In one of its first votes of the new Congress, the House of Representatives revived and overwhelmingly approved Wednesday a bill that would help insurance agents practice in multiple states.
By a 416-5 vote, the House passed a measure renewing a federal terrorism insurance program that contained a provision establishing the National Association of Registered Agents and Brokers, a clearinghouse for insurance professionals who want to register in a state outside their own.
The bill
died in the Senate last month at the end of the lame-duck session of Congress when Sen. Tom Coburn, R-Okla., objected to it coming to the floor for a vote. Mr. Coburn, who has now retired, opposed the bill because it didn't let states opt out of the registry mechanism.
The measure has regained momentum because lawmakers are concerned about the lapse of terrorism insurance. The insurance registry is along for the ride.
The Senate will likely address the bill this month, said Jill Hoffman, assistant vice president for federal government relations at the National Association of Insurance and Financial Advisors.
“We are not aware of any objections to our provision in the bill,” Ms. Hoffman said. “The will of the Senate right now is to move this as soon as possible.”
But one stumbling block could be opposition from Sen. Elizabeth Warren, D-Mass., over changes to the Dodd-Frank financial-reform law that are contained in the bill.
The insurance registry has been called the
biggest industry reform in more than a decade by its backers, which include NAIFA and the Insured Retirement Institute.
Insurance agents can join NARAB if they have not had any disciplinary history and have passed a federal background check. They can then apply for reciprocal producer licenses in other states. They would have to pay each state's fee as well as the NARAB fee, which has not yet been determined.
“It would achieve much-needed reciprocity in producer licensing and help policyholders by permitting greater competition among agents and brokers,” NAIFA, IRI and other insurance groups wrote in a Jan. 7 letter to House leaders.
