It provides for the establishment of the National Association of Registered Agents and Brokers ("NARAB"), a nongovernmental and nonprofit corporation created to: provide a mechanism through which licensing, continuing education, and other insurance producer qualification requirements and conditions can be adopted and applied on a multi-state basis (without affecting the laws, rules and regulations pertaining to resident insurance producers or appointments or producing a net loss of producer licensing revenues to states), while preserving the right of States to license, supervise, and discipline and establish licensing fees for insurance producers, and to prescribe and enforce laws and regulations with regard to insurance-related consumer protection and unfair trade practices.
These changes to the PLMA find their way back to the Federal Gramm-Leach-Bliley Financial Services Modernization Act of 1999 ("GLB") which threatened the states with the creation of the National Association of Registered Agents and Brokers ("NARAB") if a majority of the states did not adopt uniform or reciprocal legislation relating to agent and agency licensing within three years.
Rather, the act seeks to build upon the experience of the states and the industry with the National Association of Registered Agents and Brokers as legislated by Gramm-Leach-Bliley.
NARAB: The NARAB Working Group has progressed toward its goal of creating national standards for all states by November 2002, so Congress will not create a National Association of Registered Agents and Brokers to handle national licensing.
Under the law, if at least 29 states don't pass uniform or reciprocal licensing laws, the federal government would form the National Association of Registered Agents and Brokers.
