Overview of the Financial Services Modernization Act (S. 900) also known as the Gramm-Leach-Bliley Act.
On November 12, 1999, President Clinton signed the Financial Services Modernization Act (S. 900) also known as the Gramm-Leach-Bliley Act. It repeals Depression-era prohibitions on the merger of banks and securities firms, and overturns the 1956 Bank Holding Company Act's separation of banking and insurance. This separation had already been rendered obsolete on insurance sales matters by the US Supreme Court decision in the Barnett Banks case.
The National Association of Insurance Commissioners (NAIC) held its Summer National Meeting in Philadelphia on June 7-11, 2002. Here's an update on the progress made by the states and the NAIC on its regulatory and modernization initiatives to comply with Gramm-Leach-Bliley Act:
44 states have adopted the NAIC Producer Licensing Model Act or other laws that satisfy the reciprocity licensing mandates of GLBA;
10 states have begun to process non-resident applications electronically through the National Insurance Producer Registry (NIPR);
All 50 states and DC are licensed to use the System for Electronic Rate and Form Filing (SERFF);
509 companies are licensed to use SERFF;
22 states have now joined the Coordinated Advertising Rate and Form Review Authority (CARFRA);
The NAIC is considering the use of an interstate compact for filing of new life, disability income, annuity and long-term care products;
All 50 states and DC have implemented rate and form filing checklists and review standards, which are linked to the NAIC Website to aid in communicating state regulatory requirements and reduce filing errors;
All jurisdictions have agreed to accept licensing applications according to the Uniform Certificate of Authority Application (UCAA) forms and guidelines;
49 states and DC have privacy protections in place that meet GLBA standards;
The Form A database which is designed to facilitate information sharing on merger and acquisition filings and increase regulatory efficiency has been launched;
The Consumer Information Source (CIS) which is designed to research companies’ complaint and financial data has been launched, and
45 states have signed regulatory cooperation agreements with the Office of Thrift Supervision, 33 states and DC with the Office of the Comptroller of the Currency; 40 states and DC have agreements with the Federal Deposit Insurance Corporation and 25 states plus DC have agreements with the Federal Reserve Board.
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