Thursday, March 14, 2013

NAPSLO Applauds NARAB II Introduction in House and Senate

The National Association of Professional Surplus Lines Offices (NAPSLO) applauds the introduction of the National Association of Registered Agents and Brokers Reform Act of 2013, commonly referred to as NARAB II. The legislation that was introduced March 12, 2013 in both the United States House of Representatives and the Senate will streamline agent and broker licensing nationwide.

NARAB II is designed to create a non-profit entity governed by a board of state insurance commissioners and industry representatives with a goal of applying licensing, continuing education and nonresident insurance producer standards on a multi-state basis while preserving the laws of individual states.

“NARAB II has been a major legislative priority for NAPSLO members for some time,” said David Leonard, Co-Chair of NAPSLO’s Legislative Committee. “We are very excited to see it receive such powerful, bipartisan support in its introduction, and look forward to working with members of Congress to see it passed into law.”

Identical bills were introduced by Senators Jon Tester (D-Montana) and Mike Johanns (R-Nebraska) in the Senate and by Representatives Randy Neugebauer (R-Texas) and David Scott (D-Georgia) in the House. Both bills were introduced on the same day in a powerful show of support, receiving 41 sponsors in the House and 14 sponsors in the Senate and drawing Members from both sides of the aisle. NAPSLO applauds the leadership of these Congressional leaders for the work they have done thus far, and looks forward to working with them to see this legislation become law.

NAPSLO joined a number of other organizations in a coalition to educate members and advocate for the bill on Capitol Hill.

“Our Association and its members have put significant effort into advancing this legislation, taking advantage of every opportunity to highlight its impact and importance to the industry,” said NAPSLO Executive Director Brady Kelley. “There is still a lot of work to be done, but NAPSLO is committed to continuing to play a key role in the success of this legislation.”

Pursuant to NARAB II, state regulators would continue their role as the primary regulators of insurance producers and enforcers of consumer protection laws. NARAB will not report to the federal government nor possess any federal regulatory power. Membership would be on a voluntary basis, with those that join enjoying the benefits of multi-state licensing. NARAB membership is contingent on meeting rigorous standards and ethical requirements.

“NAPSLO is a strong advocate of both the state-based system of insurance regulation and measures that will increase the uniformity and efficiency of that system,” said James Drinkwater, Co-Chair of NAPSLO’s Legislative Committee. “We call on Congress to quickly approve this measure and build on the work of previous legislative sessions toward more efficient insurance markets.”

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