House Passes Neugebauer’s Bipartisan Legislation to Streamline Insurance Licensing

Sep 10, 2013 Issues: Economy and Jobs, Financial Services

WASHINGTON, DC—A bill by Congressman Randy Neugebauer (R-TX) to streamline insurance regulation overwhelmingly passed the House of Representatives today, by a vote of 397 to 6.  H.R. 1155, the National Association of Registered Agents and Brokers (NARAB) Reform Act of 2013, creates a national clearinghouse for insurance agents and brokers to obtain licenses to operate in multiple states. 

“This bill makes it easier for insurance agents and brokers to operate across multiple states so they can better serve their customers,” Neugebauer said. 

Currently, there are redundant, costly, and occasionally contradictory requirements for licensing in different states.  For agents offering insurance to clients who do business in more than one state, obtaining multiple licenses is time-consuming and expensive. 

“On average, multi-state agents sell insurance in eight states,” Neugebauer explained.  “That means eight different applications, eight different procedures for admittance, eight separate background checks, and a multitude of inconsistent standards and duplicative processes.”

H.R. 1155 is a bipartisan bill that sets up a single clearinghouse run by the National Association of Registered Agents and Brokers (NARAB).  Insurance agents would only need to be licensed twice—once in their home states and once by NARAB—to work in any state.

“This directly benefits consumers and small businesses,” Neugebauer said.  “By making the licensing process more efficient, NARAB increases competition and improves choices for policyholders.”   

NARAB II is supported by all stakeholders, including the state insurance regulators, because it is seen as the most effective, efficient way to enable insurance agents and brokers to be licensed on a multi-state basis while retaining essential state regulatory authority.