An industry trade group is reprimanding federal officials for failing to act on legislation establishing a national licensing board for insurance agents and brokers.
The National Association of Registered Agents and Brokers Reform Act of 2015 (NARAB II) was passed in January 2015 as part of the Terrorism Risk Insurance Program Reauthorization Act (TRIA). The law requires President Barack Obama to appoint a governing board of 13 people, eight of whom must have a regulatory background, to oversee the licensing board. The Senate then must approve the choices.
Though the National Association of Insurance Commissioners (NAIC) submitted 14 names in April of last year, the White House has nominated just 10 of the 13 needed members.
Now, the National Conference of Insurance Legislators (NCOIL) is calling on Obama and other federal officials to continue their work in establishing the board, which is expected to simplify licensing procedures and reduce costs for agencies.
“It is disconcerting that, 18 months after enactment and 15 months after the statutory deadline to appoint members, a sufficient number of members have not yet been appointed and confirmed so the committee can even meet,” said NCOIL CEO Tom Considine.
“Because the Obama administration and the United States Senate have not fully acted, consumer and producer benefits remain unavailable.”
Once established, NARAB will act as a central clearinghouse allowing insurance producers licensed in their respective home state to sell, solicit or negotiate in every other state in which the licensed producer intends to do business.
According to an analysis from the National Association of Independent Financial Advisors, producers currently spend about 29 hours a year and $225 in licensing costs in order to meet requirements. NARAB should do much to lower these costs and increase competition among producers.
“The purpose of NARAB II is to allow agents and brokers to find the best available deal for their clients,” said Kentucky Representative and NCOIL Vice President Steve Riggs. “This delay by the administration and the Senate continues to make it more difficult to ensure customers can purchase what’s best for them. It causes a lot of unneeded frustration and I know they can do better on this.”
Under the 2015 law, the NARAB board was supposed to be appointed within 90 days of enactment. It is currently unclear whether the Senate will take any action on the nominations.
Until these actions take place, no progress can be made in setting up NARAB and making important policy and administrative decisions.
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