Working together under the umbrella of the National Association of Insurance Commissioners (NAIC), state insurance regulators seek to improve state regulation by streamlining the agent licensing system. Uniformity in agent licensing requirements would help to eliminate multiple inconsistent state licensing rules, which are a strain on producer resources. Greater uniformity in producer licensing requirements could also help more new agents join the insurance field as well as increase licensing reciprocity among states.

The enactment of the NAIC Producer Licensing Model Act (PLMA) in many states has created a solid framework for licensing reciprocity and uniformity. To provide greater uniformity in actual licensing standards and requirements, the NAIC has also adopted Uniform Resident Licensing Standards, which insurance departments and state legislatures are seeking to implement.

NAIFA is working with the NAIC to ensure that the PLMA is implemented uniformly from state to state.  NAIFA is part of an NAIC Industry Producer Licensing Coalition that focuses on licensing uniformity and reforms.  NAIFA and ACLI are also working with the NAIC to develop a Producer Licensing Best Practices Handbook for regulators, to promote uniform interpretation of the PLMA and to identify benchmarks for various segments of the licensing process.  The NAIC recently conducted an assessment of agent licensing rules nationwide, to determine where inconsistencies persist and how to address them.  One result has been the creation of an NAIC working group tasked with evaluating whether states are meeting the requirements for reciprocal licensing imposed by the Gramm-Leach-Bliley Act.

In addition, with NAIFA’s help, the NAIC has developed a model law for criminal history background checks, to help regulators weed out bad actors from the industry, while also seeking to make certain that fingerprint requirements are modernized and uniform throughout the country.