This past Thursday, January 30th, legislation passed the Senate which would create a non-profit entity, The National Association of Registered Agents and Brokers (NARAB). This change had been tacked onto the much discussed Flood Insurance Delay also known as the “Homeowner Flood Insurance Affordability Act of 2014.”
In the past the House has already passed a bill for NARAB three times, but the Senate, which was preoccupied with other issues, never followed through. Due to NARAB being attached to the Flood Insurance Delay bill the Senate is finally getting around to it.
NARAB aims to make it easier for agents and brokers to become licensed in other states than the one they currently reside. It will provide for streamlined non-resident insurance agent and broken licensing while preserving state insurance regulation and consumer protections, according to Robert Rusbuldt, Chief Executive Officer and President of Independent Insurance Agents & Brokers of America, Inc.
NARAB appears to have overwhelming support from those in the insurance industry. It will keep the same strict guidelines but allow for a more streamlined system that should strengthen the licensing process. According to an issue brief by the National Association of Insurance Commissioners (NAIC) they “[recognize] the mechanics of non-resident producer licensing can be further streamlined by federal action, but this should not undermine state regulatory authorities to protect insurance consumers and take enforcement action against malfeasant producers.”
The NARAB board, under the most recent bill, will consist of 13 members, eight of which are state insurance commissioners appointed by the President. The remaining five will consist of insurance industry representatives.
For a more detailed article about NARAB hopes to accomplish and how check out this article from the Insurance Journal from October 3, 2013.