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PIA Endorses New Version of NARAB II

Following weeks of careful consideration, PIA has decided to endorse the National Association of Registered Agents and Brokers Reform Act of 2009, or NARAB II...
May 27, 2009

Following weeks of careful consideration, PIA has decided to endorse the National Association of Registered Agents and Brokers Reform Act of 2009, or NARAB II (HR 2554).

HR 2554 would create a national insurance agent and broker license subject to state laws. The National Association of Registered Agents and Brokers, also called NARAB II, would streamline non-resident insurance agent and broker licensing. PIA National has decided to endorse this new version of NARAB II, as many of the concerns we raised about last year's version have been adequately addressed and the bill has been improved overall. PIA had not endorsed the previous version.

As also noted by the NAIC, PIA believes the new version of NARAB II provides another viable option for an improved agent licensing process, along with the National Insurance Producer Registry (NIPR). While establishing a national licensing system, NARAB II would still allow states to license, supervise, discipline and establish licensing fees for insurance producers, thereby preserving the principle of state insurance regulation. PIA National wishes to express its appreciation to Rep. David Scott (D-Ga.), one of the bill's prime authors, for his leadership and understanding of the concerns of professional insurance agents.

What It Means to Agents:  While there is no one "silver bullet" that will make agent licensing painless and easy, NARAB II will provide one more option that should help agents without undermining state insurance regulation. And it should also encourage the very few states that are still not yet conforming with NIPR to move forward and complete the NIPR system. The collective effect would be positive for PIA members.

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