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NY DOI to Meet Again This Week With PIA of New York On Disclosure Draft

The New York State Insurance Department (NYSID) sent PIA of New York an advance copy of its draft Circular Letter defining the implementation and compliance...
August 24, 2010

The New York State Insurance Department (NYSID) sent PIA of New York an advance copy of its draft Circular Letter defining the implementation and compliance rules of Regulation 194, the state's disclosure regulation scheduled to go into effect January 1, 2011. The draft Circular was shared with PIANY as a follow up to ongoing discussions with NYSID officials to ensure that implementation of the regulation would be as noninvasive and simple as possible.

"We are pleased to see that NYSID has accepted many of the recommendations we made to them during our discussions this spring, and that it addressed many of the concerns we had with clarifying the vague verbiage of the regulation," said PIANY President Kevin Ryan, CIC, CPIA, who added that PIA plans to meet with the department again on Thursday August 26 to address additional issues of concern. Since Reg. 194 was promulgated in February, PIANY has met numerous times with the Department, continuing the association's push against the potentially burdensome and confusing provisions of the regulation. Earlier this summer, PIA-drafted primary disclosure languagereceived formal approval from the NYSID and the association created a step-by-step compliance overview for agency owners to explain when disclosure is required by the regulation-and when it's not necessary.

Earlier this year, the Independent Insurance Agents and Brokers of New York and the Council of Insurance Brokers of Greater New York jointly filed a lawsuit to prevent the New York Insurance Department from implementing a proposed producer compensation disclosure law. PIA of New York made a strategic decision not to join in the suit, but rather to continue ongoing discussions with the department to make the new disclosure regulation less onerous for independent agents if it is ultimately adopted.

PIANY Special Update (8/17/10)

NYSID Provides Producer Comp. Guidance, But Not To Groups In Lawsuit (National Underwriter 8/17/10) (PIA quotes)