In a bid to make it easier for producers to do business acrossstate lines, the U.S. House of Representatives last week passed theNational Association of Registered Agents and Brokers Reform Act ona voice vote.

There is no companion legislation yet introduced in theSenate.

H.R. 2554 is an amendment to 1999′s Gramm-Leach-Bliley Act,which included a NARAB provision–but one which kept the agencydormant unless a majority of states failed to adopt uniformity inlicensing.

This new bill establishes NARAB as a national, nonprofitcorporation to allow for agent licensing standardization acrossstate lines. Through NARAB, one set of licensing, continuingeducation and other insurance producer qualification standards canbe adopted and applied. Producers would be allowed to conductbusiness in any state, in any line of insurance they are permittedto in their home state.

States retain regulatory jurisdiction over consumer protection,market conduct and unfair trade practices. They also retain theirrights over licensing, supervision, disciplining and setting oflicensing fees for insurance producers.

"Although the state insurance regulatory system has workedeffectively to ensure insurer solvency and look afterpolicyholders, the system does need improvement in the area ofagent licensing," Robert Rusbuldt, chief executive officer of theIndependent Insurance Agents and Brokers of America, said in astatement.

"H.R. 2554 would reform and improve the current system ofinsurance regulation by providing one-stop, nonresident licensingreciprocity," he added.

Joel Wood, senior vice president for government affairs for theCouncil of Insurance Agents and Brokers–which pioneered the NARABconcept long before it became part of the initial GLB Act–said hisgroup was very happy the bill had reached the floor after a longfight for agent licensing reciprocity.

Marliss McManus, senior federal affairs director for theNational Association of Mutual Insurance Companies, said the bill"provides common sense reforms that level the playing field betweenstates for agents, allowing licensed agents to offer their servicesacross all jurisdictions without impeding on the regulatory rightsof the states themselves."

"As Congress continues to study and debate the future ofregulatory reform of the property and casualty industry, thisapproach would streamline the current regulatory system andestablish uniform and consistent standards, while leaving theday-to-day regulatory control at the state level," said Mr.McManus.