Amendment To Gut Multi-State Licensing Provision Soundly Defeated

In a historic win for independent insurance agents, on January 30 the U.S. Senate acted on two of the top legislative priorities of the Big "I" - flood insurance and agent licensing reform - in one fell swoop. The Senate passed S. 1926, the "Homeowner Flood Insurance Affordability Act of 2013," in a 67-32 vote.  The bipartisan bill would make changes to Biggert-Waters in order to help with the "sticker shock" some consumers are facing regarding two provisions that create drastic premium increases.          The bill passed by the Senate also included the text of "NARAB II" to streamline the nonresident licensing process for agents and brokers. This legislation has been a top priority for the Big "I" for a number of years, and this marks the first time it has been passed by the Senate. The Big "I" is especially encouraged that an amendment by Sen. Tom Coburn (R-Okla.), which would have allowed states to opt out of NARAB II, was resoundingly defeated in a 24-75 vote . Both Nebraska Senators voted against the bill, but also against the Coburn amendment.  The full story. 

A federal judge granted a preliminary injunction last Thursday against Missouri's law requiring a state license to serve as a navigator to help consumers sign up for coverage through the new health insurance marketplace. U.S. District Judge Ortrie D. Smith's ruling also denied the state's motion to dismiss the lawsuit. The judge's ruling said that since Missouri decided not to run its own exchange, it can't impose additional requirements or limitations. Although the ruling only applies to Missouri's law, it could have major implications for other states that passed similar laws or regulations. Missouri is among 17 states with federally-run marketplaces that enacted legislation imposing requirements on navigators, including Nebraska.  IIAN was instrumental in getting the Navigator Registration Act passed into law by the Unicameral last yea.  

   Regarding the Missouri decision, Larry Case, executive vice president of the Missouri Association of Insurance Agents (MAIA), said the ruling eliminates any meaningful oversight for navigators and flies in the face of state regulation of insurance. "In many respects, the judge has created a Wild West 'buyer beware' environment for consumers who deal with navigators," he said. "This provides opportunity for convicted felons or unscrupulous individuals who may have been denied an insurance license or had their license revoked to become a navigator or certified application counselor and gain access to personal information of Missouri consumers."