Changes to a proposed New York producer compensation disclosure regulation have improved the rule in part, according to PIA.

The newly-released proposed regulation would require producers to inform clients of the details of their compensation upon the client’s request. Under the rules, producers will inform clients of their right to ask for the information and keep records of refusal or disclosure for up to three years. The New York DOI announced has sent it to the Governor's Office of Regulatory Reform for review.

“PIA National is working closely with PIA of New York, which is taking the lead in addressing the New York State Insurance Department’s new draft producer compensation transparency regulation,” said PIA National President Kenneth R. Auerbach, Esq. “From the outset, PIA has held that additional regulation about compensation disclosure in New York State is unnecessary.”

Auerbach said that the latest draft of the proposed regulation, which has yet to be finalized, is better than what was first proposed. “PIA is pleased that the disclosure requirements are similar to what agents currently provide to their clients,” he said. “This is an ongoing, constructive process and PIA will continue to meet with policymakers to protect agents from overly burdensome requirements. Nationally, we expect little or nothing to change beyond New York, as other states appropriately engage in their own regulatory oversight and because we see a trend of recognizing the legality of producer commission structures.”

NY Compensation Disclosure Rule Advances (National Underwriter 9/11)

September 15, 2009