National Association of Registered Agents and Brokers Reform Act of 2013
Full title | To reform the National Association of Registered Agents and Brokers, and for other purposes. |
---|---|
Introduced in | 113th United States Congress |
Introduced on | March 14, 2013 |
Sponsored by | Rep. Randy Neugebauer (R, TX-19) |
Number of Co-Sponsors | 42 |
Effects and Codifications | |
Act(s) affected | Gramm-Leach-Bliley Act, NAIC Producer Licensing Model Act, District of Columbia Nonprofit Corporation Act, Federal Administrative Procedure Act |
U.S.C. section(s) affected | et seq., 18 U.S.C. |
Agencies affected | United States Senate, Executive Office of the President, United States Department of Justice, Federal Bureau of Investigation |
Legislative history | |
|
The National Association of Registered Agents and Brokers Reform Act of 2013 (H
Background
Similar legislation passed in the House in two previous congresses - H
Provisions of the bill
This summary is based largely on the summary provided by the Congressional Research Service, a public domain source.[4]
The National Association of Registered Agents and Brokers Reform Act of 2013 would amend the Gramm-Leach-Bliley Act to repeal the contingent conditions under which the National Association of Registered Agents and Brokers (NARAB) shall not be established. It then would reestablish the NARAB without those contingent conditions, converting it into a nonprofit corporation with the responsibility to prescribe, on a multi-state basis, licensing and insurance producer qualification requirements and conditions.[4]
The bill is written so that the individual state in the United States would retain their state-level regulatory authority over: (1) licensing, continuing education, and other qualification requirements of non-NARAB producers; (2) resident or nonresident producer appointment requirements; (3) supervision and disciplining of such producers; and (4) setting of licensing fees for insurance producers.[4]
The bill would authorize the NARAB to: (1) establish membership criteria, including a mandatory criminal background check of the producer's Federal Bureau of Investigation (FBI) identification record for state-licensed insurance producers, and (2) deny membership to a state-licensed insurance producer on the basis of the criminal history information obtained, or where the producer has been subject to certain disciplinary action.[4] It would prohibit the NARAB from establishing criteria that unfairly limit the ability of a small insurance producer to become a member of NARAB.[4] It does authorize the NARAB to establish separate classes of membership and membership criteria, and requires it to do so for business entities.[4] The bill would authorize the NARAB to deny membership to any state-licensed insurance producer for failure to meet membership criteria.[4]
The bill would state that NARAB membership authorizes an insurance producer to engage in the business of insurance in any state for any lines of insurance specified in the producer's home state license, including claims adjustments and settlement, risk management, and specified insurance-related consulting activities.[4] But, it retains state regulatory jurisdiction regarding: (1) consumer protection and market conduct, and (2) state disciplinary authority.[4]
The bill would require the NARAB to: (1) receive and investigate consumer complaints, maintaining a toll-free telephone number; and (2) refer any such complaint to the state insurance regulator.[4]
Finally, the bill would authorize the NARAB to coordinate with state insurance regulators to establish: (1) a central clearinghouse, and (2) a national database for the collection of regulatory information concerning the activities of insurance producers.[4]
Procedural history
House
The National Association of Registered Agents and Brokers Reform Act of 2013 (H
Debate and discussion
Rep. Randy Neugebauer (R, TX-19) explained why he was in favor of the bill by saying, "On average, multi-state agents sell insurance in eight states... that means eight different applications, eight different procedures... and separate background checks and multiple, inconsistent standards and duplicative processes."[1] Rep. David Scott (D-GA), a cosponsor of the bill, argued that it would make insurance costs lower for consumers; he also believed it was an important measure because people no longer stay in one place, but move from state to state.[1]
The bill was also supported by the Independent Insurance Agents & Brokers of America and the National Association of Mutual Insurance Companies.[3]
See also
- List of bills in the 113th United States Congress
- Insurance
- History of insurance
- Gramm–Leach–Bliley Act
- Insurance in the United States
- List of United States insurance companies
Notes/References
- 1 2 3 4 5 Kasperowicz, Pete (September 10, 2013). "House votes to streamline cross-state insurance sales". The Hill. Retrieved September 11, 2013.
- ↑ "H.R. 1155 – Legislative Digest". House Republican Conference. Retrieved September 11, 2013.
- 1 2 Postal, Arthur D. "NARAB II Bill Passes in the House". Property Casualty 360. Retrieved September 11, 2013.
- 1 2 3 4 5 6 7 8 9 10 11 "H.R. 1155 – Summary". United States Congress. Retrieved September 11, 2013.
- 1 2 3 "H.R. 1155 – All Actions". United States Congress. Retrieved September 11, 2013.
External links
Wikisource has original text related to this article: |
- Library of Congress – Thomas H.R. 1155
- beta.congress.gov H.R. 1155
- GovTrack.us H.R. 1155
- OpenCongress.org H.R. 1155
- WashingtonWatch.com H.R. 1155
- House Republicans' legislative digest on H.R. 1155
- Insurance Agent Licensing: Overview and Background on Federal “NARAB” Legislation Congressional Research Service
This article incorporates public domain material from websites or documents of the United States Government.