This summary is based largely on the summary provided by the Congressional Research Service, a public domain source. The National Association of Registered Agents and Brokers Reform Act of 2013 would amend the
Gramm-Leach-Bliley Act to repeal the contingent conditions under which the National Association of Registered Agents and Brokers (NARAB) shall not be established. It then would reestablish the NARAB without those contingent conditions, converting it into a nonprofit corporation with the responsibility to prescribe, on a multi-state basis, licensing and insurance producer qualification requirements and conditions. The bill is written so that the individual state in the United States would retain their state-level regulatory authority over: (1) licensing, continuing education, and other qualification requirements of non-NARAB producers; (2) resident or nonresident producer appointment requirements; (3) supervision and disciplining of such producers; and (4) setting of licensing fees for insurance producers. The bill would authorize the NARAB to: (1) establish membership criteria, including a mandatory criminal background check of the producer's
Federal Bureau of Investigation (FBI) identification record for state-licensed insurance producers, and (2) deny membership to a state-licensed insurance producer on the basis of the criminal history information obtained, or where the producer has been subject to certain disciplinary action. It would prohibit the NARAB from establishing criteria that unfairly limit the ability of a small insurance producer to become a member of NARAB. It does authorize the NARAB to establish separate classes of membership and membership criteria, and requires it to do so for business entities. The bill would authorize the NARAB to deny membership to any state-licensed insurance producer for failure to meet membership criteria. The bill would state that NARAB membership authorizes an insurance producer to engage in the business of insurance in any state for any lines of insurance specified in the producer's home state license, including claims adjustments and settlement, risk management, and specified insurance-related consulting activities. But, it retains state regulatory jurisdiction regarding: (1) consumer protection and market conduct, and (2) state disciplinary authority. The bill would require the NARAB to: (1) receive and investigate consumer complaints, maintaining a toll-free telephone number; and (2) refer any such complaint to the state insurance regulator. Finally, the bill would authorize the NARAB to coordinate with state insurance regulators to establish: (1) a central clearinghouse, and (2) a national database for the collection of regulatory information concerning the activities of insurance producers. ==Procedural history==