Anthony B. Sherman, partner in our Chicago office, discusses how Congress has put in place a mechanism to streamline nonresident licensing for insurance producers.
Congress has put in place a mechanism to streamline nonresident licensing for insurance producers. The National Association of Registered Agents and Brokers Reform Act of 2015 was included in the federal legislation reauthorizing TRIA, the ‘‘Terrorism Risk Insurance Program Reauthorization Act of 2015” (H.R. 26) (TRIPRA), which President Obama signed into law on January 12, 2015. TRIPRA creates the National Association of Registered Agents and Brokers (NARAB). By becoming a member of NARAB, an insurance producer licensed in the producer’s home state1 will be authorized to act as a nonresident producer in any other state upon paying the required licensing fee. Background
Currently, after being licensed in their state of residence or home state, insurance producers seeking to solicit insurance in other states must obtain separate nonresident insurance producer licenses in each state. While the licensing requirements in each state are similar, state-specific requirements must often be satisfied. Also, while the licensing process has been made somewhat easier over the years (e.g., with the use of the National Insurance Producer Registry to submit applications), nonresident licensing remains an administratively burdensome task. NARAB is intended to address this issue. (Read more