BIG “I” Applauds House Subcommittee For Action on Insurance Regulatory Reform Legislation
Scott/Davis NARAB
legislation will benefit agents and consumers
WASHINGTON, D.C., July 9, 2008— The
Independent Insurance Agents & Brokers of America (the Big “I”)
applauds House Financial Services Capital Markets Subcommittee
Chairman Paul Kanjorski and other Members of the Subcommittee
for approving legislation to modernize insurance regulation,
especially H.R. 5611, the NARAB Reform Act, which will reform
nonresident agent licensing. Along with H.R. 5611, today
the Subcommittee approved H.R. 5840, the Insurance Information
Act.
“The Big ‘I’ has long supported the use of
targeted federal legislation to reform the state system of
insurance regulation, and we believe that these bills are good
examples of such reform,” says Robert Rusbuldt, Big “I”
President & CEO. “The most serious regulatory challenges
facing our members are the redundant, costly and contradictory
requirements that arise when they seek licenses on a multi-state
basis. The NARAB Reform Act solves these problems
through targeted reform and modernization of nonresident agent
and broker licensing without affecting resident licensing.”
The bipartisan NARAB Reform Act, introduced
by Reps. David Scott (D-Ga.) and Geoff Davis (R-Ky.) earlier
this year, would provide for nonresident insurance agent and
broker licensing while preserving the rights of states to
supervise and discipline insurance agents and brokers.
This legislation modifies the original NARAB provisions of the
Gramm-Leach-Bliley Act to immediately establish NARAB as a
private, non-profit entity managed by a board composed of
insurance regulators and marketplace representatives. The
NARAB board created by this legislation would not be part of, or
report to, any federal agency and would not have any federal
regulatory power.
“We believe that this type of targeted
federal legislation makes the appropriate reforms to the
marketplace and improves insurance regulation without having to
take the unprecedented path of creating a new federal
regulator,” says Charles E. Symington, Jr., Big “I” senior vice
president of government affairs.
The Big “I” is an advocate for the state
system of insurance regulation and continues to oppose federal
regulation, optional or otherwise. However, the Big “I”
believes that the state system cannot appropriately and
effectively address certain problems on its own and feels that
there is a vital role for Congress to play in helping to
modernize state regulation and make it more efficient.
“As indicated
by the industry and congressional support for these bills and
the Subcommittee’s action today, targeted reform is the most
viable option for insurance regulatory reform. When enacted, the
NARAB bill will result in a more efficient and effective
regulatory system, which is good for consumers,” says Symington.
“The Big ‘I’ is pleased that the Subcommittee passed these
bills, and we look forward to continuing to work with Congress
on these and other targeted reform proposals.”
Founded in 1896, IIABA
(the Big “I”) is the nation’s oldest and largest national
association of independent insurance agents and brokers,
representing a network of more than 300,000 agents, brokers and
their employees nationally. Its members are businesses that
offer customers a choice of policies from a variety of insurance
companies. Independent agents and brokers offer all lines of
insurance—property, casualty, life, and health—as well as
employee benefit plans and retirement products. Web address:
www.independentagent.com.
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