Connecticut Attorney General Richard Blumenthal repeated his call for state insurance regulators to establish a code of professional responsibility for agents and brokers in a letter to the National Association of Insurance Commissioners. The NAIC has drafted model regulations for states that would require brokers to obtain from customers written consent for compensation, including commissions. Brokers would have to disclose the amount of compensation paid by the insurer. Insurance commissioners hope to submit a final recommendation to state legislatures in early 2005. Blumenthal said he opposes federal regulation of the industry, especially including any attempt to pre-empt state action. “I believe as you do that continued state regulation is our best hope for consumer protection and effective law enforcement,” he told the NAIC. He also proposed requiring brokers who are paid solely by insurers to disclose details of their compensation and demanding that brokers and agents put in writing why an insurer is being recommended and the nature of compensation.
Topics Agencies Legislation
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