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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