In June, the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., adopted changes to its Producer Licensing Model Act, which the states can review and consider adding to their existing regulations.Without forbidding producers from accepting incentives or contingency fees from insurers, the act now calls for those agents and brokers who receive any compensation from the customer for placing insurance--or who represent the customer--to add the following procedures before the customer purchases that insurance:

* Obtain the customer's documented acknowledgement that the agent or broker will receive compensation from the insurer or third party for selling the insurance.

* Disclose the amount of that compensation, or, if the amount isn't known, disclose the specific method used for calculating that compensation--and, if possible, a reasonable estimated amount.

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