Congress is set to OK the establishment of multi-state licensing for financial professionals licensed to sell insurance.

Legislation agreed upon by the leadership of both houses to extend the terrorism risk insurance program also creates the National Association of Registered Agents and Brokers (Narab) to cut the paper work for advisors who want to sell insurance in more than one state.

Insured Retirement Institute research shows that more than 40 percent of investors are considering relocating to another state for retirement, and three in four baby boomers say they want to keep working with their financial planner if they relocate.

“Narab would ensure that these clients could continue to work with their financial professional and still have access to a full suite of lifetime income strategies,” said Lee Covington, general counsel for the annuities trade group.

To become a member of Narab, an advisor would have to pay a membership fee (yet to be determined) and undergo a federal criminal background check.

While the law would take effect immediately with a presidential signature, it would probably be two years before Narab would be in a position to issue its first license, said Jill Hoffman, assistant vice president of federal relations for the National Association of Insurance and Financial Advisors.

She said Narab would probably be beneficial for advisors with clients in at least three states.