecessary hurdles in producer licensing.

The resolution was sponsored by Sen. Carroll Leavell (NM). The resolution says that the nonresident multi-state licensing system still lacks uniformity and reciprocity and urges states to fully utilize the NIPR in order to modernize licensing requirements. The resolution encourages state educational efforts and recognizes NIPR's importance to state insurance regulation.

"We have assured Congress that states are taking steps to modernize agent licensing to provide a more streamlined regulatory environment and NCOIL is backing up that statement," said Sen. Leavell. "Fully implementing the NIPR is a small task for states that can provide tremendous relief to insurance agents regarding licensing and related services."

During her February 27 remarks at the PIA Federal Legislative Summit, NAIC President Sandy Praeger said NIPR is now in all 52 jurisdictions throughout the United States, a simple process for resident and non-resident agents to get licensed in all states. She added that NAIC recently allocated funds to NIPR to upgrade its capacity to handle what has proven to be a "tremendous" increase in usage by agents.

NCOIL State-Federal Relations Committee co-chair Representative Greg Wren (AL) described first-hand his success with the NIPR, noting that several days before he had contacted the Commonwealth of Virginia at 3 p.m. to apply for an out-of-state license. By 9 a.m. the next morning, he said, Virginia had e-mailed him his license, allowing Rep. Wren to sell coverage to a friend living in the Commonwealth.

During his address March 2 to the PIA National Board of Directors, NCOIL President Brian Kennedy said that NCOIL will work together with PIA to modernize the state system of insurance supervision -- a system that he acknowledged as not ideal, but still the best in the world. One area states are showing progress, he said, is producer licensing.  Kennedy acknowledged that it might take the help of PIA affiliates in some states, but he is committed to working with us and the NAIC to streamline the licensing system.

What It Means to Agents:  PIA National is a designated member of NIPR and is currently serving as a voting member of the board. We are pleased to see that state legislators are now encouraging their state insurance regulators to take full advantage of this electronic licensing system and regulators responding so positively in quick fashion.  State modernization changes must proceed with state DOIs, legislators and PIA members/affiliates onboard.

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