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NAIC Ratifies Compensation Disclosure Amendment "As Is"

On Monday June 13 2005, at the NAIC meeting in Boston Massachusetts, the NAIC's Broker Activities Task Force voted to ratify the NAIC's Compensation Disclosure...
June 22, 2005

On Monday June 13 2005, at the NAIC meeting in Boston Massachusetts, the NAIC's Broker Activities Task Force voted to ratify the NAIC's Compensation Disclosure Amendment to the Producer Licensing Model Act (PLMA) as it was adopted in December of 2004. The Task Force stated that they believed the model "struck the right balance" at this time and that no further modifications to the language were needed. Individual state investigations into compensation practices would continue and the issue may be addressed at some point in the future if these investigations uncover more widespread wrongdoing.

What It Means to Agents:  PIA has fought since December to persuade the NAIC that any expansion of their already problematic model is unwarranted. The ratification of the model signals a victory for PIA as no further expansion will be forthcoming. As it stands, the battle will continue to be fought at the individual state level, where 32 bills have been introduced related to producer compensation disclosure in 17 states.