Do insurance agents and brokers have to tell their clients what their financial incentives are? In New York, as of Jan. 1, 2011, the answer is yes.
Insurance Regulation 194, "Producer Compensation Transparency," requires all New York-licensed producers to offer unrequested information about their compensation to their clients. If a client asks for more information, the producer must make a second highly detailed disclosure.
Lest you think this is a New York issue only, remember that it applies to anyone, resident or non-resident, that New York law requires to hold an agent, broker, or intermediary license. If you're a Tennessee agent with a New York non-resident's license, this regulation applies to you.
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