How Much Is It Costing You?

New Jersey is requiring all health insurance producers to to disclose, in writing, to purchasers just how much the producer is benefiting from the sale of a health insurance policy.

The rule becomes effective on and after January 5, 2009, and will enable health insurance buyers to evaluate the commission or other thing of value attached to a policy which an agent is advising the purchaser to buy.

Disclosure has to made no later than the effective date of the insurance policy, but a savvy buyer will ask for the info before signing for a policy. Although the insurance agent or broker has the responsibility of providing the disclosure, the New Jersey Banking and Insurance Department permits the carrier issuing the policy to provide the notice.

Although the types of health insurance covered by this requirement is broad, it does not apply to Workman's Compensation policies.