The Risk and Insurance Management Society Inc. (RIMS) says pay-disclosure rules created by the New York Insurance Department are insufficient to protect consumers and urged the department to reopen a period of public comment on the proposal.
The new rules would require agents to reveal to clients how much they are paid, but still permit contingent commissions, a move RIMS says “could give rise to the same conflict-of-interest concerns that the proposed rule was meant to address.”
“Consumer organizations have not had the opportunity to digest these additional changes and comment upon them,” Scott Clark, director of RIMS External Affairs Committee and risk and benefits officer for Miami-Dade County Public Schools, said in a statement. “The intent of the rule, as it was initially presented, was to bring greater clarity and certainty to the insurance purchase transaction in order to protect consumers. While this objective was a positive first step by the Department; each subsequent revision has diluted the original intent and has resulted in the final rule that falls short of complete and mandatory disclosure, for which RIMS has been a long-time advocate.”
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