Issue: Agent Licensing Reform

Date: January 8, 2015

Action Taken: As one of their first acts of the new Congress, the U.S. House of Representatives and U.S. Senate have passed long-time NAIFA-supported agent licensing reform legislation known as the National Association of Registered Agents and Brokers (NARAB II). The bill, contained in the reauthorization of the Terrorism Risk Insurance Act (TRIA), passed the House yesterday by a vote of 416-5. Today, the Senate passed the legislation by a vote of 93-4. NARAB II, together with TRIA reauthorization, is now headed to the President’s desk to be signed into law.

Background: NARAB II would create an organization whose specific jurisdiction would be the oversight of insurance producer non-resident licensing standards on a national–not federal–level. It will establish much-needed efficiencies for the out of state licensing process while maintaining state regulation of insurance. NARAB will be run by an independent, thirteen member board. The Board will establish non-resident licensing standards for each line of authority. NARAB membership will be voluntary. Applicants will be required to pass a federal criminal background check. Once attained, NARAB membership grants non-resident reciprocity in all 50 states, the District of Columbia, and other U.S. insurance jurisdictions.

Next Steps: Once signed into law, NARAB will likely take up to two years to become operational. Members of the governing board must be appointed, eight of whom will be state insurance commissioners, and five others whom must have relevant experience and expertise in producer licensing. NAIFA and its coalition partners will advocate to ensure that agents have sufficient representation on the board and will be providing input on the membership requirements every step of the way.

Save the Date: NAIFA will host a webinar, NARAB Implementation: What Insurance Agents and Brokers Need to Know, on Monday, January 26th at 3:00 PM EST. Stay tuned for a subsequent email invitation to participate. Other informational and promotional materials will be provided as they become available.

NAIFA Staff Contact: Jill Hoffman, Assistant Vice President – Federal Government Relations, at; and, Kyle Kunkler – Federal Government Relations Program Manager at

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