Subcommittee on Securities

Opening Statements of Committee Members


Opening Statement of Senator Jim Bunning (R-KY)

Multi-State Insurance Agent Licensing Reforms and the Creation of the National Association of Registered Agents and Brokers (NARAB).
10:00 a.m., Wednesday, April 12, 2000 - Dirksen 538


MR. CHAIRMAN, I WOULD LIKE TO THANK ALL OF OUR WITNESSES FOR TESTIFYING TODAY.

I SUPPORTED THE NARAB AMENDMENT IN THE CONFERENCE COMMITTEE OF S. 900, THE GRAMM-LEACH-BLILEY FINANCIAL MODERNIZATION ACT. I DO NOT WANT THE FEDERALIZATION OF INSURANCE, BUT INSURANCE AGENTS IN STATES LIKE KENTUCKY, HAVE A DISADVANTAGE IN SELLING INSURANCE.

KENTUCKY HAS VERY LIBERAL STATE INSURANCE LAWS, AND WE ALLOW COMPETITION. AGENTS FROM OTHER STATES CAN SELL INSURANCE IN KENTUCKY. WE WELCOME IT.

UNFORTUNATELY, NOT EVERY STATE IS AS ENLIGHTENED AS KENTUCKY WHEN IT COMES TO STATE INSURANCE LAWS. KENTUCKY AGENTS CANNOT SELL IN MANY STATES WHOSE AGENTS SELL IN KENTUCKY. THEIR PROTECTIONIST LAWS SHOULD COME DOWN.

IT IS MY HOPE THAT A MAJORITY OF STATES AND TERRITORIES WILL ESTABLISH EITHER RECIPROCITY OR UNIFORMITY IN THEIR LICENSING REQUIREMENTS AND A NARAB SOLUTION WILL NOT BE NEEDED.

I AM PLEASED THAT YOU HAVE COME HERE TO HELP US ELIMINATE ANY BARRIERS THAT WE CAN IN ORDER TO ENABLE STATES TO PASS UNIFORMITY OR RECIPROCITY LAWS.

I ALSO HOPE YOU ENLIGHTEN US ON ANY OTHER PROBLEMS THAT HAVE POPPED UP SINCE WE PASSED GRAMM-LEACH-BLILEY AND ANY RECOMMENDATIONS YOU MAY HAVE.

I LOOK FORWARD TO HEARING FROM ALL OF OUR WITNESSES AND I THANK YOU AGAIN FOR COMING BEFORE US TODAY.

THANK YOU MR. CHAIRMAN.