Industry Groups Urge States To Temporarily Ease Licensing Requirements
Leaders of four insurance industry organizations have sent letters to every state insurance licensing authority requesting temporary licensing accommodations for producers who cannot complete regular licensing requirements because of the COVID-19 outbreak.
The letters were sent by leaders of the National Association of Insurance and Financial Advisors, AALU/GAMA and the National Association of Independent Life Brokerage Agencies.
Due to the public health crisis, many third-party testing centers have closed, and it is impossible for licensees to appear in person to be fingerprinted in many jurisdictions. The letter notes that demand for life insurance among members of the public has increased, but many would-be producers are unavailable to serve consumers because of the licensing backlog.
Some states have taken action to provide temporary licenses prior to applicants completing testing and fingerprinting requirements. Most states give insurance regulators the authority to waive licensing requirements when it is in the public interest to do so.
Louisiana is one state that has enacted an emergency temporary licensing regulation, and the letter provides that regulation as an example other states might follow.