NAIC Advances Resolution Opposing Limited Term Licenses

Birnbaum said the discussion creates a good opportunity for regulators to take an in-depth look at meeting the needs of the underserved market. But there is no reason to conclude that increasing the number of agents would increase the availability of insurance to the underserved market, Birnbaum said.

Here are some comments made about the proposal at the "D" Committee meeting and a limited term license hearing:

- Bill Anderson, a representative for NAIFA, said putting agents in the market who don't understand life insurance is not a benefit to a consumer. That also would complicate the producer licensing system, he said.

- Rep. Shirley Bowler, a state lawmaker from Louisiana who supports the concept of limited term licenses, said at the hearing that states should provide incubators for new ideas that can help meet consumer needs. If Congress does not believe the insurance market is serving a broad segment of the public, it might raise revenue in the future by getting rid of life insurance tax benefits, Bowler said.

- Peter Schneider, executive vice president of Primerica, talked about a man who took a construction job in Iraq to help make ends meet and was killed. His family received a $400,000 check, according to Schneider. A limited term license would put agents in the market to help other families that might need death benefits in the event that the breadwinners were killed, Schneider said.

- Michael White of Michael White Associates, Radnor, Pa., a Primerica consultant, said his firm found that only 33% of all persons owned agent-sold life insurance, down from 56% in 1960 and 43% in 1984.

- Michael Lovendusky, a representative for the American Council of Life Insurers, Washington, said an ACLI committee is looking at the underserved market issue.