The next major development in IIABNY’s legal effort to overturn a New York regulation mandating producer compensation disclosure will occur Jan. 10, 2012, reports the Independent Insurance Agents and Brokers of New York.
Attorneys representing the association and Council of Insurance Brokers of Greater New York are preparing to meet with lawyers for the State Attorney General’s Office before a panel of judges at the New York State Supreme Court Appellate Division, Third Department in Albany. The lawyers plan to argue the merits of the IIABNY-CIGBNY appeal, which seeks to overturn a lower court ruling and prevent state regulators from enforcing Regulation 194.
Regulation 194, which went into effect on Jan. 1, 2011 requires agents and brokers to disclose to clients how they are paid by insurance companies, regardless of being asked. Should a client have questions about the producer’s compensation, the producer must provide, in addition to that information, other details about the policy sold as well as any policies the client rejected.
In 2010, a state trial court justice upheld the regulation, rejecting IIABNY and CIGBNY’s contention that state regulators lack the legal authority to enforce its burdensome provisions. Last September, IIABNY attorneys filed a brief with State Supreme Court Appellate Division appealing the judge’s decision, reports IIABNY.
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