NU Online News Service, May 23, 2:58 p.m. EDT
The Independent Insurance Agents & Brokers of New York (IIABNY) reports it will file its appeal of a court decision upholding Regulation 194 in the next several weeks.
The group says it expects to file the appeal with the State Supreme Court's Appellate Division, Third Department.
Regulation 194, which took effect on Jan. 1, requires agents and brokers to disclose compensation from insurers, whether the clients have asked for the information or not. Should a client have questions about the producer's compensation, the producer must provide additional information including details about the policy sold and policies the client rejected.
IIABNY and the Council of Insurance Brokers of Greater New York challenged the regulation in court, but the New York State Supreme Court in Albany County rejected their arguments in November 2010.
The next month, the agent groups said they would appeal the decision.
Speaking on the weekly Internet-based audio program IIABNY Live!, IIABNY President and CEO Richard A. Poppa says, "Regulation 194 is a costly and unnecessary burden on law-abiding insurance agents and brokers. We are going to appeal the ruling because our members expect us to and because it is the right thing to do."
IIABNY Board Chairman Christopher A. Brassard notes, "IIABNY is continuing the fight against this unfair regulation. Our members deserve no less."
He adds, "While we agree that consumers who want information about a producer's compensation should get it, we oppose this one-size-fits-all regulation that has added unnecessary paperwork and effort to producers' obligations. We support a system in which producers can have appropriate discussions with their customers as needed."
The IIABNY board has instructed the law firm of Keidel, Weldon & Cunningham, LLP to finish preparing the filing. The firm expects to have the filing ready by late June or early July.
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