Sen Mike Johanns teamed up with Sen. Jon Tester (D-Mont.) Tuesday to introducelegislation aimed at increasing insurance market options and consumer choice whileworking to reduce insurance costs.
According to Johanns, this legislation would expand the market forconsumers and is expected to lower prices through increased competition becauseinsurance brokers can more easily register across state lines.
Johannssaid, "Increasing competition and cutting compliance costs will helpreduce insurance rates for consumers. This bill also improves consumerprotections and, critically, preserves the authority of states to manage theirinsurance markets."
"Streamlining the licensing of registered agents and brokers whilemaintaining state regulation of the insurance industry will increasecompetition in the insurance market and better protect consumers," added Tester. "Withthe support of both the insurance industry and regulators, our bill willimprove the licensing process and provide consumers with a better product at alower price."
The legislation would formally create TheNational Association of Registered Agents and Brokers as anon-profit, independent board comprised of state insurance commissioners andinsurance market representatives.
After passing background checks in their homestates, insurance agents could apply for NARAB membership, allowing them tosell insurance in other states. The NARAB would also be able to levydisciplinary measures on agents who do not adhere to board guidelines.