The Senate Banking Committee on Thursday unanimously approved legislation that would make it easier to obtain licenses to sell insurance in multiple states.
The measure would establish a non-profit, independent board – the National Association of Registered Agents and Brokers – as a clearinghouse for non-resident-insurance agent and broker licensing. The NARAB would provide a central location for financial advisers already registered in one state to be approved across the country, instead of having to apply in each state.
“It facilitates the ability of insurance agents to do business in other states,” said Sen. Mike Johanns, R-Neb., a co-author of the bill. The other sponsor is Sen. Jon Tester, D-Mont, chairman of the Senate Banking Subcommittee on Securities, Insurance and Investment.
The bipartisan committee vote gives the measure momentum as it heads to the Senate floor. A similar bill has been introduced in the House. Last year, the House passed NARAB legislation, but it died in the Senate.
“[T]his common-sense bill will streamline and improve the licensing process while maintaining important consumer protections and retaining states' authority to regulate the marketplace,” Cathy Weatherford, president and chief executive of the Insured Retirement Institute, said in a statement.