Legislative Spotlight

March 2013 • Vol. 5, Issue 3

LEGISLATIVE SPOTLIGHT is produced by NAIFA and is supplied to the Society of Financial Service Professionals as a collaborative effort that seeks to raise federal and state regulatory awareness for financial service professionals. The essential purpose is to facilitate understanding and a more fruitful dialogue with constituents and/or clients with regard to these important issues.

Speaking as one, we can and will make a difference.

Comments on Legislative Spotlight: Contact Ron Panneton with comments or suggestions concerning this newsletter.

Streamlined Agent Licensing Efforts Gain Traction

NAIFA-backed legislation to establish the National Association of Registered Agents and Brokers (NARAB) is expected to be introduced in the coming weeks. This common-sense legislation would create a streamlined agent and broker licensing system that strengthens the competitive insurance market while maintaining important consumer protections. In an increasingly mobile society, NARAB would allow agents and brokers to more efficiently operate on a multi-state basis.

Specifically, the legislation would create a nonprofit board for insurance agents and brokers to obtain approval to operate on a multi-state basis. NARAB would be governed by a panel dominated by state regulators and would establish standards for membership that exceed the existing requirements in any state. A prospective NARAB member would be required to be fully licensed in his or her home state and satisfy rigorous membership criteria, and an approved NARAB member could utilize the association to obtain the regulatory approval necessary to operate in any other selected jurisdiction.

Why It Matters: Most producers are licensed in multiple states and keeping up with the licensing requirements of each state are often redundant and costly. It makes sense to eliminate unnecessary costs and duplicative regulation that make it more difficult for the producer to serve the clients’ needs.

To Learn More: Contact Diane Boyle at dboyle@naifa.org.

NAIFA Members Have 170 Meetings on Capitol Hill

More than 150 insurance agents and financial advisors from around the country attended NAIFA’s annual Political Involvement/Political Action Training Meeting in Washington, DC, January 27-29, 2013. The final day of the meeting, January 29, culminated with visits to congressional offices.
NAIFA members held more than 170 meetings with U.S. senators, representatives and staff. Topics of discussion focused on the essential protection and security life insurance products provide to 75 million American families and the importance of maintaining the current tax treatment of these products when Congress considers tax-reform proposals later this year. Of those 172 meetings, 63 were with the offices of members of Congress serving on four key legislative committees.

Why It Matters: NAIFA must consistently educate lawmakers about the unintended and adverse consequences of raising taxes on insurance and long-term savings: less financial security for American families and businesses, more reliance on government entitlement programs, and less capital investment and economic growth.

To Learn More: Contact Magenta Ishak at mishak@naifa.org.

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