The Council of Insurance Agents & Brokers (CIAB) on Thursday sent a letter to West Virginia Gov. Bob Wise urging him to sign legislation approved by the West Virginia House and Senate repealing that state’s counter-signature requirements for insurance brokers.
The West Virginia legislature last weekend gave final approval to the legislation repealing the counter-signature provisions, which had barred out-of-state insurance brokers from conducting business in their jurisdictions without the counter-signature of a resident agent.
The Council in February filed a federal lawsuit in West Virginia seeking to overturn those provisions. The suit argued that West Virginia’s counter-signature provisions violated the Privilege and Immunities Clause of the U.S. Constitution.
“Obviously, if Governor Wise signs the legislation and the counter-signature requirements are wiped off the books, we would have no need to pursue the lawsuit,” said Ken Crerar, president of The Council.
The West Virginia lawsuit, and similar suits that are pending in South Dakota and the U.S. Virgin Islands, followed The Council’s successful federal challenge last year of counter-signature requirements in Florida.
U.S. District Judge Robert Hinkle agreed with The Council that Florida’s law was unconstitutional and granted a summary judgment in the case on Sept. 30, 2003. CIAB also filed a similar suit against the state of Nevada and is awaiting a decision in that case.
In a letter to the governor, Crerar said the counter-signature provisions are “anachronistic” and have no place in the global marketplace.
“Counter-signature laws are stubborn vestiges of protectionism that add costs for consumers without adding value to the insurance product,” said Crerar.
Crerar praised the legislature for responding so quickly to The Council’s challenge and said that if the governor signs the law, it will be a “tremendous step forward” by the state and a strong statement in favor of eliminating inefficiencies in the current insurance regulatory system.
Topics USA Agencies Legislation Virginia West Virginia
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