Two agent groups in New York have filed a formal appeal of a trial court ruling that upheld a controversial state regulation requiring insurance producers to disclose their compensation.
The Independent Insurance Agents and Brokers of New York and the Council of Insurance Brokers of Greater New York submitted a brief with the New York State Supreme Court Appellate Division in Albany, on Sept. 1.
The dispute centers around New York Insurance Regulation 194, which took effect in January. It requires agents and brokers to tell clients how insurance companies pay them, whether the clients have asked or not.
The agents support voluntary disclosure of compensation by agents to customers, however they oppose mandated disclosures as “burdensome for producers and of little benefit to consumers.”
IIABNY and CIBGNY maintain that the insurance department does not have the power to make these demands. They have also described the regulation as “arbitrary” and said that it “imposes large, needless compliance costs on producers.”
A trial court upheld the regulation in November 2010.
IIABNY said that it expects the court will schedule oral arguments for sometime in the fall.
Topics New York Agencies Legislation Talent
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