California Insurance Commissioner John Garamendi said on Wednesday that he will delay developing new regulations imposing fiduciary duties and disclosure obligations on agents and brokers in the wake of guidelines unveiled by the Insurance Brokers and Agents of the West.
"We have been working with IBA West and others in the insurance industry to encourage changes in the practices of agents and brokers that will prevent steering and bid-rigging," Mr. Garamendi said. "We have also stressed the obligation that all insurance professionals have to fully disclose any manner in which their compensation might influence the recommendations they provide to their customers."
The issue has been contested between the insurance industry and the state since Mr. Garamendi announced a proposed set of regulations imposing fiduciary duties on agents and brokers last November. That proposal, and a similar revised version offered earlier this year, was defeated largely due to efforts by IBA West and others agent and insurer groups.
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