|By Tim Loh, The Stamford Advocate, Conn.|
The bill, passed earlier this month, would require the state banking commissioner to provide monthly reports to the state insurance commissioner listing the names of securities brokers whose licenses have been denied, suspended or revoked over the last 10 years.
The insurance commissioner could then suspend, revoke or decline to renew existing insurance licenses of those who appear on the list. Additionally, the insurance commissioner could deny a license to an applicant whose name is on the list.
While there are no documented cases of such abuse in
Casting a wider net
"I could certainly see a loophole where somebody who is not trustworthy, has breached fiduciary duties in the securities area, could now get a comparable license, get that indicia of '
Such consumers, Kelly added, might think: "OK, you've got the license to do this, the state has some semblance of regulation over this, so you must be trustworthy, you passed some tests, you've got that '
Kelly decided to pursue the bill after reading a
The story recounted one instance in which an
In March, at a public hearing in
Later, Leonardi asked that the bill be widened to target not just potentially unscrupulous life-insurance salespeople, Kelly said, but also producers of auto, home and other types of insurance.
McLachlan, Frantz as co-sponsors
"All around, the department likes the bill in its current form," said
In 2013, the
The bill now requires Gov.
"It just seemed like a no-brainer, like of course we should fix this loophole," McLachlan said.
"Insurance and banking are so closely related now, especially if you take into account life insurance, and other forms of insurance," Frantz said. "Essentially it's a financial services product, which makes it a banking thing, but it's also insurance. It's a hybrid, so the logic is there. You want to coordinate between those two agencies."
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|Source:||McClatchy-Tribune Information Services|