Agent-Licensing Model Near Approval.
If a majority of states do not enact reciprocal or uniform laws, then the National Association of Registered Agents and Brokers section of S900 will take that regulatory power away from state commissioners and put it into the hands of federal regulators.
During the NAIC Winter National meeting in San Francisco, the Agent Licensing Working Group of the Market Conduct and Consumer Affairs Subcommittee heard NAIC General Counsel Caroline Scott explain two avenues that states could take to avoid NARAB's enactment.
States can develop laws that are reciprocal or uniform, Scott said. While the two concepts appear to be the same, she said they are distinct under NARAB, and states are required to do one or the other.
With Scott's urging, the working group recommended reciprocity, rather than uniformity, for the commissioners to pursue as they develop the Producer License Model Act because the NAIC model law is closer to being complete through reciprocity than through uniformity.
With reciprocity, there are three provisions.
"If you're licensed and in good standing in your home state, then you can get a license in another state," Scott said. Reciprocity with continuing education and the elimination of nonresident limitations are the other two.
A group of state commissioners agreed to recommend reciprocity because it was quicker, even if they had reservations.
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|Article Type:||Brief Article|
|Date:||Jan 1, 2000|
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