As we previously reported here, the National Association of Registered Agents and Brokers Reform Act of 2013 (S. 534) was introduced to the Senate and the House earlier this year and, if passed into law, would establish the National Association of Registered Agents and Brokers (“NARAB”), a nonprofit corporation to license nonresident agents and brokers. The main benefit of NARAB would be that agents and brokers who are already licensed in one state could join NARAB and become licensed in all other states.
On June 6, S. 534 cleared the Senate Banking, Housing and Urban Affairs Committee (the “Committee”) by a unanimous vote and is now heading to the Senate floor for a full vote.
Under the current draft of S. 534, NARAB would have a board of directors consisting of eight state insurance regulators and five insurance industry representatives, but no consumer advocates. Before it cleared the Committee, an amendment proposed by Senator Elizabeth Warren (D-MA) was added. The amendment removed the following NARAB board of directors requirements: (i) two board members must be representatives of property and casualty insurance producers; (ii) one member must be a representative of life or health insurance producers; (iii) one member must be a representative of property and casualty insurers; and (iii) one member must be a representative of life or health insurers. In place of those requirements, Senator Warren’s amendment simply requires three board members have “demonstrated expertise and experience with property and casualty insurance licensing” and two board members have “demonstrated expertise and experience with life and health producer licensing.”