Big ‘I’-Led Coalition Urges Movement on NARAB Board

Earlier this week, the Big “I” and six other insurance trade associations sent a letter to the White House and Department of Treasury to request that the Trump Administration move forward with appointments to the board of directors for the National Association of Registered Agents and Brokers (NARAB). The Big “I” has also met with Treasury Department staff regarding NARAB.

In 2015, Congress passed bipartisan legislation—championed by the Big “I”—to establish NARAB and help alleviate the burden licensing compliance puts on insurance businesses, especially small businesses. Once operational, NARAB will provide a much needed one-stop licensing compliance mechanism for insurance professionals operating on a multistate basis, while preserving the longstanding authority of states to oversee insurance agents and brokers.

Before NARAB can begin operation, a board of directors must be appointed. President Trump must appoint board members with the advice and consent of the U.S. Senate. The NARAB enacting statue directed the President to appoint an initial board soon after passage, but that deadline has passed. The Obama Administration ultimately nominated 10 individuals, but the Senate failed to act on the nominees. Therefore, the Trump Administration must put forth new nominations.

The Department of Treasury previously expressed support for moving forward with NARAB. In a 2017 report, the department acknowledged the benefits of NARAB, stating that it “should spur economic growth” and reduce administrative redundancies, ultimately resulting in additional consumer choice.

The Federal Insurance Office (FIO) also supports moving forward with NARAB appointments. The Federal Advisory Committee on Insurance, which is a committee of state insurance regulators and insurance professionals that advises the FIO on important insurance matters, also supports moving forward. A Big “I” member serves on the advisory committee.

The Big “I” will continue to advocate before the Trump Administration and Congress for the establishment of NARAB.

Jennifer Webb is Big “I” federal government affairs counsel.