Producer Licensing (EX) Task Force
Executive (EX) Committee

2009 Charges

The Mission of the Producer Licensing Task Force is to (1) develop and implement uniform standards, interpretations and treatment of producer and adjuster licensees and licensing terminology; (2) monitor and respond to developments related to licensing reciprocity; (3) coordinate with industry and consumer groups regarding priorities for licensing reforms; and (4) coordinate and consult with the National Insurance Producer Registry (NIPR) Board of Directors to develop and implement uniform producer licensing initiatives, with a primary emphasis on encouraging the use of electronic technology.

1. Monitor progress on late 2008 recommendations to NIPR, which included (1) working closely with NAIC Market Regulation Division and Producer Licensing Working Group to identify areas in state’s electronic business rules that do not appear to comply with reciprocity or uniformity standards, (2) development of uniform set of electronic processing standards (business rules) to facilitate “true uniformity” versus “virtual uniformity,” (3) central location for submission of company contract information (i.e., appointments/contracts database), (4) coordination and/or tracking of multi-state insurance examination, (5) central location for submission of national criminal background check status information and (6) central location to submit continuing education and pre-licensing course information—Essential
2. In conjunction with the Producer Licensing Coalition, work closely with NIPR, to encourage full utilization by all states and producers of NIPR products and services including individual and business entity resident and nonresident licensing, Address Change Requests, Attachments Warehouse, and Administrative Reporting (when available)—Essential
3. Finalize the evaluation of the key findings and issues regarding disparate business entity licensing laws, regulations and practices identified in the state producer licensing assessments by comparing the administrative burdens with the consumer protections arising from the licensing of business entities, and provide policymaking recommendations by the 2009 Fall National Meeting for simplifying and standardizing the business entity licensing process, considering all options ranging from elimination of the licensing of business entities to elimination of components of the process such as licensing by line of authority or by each branch location—Essential
4. Develop a strategy plan by the 2009 Winter National Meeting to implement fingerprinting in all states, the suggested deadline for implementation and identify what additional resources from state insurance regulators, industry and consumer groups will be committed to this effort—Essential
5. Facilitate quarterly roundtable discussions with the state Producer Licensing Directors for the exchange of views, opinions and ideas on producer licensing activities in the states and at the NAIC—Essential
6. Appoint the NARAB (EX) Working Group to finalize the evaluation of the reciprocity standard developed by the NAIC’s 2002 NARAB (EX) Working Group and make final recommendations by the 2009 Summer National Meeting for revisions or additions to the standard to address the issues identified in the Producer Licensing Assessment Aggregate Report of Findings including the various state requirements that are imposed upon non-residents but may not have been specifically addressed in the 2002 reciprocity standard. Provide a recommended plan by the 2009 Summer National Meeting for accomplishing the certification process for states regarding any revisions or additions to the 2002 reciprocity standard—Essential
7. Conduct additional outreach with the four remaining jurisdictions that have not met the licensing reciprocity mandates of the Gramm Leach Bliley Act (GLBA) to identify specific barriers for these states implementing licensing reciprocity; obtain specific detail from the industry representatives of the Producer Licensing Coalition regarding what solutions and resources they are willing to provide to address these specific barriers; and obtain specific detail regarding what solutions and resources the jurisdictions that have not satisfied the reciprocity mandates of GLBA will provide to address the specific barriers—Essential
8. Appoint the Producer Licensing (EX) Working Group to develop uniform guidelines for background check reviews by the 2009 Summer National Meeting—Essential
9. Review process for examination development and develop uniform standards by 2009 Fall National Meeting for the delivery of examinations, updating of examinations and passage rate for examinations—Essential
10. Review limited line licensing issues with particular focus on the following: (1) the establishment of a limited line that encompasses several insurance products where the business of insurance is ancillary to the business of the person offering the product, (2) the licensing requirements of individuals selling limited line insurance products, and (3) the fingerprinting of individuals selling limited line insurance products.
11. Continue to provide oversight and ongoing updates, as needed, to the State Licensing Handbook—Essential
12. In response to inquiries about state adoption and interpretation of the Producer Licensing Model Act (PLMA), provide updates to the frequently asked questions document regarding the PLMA—Important
13. Provide ongoing maintenance and review of reciprocity guidelines for continuing education providers, state review and approval of courses, with particular attention to continuing educations provided over the Internet—Important
14. Provide input and feedback to NAIC/NIPR staff regarding the development of electronic licensing applications, such as a centralized filing point for notification of administrative/criminal actions and Personalized Information Capture System (PICS) alerts for state regulators—Essential
15. Serve as informal focus group with NAIC staff for the development and delivery of a State Licensing Handbook training for state insurance departments—Essential
16. Receive updates from the NAIC/Industry Producer Licensing Coalition on its work to continue to serve as the forum for NAIC membership and industry to exchange views, opinions and ideas on producer licensing priorities, such as professional standards of producers, state licensing laws, state administrative procedures and federal legislation—Essential
17. Follow up on 2008 state assessment report by conducting Commissioner-led outreach to each of the states, including the two regulators who performed the original assessment and two industry representatives. Information provided by NAIC staff support from the state’s PLMA and 2008 assessment report will be used to identify the top priority concerns to convey to the Commissioner for consideration of 2009 reform legislation. Goal will be to provide a status report on this effort to the NAIC membership at the February 2009 Commissioners Conference—Essential
18. Continue to pursue national producer trades’ endorsement of professional licensing standards—Essential
19. Continue its discussions on ways to further improve processes the industry believes are administratively burdensome to producers, including the appointment process, the examination/testing process and ways to encourage state and local industry organizations to actively support full adoption of the major lines of authority and elimination of non-core limited lines of authority—Essential
20. Identify the uniform licensing standards that are not priorities for industry and do not impede the implementation of licensing reciprocity, such as pre-licensing education or waivers/exemptions from continuing education to ensure all parties focus resources on the essential priorities for licensing reforms—Important