Insurance and Real Estate Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-480

Title:

AN ACT CONCERNING LIFE INSURANCE PRODUCER LICENSES AND REGISTRATIONS OF BROKER-DEALERS, AGENTS, INVESTMENT ADVISERS AND INVESTMENT ADVISER AGENTS.

Vote Date:

3/20/2014

Vote Action:

Joint Favorable

PH Date:

3/18/2014

File No.:

SPONSORS OF BILL:

Insurance and Real Estate Committee

REASONS FOR BILL:

This bill would require the Banking Commissioner to provide a monthly list to the Insurance Commissioner of individuals registered pursuant of the general statutes and those individuals who have had such registration denied, suspended or revoked during the preceding ten years, and to require the Insurance Commissioner to take such denial, suspension or revocation into consideration with respect to application for and continuation of life insurance producer licenses.

RESPONSE FROM ADMINISTRATION/AGENCY:

State of Connecticut Insurance Department submitted testimony stating their appreciation for the intent of the bill but, they believe there is no need for the bill given what is already in statute. “The department already receives information pertaining to those that have had registrations denied, suspended or revoke from the Banking Department. The two Departments and our Commissioners share a strong, professional relationship. There is no need to codify in statute that the Department of Banking be required to provide the Insurance Department a monthly list. Currently, virtually all states have adopted the model act relating to the licensing of insurance producers in the same format, and departing from such format would create potentially substantial problems for our state. Any changes made to uniform provisions would cause Connecticut to become noncompliant and would have undesirable consequences, such as for example creating potential obstacles for domestic producers seeking to become licensed in other states.”

State of Connecticut Department of Banking testified echoing the Insurance Department's stance on this bill. “The Department of Banking agrees with the Insurance Department's suggested alternative approach, which appears to accomplish the core aim of Senate Bill 480 in a much more efficient way. As a matter of course, the Department of Banking already shares this pertinent information with the Insurance Department. Furthermore, the Department of Banking echoes the Insurance Department's testimony.”

NATURE AND SOURCES OF SUPPORT:

None expressed.

NATURE AND SOURCES OF OPPOSITION:

Warren Ruppar, President, Independent Insurance Agents of Connecticut submitted testimony stating, “Effective September 1, 2002 Connecticut joined the other states in enacting an NAIC Model Licensing Law. This legislation brought standards and reciprocity to producer licensing throughout the country. Raised bill 480 proposes to change the model act specifically in Sections 2-5 of the proposal. IIAC does not support changing the provisions included in the current statute. The current licensing laws for producers have proven to be effective and part of the national standard and therefore any changes should be opposed.”

Reported by: Ashlee Chatfield

Date: March 25, 2014