NCOIL Passes Producer Licensing Resolution, Defers Nat Cat Resolution
During the National Conference of Insurance Legislators (NCOIL) State-Federal Relations committee meeting, legislators discussed and then passed a Resolution Urging Producer Licensing Modernization. PIA National’s David M. Eppstein, Esq. testified in favor of the resolution. He said that legislators should go back to their states and make sure they have the Producer Licensing Modernization Act (PLMA) in place and are interpreting it according to the NAIC producer licensing handbook. States should also make sure they are fully utilizing NIPR.
“If states do these things, it would go a long way toward helping us achieve our goal of licensing reciprocity and uniformity,” Eppstein said. The resolution urges state legislators and regulators to work together to review existing producer licensing statutes and regulations, and to eliminate any unnecessary licensing barriers. The resolution recognizes that despite continued state efforts, legal and regulatory hurdles remain that can make it difficult for a licensed insurance producer to obtain a license in another state.
NCOIL President Sen. Carroll Leavell (NM) said, “NCOIL feels it is imperative that these obstacles to resident and non-resident licensing be eliminated. We feel that states are best equipped to remove existing licensing barriers, and should prove to the feds that such intervention is unwarranted. It is our hope that in sending this resolution to legislators, regulators, and governors, we can increase awareness and promote necessary modernization. The resolution refers to NARAB II, but NCOIL has not taken a position on that legislation. The NAIC supports NARAB II with their suggested changes. PIA National supports NARAB II and remains committed to keep working with the states to continue making progress to help licensed agents more efficiently operate across state lines.
Nat Cat resolution deferred: The Property and Casualty Committee, chaired by state Rep. Steve Riggs (KY), deferred action on a proposed Natural Catastrophe resolution sponsored by state Rep. Greg Wren (AL). Representative Wren’s resolution points out that states cannot rely on the federal government for post disaster assistance because of budget constraints and therefore states should take it upon themselves to prepare now for natural catastrophes. PIA supports the resolution generally and will provide comments to NCOIL to help improve it. Our members are strong supporters of state regulation but we also recognize the critical role of the government in helping prepare for, and recover from, natural catastrophes.
Among other actions taken by NCOIL at its July 12-15 meeting, it:
- debated and deferred until the Annual Meeting a proposed model on third-party litigation financing;
- adopted amendments to an unclaimed life insurance benefits model to stay abreast of recent developments.