Senate Banking Committee Chairman Tim Johnson (D-SD) and Ranking Member Mike Crapo (R-ID) applauded the unanimous voice vote in Committee approving S. 534, the National Association of Registered Agents and Brokers Reform Act of 2013, also known as NARAB II. The bill will now be sent to the full Senate for approval.
"This bill is a true bipartisan product, with ideas and contributions from Committee members on both sides of the aisle," said Chairman Johnson. "The bill is a significant step toward a more efficient and well-functioning insurance licensing system. I appreciate my colleagues' cooperation on this important issue, and I thank Senators Tester, Johanns, and their staffs for their hard work moving the bill forward."
"This bill has secured broad bipartisan support from this Committee," Crapo said. "By reducing costs and increasing competition among insurance producers, we will generate lower costs and better service for consumers. I thank Senators Tester, Johanns and their staffs for their hard work on this legislation."
S. 534 will establish the National Association of Registered Agents and Brokers (NARAB), a non-profit, independent board to provide a mechanism for multistate licensing for insurance producers. Insurance agents will be able to apply for NARAB membership and become licensed to sell insurance in multiple states, but states will maintain their full authority in regulating the business of insurance. This will reduce costs and red tape for insurance agents and brokers who operate in multiple states, and will allow consumers to maintain relationships with their insurance agents if they relocate to another state.