Since 2004, when a joint investigation by New York insurance regulators and then-New York Attorney General Eliot Spitzer leveled bid-rigging allegations against brokerages that resulted in prohibitions on contingent commissions, work has been ongoing to create a broker disclosure compensation rule.
That long-anticipated rule was published today by the
The disclosure rule has been more of a looming reality since 2008, when regulators held joint hearings with the New York attorney general’s office. The rule was published in the New York State Register in early December, and interested parties were given until Jan. 16 to comment.
In a statement, New York State Insurance Superintendent James Wrynn said that the new regulation is designed to provide transparency by requiring agents and brokers to describe to consumers their role in a business transaction and how they are compensated.
The
In an apparent compromise, IIABNY called for producers to voluntarily disclose the existence and nature of their compensation as part of their larger client communications. The group told Insurance Networking News