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PIA Applauds NAIC Report on Producer Licensing

PIA National is applauding the release by the National Association of Insurance Commissioners' (NAIC) of its long-awaited review of state producer-licensing laws and regulations, including...
February 26, 2008

PIA National is applauding the release by the National Association of Insurance Commissioners' (NAIC) of its long-awaited review of state producer-licensing laws and regulations, including assessments of progress made toward compliance with reciprocity standards and the body's uniform resident licensing standards.

The 53-page report aims to provide a comprehensive study of state laws, practices and processes. In compiling the comprehensive data, the report's authors wrote, they hoped to create "a roadmap for reform in 2008." New Hampshire Insurance Commissioner Roger Sevigny, chairman of the NAIC/Industry Producer Licensing Coalition, said in a statement, "This self-assessment outlines where we stand today. It also provides an independent legal review and on-site peer assessment of our licensing laws, regulations and processes."

Last summer, New Hampshire Commissioner and NAIC President-elect Roger Sevigny invited PIA National to participate in the special producer licensing coalition. Over the past six months, this coalition has met four times and has accomplished a lot. The coalition is currently made up of ten regulators and roughly 12 industry trade groups. The industry side of the coalition keeps growing at each meeting, as other groups have heard of the existence of the coalition and clamored to get involved.

What It Means to Agents:  In less than one year, the producer licensing coalition created by the NAIC has done excellent work, culminating with this recently-released review. PIA applauds the active leadership of NAIC President-elect Sevigny in leading this coalition to reform producer licensing, as it has produced excellent results. The NAIC is well on the way to bringing about important reforms in producer licensing - and is moving very rapidly. This fast-track action should go a long way toward silencing critics of state regulation of insurance, who are attempting to build support for a federal takeover by arguing that efforts to bring about reforms aren't moving fast enough.

PIA vehemently disagrees with the negative statements about this effort made by a spokesman for the IIABA. In remarks to BestWire on February 22, the IIABA spokesman was dismissive of the NAIC's ability to produce meaningful licensing reform, saying "the report does nothing to assuage" such skepticism. He also called for "targeted congressional intervention."

From PIA's perspective, this is entirely the wrong approach to take. It would be one more bite, and a really big one, out of state regulation. PIA is supportive of the excellent work of this important NAIC coalition.

NAIC Completes Comprehensive Producer-Licensing Assessment (NAIC 2/20/08)

NAIC Releases Producer-Licensing Assessment (BestWire 2/22/08)