Countersignature Law

Countersignature Law

In the United States, a law requiring an insurance policy to be signed by an insurance agent who is licensed to practice in the state where the policy is issued. Countersignature laws are not federal, but rather exist at the level of individual states.
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It covers such topics as: the need for a license to transact insurance; countersignature law requirements; Internet advertising requirements; restrictions on giving online advice; statutes and regulations dealing with payment of referral fees; collection of premiums; state- specific privacy laws; and, fair claims practices requirments.
WASHINGTON -- A federal district court judge in South Dakota ruled Tuesday that the state's countersignature law is unconstitutional, giving The Council of Insurance Agents & Brokers another victory in its efforts to eliminate all statutes that bar out-of-state insurance brokers from conducting business without the involvement of a resident agent.
These countersignature laws are stubborn vestiges of protectionism that have no place in the 21st Century," said Ken A.
The end of the Florida countersignature law, which was fiercely protected for decades by a group of Florida agents, represents both a symbolic and real leap forward in this effort to promote competition and root out inefficiencies in the insurance regulatory system.
The suit argues that the Commonwealth's countersignature law violates the Privilege and Immunities Clause of the U.
These countersignature laws are the last vestiges of a bygone era of protectionism, and it is time to wipe them out.
The ruling is a victory for The Council of Insurance Agents & Brokers, which has gone to federal court in six states and jurisdictions where countersignature laws remain on the books, arguing those statutes are unconstitutional.
He noted Nevada, South Dakota and West Virginia had similar countersignature laws.
At the request of the committee Harter specifically addressed, during his oral presentation, some of the key competitive challenges faced by multi-state insurance producer operations, to include countersignature laws.
They include the refusal of certain states to recognize risk retention group coverage as evidence of financial responsibility with regard to certain liability coverages; the policy of some states to impose a surplus lines tax on risk retention groups rather than taxing them as admitted insurers (the current requirement results generally in a higher tax rate); the practice of some non-chartering states to charge high filing fees; and the need to clarify countersignature laws.
Likewise, she points to other barriers to entry for nonresident producers, key among them countersignature laws that several states, most notably Florida, continue to carry on their books.
Specifically, he pointed out that while only a few jurisdictions still have countersignature laws, less progress has been made on what he termed the "secondary level" of statutes that act in concert with countersignature laws.