Washington — The House Financial Services Capital Markets Subcommittee has passed H.R. 5611, the NARAB Reform Act, to the full committee. The act, introduced by Reps. David Scott (D-Ga.) and Geoff Davis (R-Ky.), is intended to reform nonresident agent licensing.
Supporters of the legislation say it will ease nonresident insurance agent and broker licensing while preserving the rights of states to supervise and discipline insurance agents and brokers.
“The most serious regulatory challenges facing our members are the redundant, costly and contradictory requirements that arise when they seek licenses on a multi-state basis,” says Robert Rusbuldt, president & CEO of the Independent Insurance Agents & Brokers of America. “The NARAB Reform Act solves these problems through targeted reform and modernization of nonresident agent and broker licensing without affecting resident licensing.”
The legislation modifies the original NARAB provisions of the Gramm-Leach-Bliley Act to immediately establish NARAB as a private, non-profit entity managed by a board composed of insurance regulators and marketplace representatives. The NARAB board created by this legislation would not be part of, or report to, any federal agency, and would not have any federal regulatory power.
Source: Independent Insurance Agents & Brokers of America
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