US – Non-resident licensing bill returns to Congress

Legislation to create a national agent and broker body for multi-state nonresident licensing was introduced in both houses of Congress early in March.

This is the second time the current version of the National Association of Registered Agents and Brokers Reform Act (NARAB II) has been dropped into the Congressional hopper. The bill was introduced last year under the same name.

The measure would create a non-profit board to which insurance agents and brokers could go to obtain approval to operate on a multi-state basis, according to nine trade groups that are backing the measure. In a joint letter to Congressional leaders, the associations point out that agents and brokers would need to be fully licensed in their home states in order to be a member. A panel of state regulators and industry representatives would govern the board and establish membership standards.

Representative Randy Neugebauer, R-Texas and 41 co-sponsors introduced the legislation in the House of Representatives as H.R. 1064, according to the THOMAS legislative information website. The bill has been referred to the House Financial Services Committee. Sen. Jon Tester, D-Mont. and 13 co-sponsors introduced the measure in the Senate as S.534, according to the same website. The bill has been referred to the Senate Banking, Housing and Urban Affairs Committee.

Shortly after introduction, leaders of two industry trade groups issued statements voicing support for the measure. Rob Smith, president of the National Association of Insurance and Financial Advisors (NAIFA) said his association “encourages and supports this commonsense approach to eliminate the duplicative and burdensome stateby– state non-resident licensing.”

Cathy Weatherford, president and chief executive officer of Insured Retirement Institute, said: “We urge all members of Congress to support and advance this common-sense legislation to secure its promise of an improved and streamlined licensing process while retaining authority for the states to regulate the marketplace.”

Representative Randy Neugebauer, R-Texas, and 41 co-sponsors introduced the legislation in the House of Representatives as H.R. 1064