The National Association of Insurance Commissioners (NAIC) in November drafted amendments to the Producer Licensing Model Act. One area addressed is broker compensation.Specifically, the Kansas City, Mo.-based NAIC is proposing that insurance producers-and any business entity related to them-legally permitted to receive compensation from an insured can not receive compensation from an insurer unless the producer has: obtained the insured's written consent; and disclosed the amount of the compensation from the insurer-including commissions-and the method of calculating it.
In addition, all producers must disclose the following information, if applicable, to a client before a purchase:
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