Sen Mike Johanns teamed up with Sen. Jon Tester (D-Mont.) Tuesday to introduce legislation aimed at increasing insurance market options and consumer choice while working to reduce insurance costs.
According to Johanns, this legislation would expand the market for consumers and is expected to lower prices through increased competition because insurance brokers can more easily register across state lines.
Johanns said, "Increasing competition and cutting compliance costs will help reduce insurance rates for consumers. This bill also improves consumer protections and, critically, preserves the authority of states to manage their insurance markets."
"Streamlining the licensing of registered agents and brokers while maintaining state regulation of the insurance industry will increase competition in the insurance market and better protect consumers," added Tester. "With the support of both the insurance industry and regulators, our bill will improve the licensing process and provide consumers with a better product at a lower price."
The legislation would formally create The National Association of Registered Agents and Brokers as a non-profit, independent board comprised of state insurance commissioners and insurance market representatives.
After passing background checks in their home states, insurance agents could apply for NARAB membership, allowing them to sell insurance in other states. The NARAB would also be able to levy disciplinary measures on agents who do not adhere to board guidelines.