California has enacted a law that will allow it to move promptly to bar a life insurance agent from selling variable products if the agent is no longer registered with federal regulatory authorities.
The law also clarifies that annuity training requirements must be complied with prior to license renewal.
The provision is amongst several changes in California insurance laws aimed at tightening and streamlining insurance industry oversight.
The changes are contained in A.B. 1416. The bill was signed into law by Gov. Jerry Brown Oct. 2; it passed the legislature with strong support Sept. 6.
One change for both the life and property and casualty industries is reciprocity for insurance companies licensed in other states or nations.
It does so by removing the need for state regulators to review the articles of incorporation for licensees that are incorporated in other states or nations.
However, the provision does not reflect a change in policy for reciprocal licensing of individual agents and brokers in California, as proposed in the National Association of Agents and Brokers Reform Act.
That bill was reintroduced in March by Rep. Randy Neugebauer, R-Tex., and Rep. David Scott, D-Ga.
Both life and property and casualty insurance agents support such legislation, which would create standardization of agent licensing. The issue has been around for more than 10 years.