Monica J. Lindeen, National Association of Insurance Commissioners (NAIC) Vice President and Montana Insurance Commissioner, testified today in support of a proposal to streamline insurance producer licensing. The hearing, held by a Senate Committee on Banking, Housing, and Urban Affairs Subcommittee, was titled Streamlining Regulation, Improving Consumer Protection and Increasing Competition in Insurance Markets.
"Insurance producers play a very important consumer resource role in the U.S. insurance system. As the regulators of more than 6.8 million individuals and business entities licensed to provide insurance services in the United States, NAIC members recognize that streamlined non-resident producer licensing is an important goal," stated Lindeen.
Lindeen's testimony outlined a number of key components of the legislation and indicated that the current bill, commonly called NARAB II, is an improvement over earlier versions.
"These provisions preserve state regulatory authority to police insurance markets and protect consumers while streamlining a process for producers - this is why we support the bill," Lindeen said.
Legislation before Congress would create a non-profit entity to streamline non-resident market access for insurance agents and producers while ensuring that producers remain subject to the full range of state market conduct authorities to police bad actors through the creation of a National Association of Registered Agents and Brokers (NARAB). The bill is intended to preserve state-based insurance regulation and consumer protections-it does not create a federal regulator for insurance and the states would retain their regulatory authority over consumer protection, market conduct and unfair trade practices.