New York State Insurance regulators are considering opening a window on the details of compensation agents and brokers receive from insurance companies. Contingency fees are included in the package under study.
The regulation would require agents and brokers to inform their clients in writing of the total compensation to the producer involved in an insurance transaction.
The broker or agent would have to inform the client if there were any incentive payments from insurers that might influence decisions on placing policies. If requested, producers would be required to provide a client with details of payments actually received for a policy the producer recommends.
The proposed regulation is in the early discussion stage with insurance industry groups and consumers. It is expected to be subjected to a formal comment period and to be adopted by the end of 2009.
The regulation is similar to one approved by insurance regulators in New Jersey late last year.
Monday, February 9, 2009
Subscribe to:
Post Comments (Atom)
0 comments:
Post a Comment