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Producer Licensing Legislation Update

Governor Signs Bill

Contact: Reyn Norman, Associate Counsel

(334) 241-4119

5/30/2001

Governor Don Siegelman today thanked the parties interested in the Insurance Producer Licensing bill for working out the concerns raised in the final days of the legislative session. The comments came during a bill signing ceremony, which included representatives of insurance agents, insurers and the trial bar.

Insurance Commissioner David Parsons also thanked the Governor and his staff for the leadership exhibited in moving this bill through the legislative process. “This is really a significant step for Alabama,” said Commissioner Parsons.

The bill, sponsored by Senator George Clay (D-Tuskegee), passed the Senate on April 19 by a vote of 26-0 and received the unanimous approval of the House Banking & Insurance Committee on May 1. Representative Lesley Vance (D-Phenix City), Chairman of the committee, was the House sponsor of the legislation.

Concerns raised by the Alabama Trial Lawyers Association resulted in an agreed-upon amendment, which was offered in the House before final passage. The bill, as amended, passed the House by a vote of 100-0, and the Senate concurred in the House amendment by a vote of 30-0. The bill was signed by the Governor and filed with the Secretary of State on May 30, 2001, thus becoming Alabama Act No. 2001-702.

The legislation is designed to make Alabama’s law substantially similar to the Producer Licensing Model Act developed by the National Association of Insurance Commissioners, thus bringing Alabama law into compliance with federal reciprocity and uniformity requirements of the Gramm-Leach-Bliley Act. With the enactment of the Alabama law, twenty-seven states have passed legislation seeking to satisfy the reciprocity requirements of Gramm-Leach-Bliley.

The effective date for the licensing changes is January 1, 2002.


To view the legislation, please click the link indicated below:

Act No. 2001-702, Senate Bill 427

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