NARAB Legislation Sees Positive Movement

An agent friendly bill that would enable consumers to continue to work with agents they trust, no matter where they live in the United States, is on the right track to pass in this Congress.

Legislation set to establish the National Association of Registered Agents and Brokers (NARAB), a clearinghouse intended to reform agent licensing would allow much greater flexibility for agents when servicing their clients.  Under NARAB, an agent would be able to hold a home state license and then is qualified to apply for NARAB membership that satisfies the NARAB membership requirements. A NARAB member would then be permitted to get a corresponding license in any non-home state provided that they pay the requisite non-home state licensure fee through NARAB.

The industry has been seeking enactment of this legislation for more than 20 years, as currently an insurance agent who has clients in more than one state has to obtain licenses in each of those states, and the regulatory process varies from state-to-state.  If the client moves to another state, even if it is a neighboring state, the agent must certify themselves to comply with an additional state’s rules and regulations.  This process is both costly and timely.

In comparison to year’s past in deliberating this issue, this year is proving most likely for passage of the bill that would simplify the licensing procedure for agents doing business in multiple states. This legislation is rumored to move in December of this year, and we will continue to keep you up to date as this bill moves through the process at our nation’s capital.

As always, please contact our government relations team with your questions and comments. We value your feedback. Email: bbochniak@michbusiness.org or phone: (888) 277-6464