During the Fall Meeting of the National Association of Insurance Commissioners (NAIC), the Producer Licensing Working Group (PLWG) met to continue its review of limited-line licensing issues. The PLWG focus has been the following: 1) individually review the licensing requirements for each core limited line; 2) review other limited lines and determine what licensing requirements should apply to them; and 3) determine if another “catch all” limited line is needed to address licensing requirements for insurance products not already encompassed within the list of limited line.
At this meeting, the PLWG determined that surety should no longer be considered a limited line, but rather that surety bond producers should be required to obtain a casualty insurance license. According to a soon to be released survey by the NAIC, most state insurance departments already require surety bond producers to meet all the requirements for licensure under the major lines of business. Only a handful of states treat surety as a limited line in terms of lesser requirements for licensure. The PLWG is required to receive permission to release the survey results and when it does NASBP will make it available. Please keep in mind, however, that any recommendation put forth by the PLWG requires approval through the NAIC committee process and approval by the NAIC Plenary Session.