You are here:HomeIssuesBroker Disclosure of Compensation2010NY Supreme Court Rules State Can Mandate Compensation Disclosure

NY Supreme Court Rules State Can Mandate Compensation Disclosure

The New York State Supreme Court issued a ruling in favor of the New York State Insurance Department on the Article 78 lawsuit, upholding the...
November 30, 2010

The New York State Supreme Court issued a ruling in favor of the New York State Insurance Department on the Article 78 lawsuit, upholding the NYSID's authority to promulgate Regulation 194, which mandates compensation disclosure. The regulation is scheduled to go into effect on Jan. 1, 2011. The court ruled that the petitioners failed to show that the regulation is inconsistent with the relevant insurance law, or that the superintendent has exceeded his authority.

As non-petitioners in the lawsuit, PIA of New York has been able to focus its efforts on working with the NYSID to mitigate the impact of the regulation on producers. PIA remains committed to easing the burden of the regulation and providing tools that agencies can use to incorporate disclosure into their business workflows.

PIANY is continuing to work with the NYSID to seek clarity on issues not sufficiently addressed in a circular letter and is developing additional tools and resources to assist producers in complying with the regulation. This final circular letter attempts to clarify the compliance requirements of the regulation for producers and reflects many of the recommendations PIANY made during its negotiations with the NYSID to simplify the requirements the regulation imposes on agencies and producers and make compliance as easy as possible. PIANY is maintaining a resource center for its members regarding this issue.