InsuranceJobs.com Shares News of the Senate Insurance Deregulation Bill
The new Senate Insurance Deregulation Bill proposed by Senators Jon Tester of Montana and Mike Johanns of Nebraska, will instate a new system that will allow any licensed insurance expert to sell insurance in any state. The current law mandates that insurance agents sell insurance policies only in the state in which they have a license. To practice in multiple states insurance professionals must obtain licenses for each state.
Many believe that this will increase competition amongst insurance professionals because insurance agents will no longer be able to corner any particular market or maintain competitive advantage in certain regions. With insurance agent jobs losing much of the restriction imposed by the previous law, the scope of business prospects for workers in the insurance industry could potentially greatly increases.
According to The Huffington Post, the great debate exists between insurance agents, who have been actively pushing for government to remove some of the red tape that complicates their work, and consumer groups who insist insurance agents cannot adequately serve multiple regions because of the varying insurance concerns of those regions.
Although the bill may potentially bring great opportunity for insurance professionals, some argue that spreading themselves across regions may diminish the quality of work produced. Another stance proposes that for the new licensing program to be effective, state laws should be abolished and replaced with a federal standard of laws for the insurance industry. Only time will tell how these changes sweeping the insurance industry will affect the work of insurance professionals.