NU Online News Service, June 3, 3:05 p.m. EDT
New York State regulators have approved an agent association's disclosure statement that insurance agents and brokers can use to inform their clients about their compensation arrangements with carriers.
The New York State Insurance Department said it has given approval to the Professional Insurance Agents of New York's universal disclosure statement, saying that it complies with the first layer of disclosure, a department spokesman said.
Under Regulation 194, which takes effect Jan. 1, agents and brokers will have to disclose to their clients their role in the insurance transaction, how they will be compensated, and that additional information is available to the customer on compensation issues upon request.
The spokesman said by e-mail that its legal department reviewed the document and found that it complied with the intent of the regulation. The spokesman added that PIANY is the first and only agent association to make this request and receive approval.
In a statement, PIANY President Kevin M. Ryan said the association continues to object to the regulation, but is pleased with discussions it is having with the department on this issue. He said the PIANY-crafted disclosure language is the first part of the compliance guidance that it will be providing to members over the next few months.
PIANY said it plans to continue meeting in the coming months with the department to discuss related regulatory issues as they develop.
A copy of the disclosure statement is available at http://bit.ly/aqguYP.
The department said it is working with other groups besides PIANY on overall guidance for the industry on the more complex issues of disclosure as it moves forward. The exception is the Independent Insurance Agents & Brokers of New York, which is suing the department.
Regulation 194 has come under fire from agent and broker groups with two associations, the IIABNY and the Council of Insurance Brokers of Greater New York banning together to sue the department over the issue.
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