Printer Friendly

Agent-Licensing Model Near Approval.

The National Association of Insurance Commissioners is edging closer to adopting a model law for establishing uniform licensing guidelines for agents.

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.
COPYRIGHT 2000 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2000, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Best's Review
Article Type:Brief Article
Geographic Code:1USA
Date:Jan 1, 2000
Words:238
Previous Article:SVO Revamp, New Hires Push NAIC Budget Over $45 Million.
Next Article:Financial-Services Reform Underscores Need for Unity.
Topics:


Related Articles
NAIC Weighs Agent Licenses That Would Apply Across U.S.
Staying the course: As insurers navigate the changing regulatory environment, they have set their sights on speed-to-market rules, which are in the...
From Dr. Janice Campbell. (Letters to the Editor).
Direct commercial sales authorizations for fiscal year 2002 overview.
HOUSE PANEL WARNS NAIC TO HURRY UP ON STATE INSURANCE REFORMS.
Comments on definition of permanent establishment in the OECD Model Tax Convention: October 17, 2003.
BRIEFLY.
Wine ruling a setback for consumers.
Agent, broker definitions can be misleading.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters