Two Rhode Island State Senators, William A. Walaska, D-Warwick, and David E. Bates, R- Barrington, Bristol, who is an insurance agent, have introduced legislation that they believe will add to consumer confidence in insurance firms. The bill, (2005 – S1015) sets rule for compensation disclosure where any insurance producer or any affiliate of such a producer receives any compensation from a customer for the initial placement of insurance.
“This is about consumer protection through full and detailed disclosure of insurer income and the sources of that income,” said Senators Walaska and Bates. “Rhode Island should never see the kind of illegal activity that was uncovered in New York earlier this year because we already have a law prohibiting insurance brokers from collecting fees and commissions from both clients and companies. Nonetheless, more information is always better than none or too little, and this bill will provide another level of openness for all insurance customers in our state.”
The bill is based on model legislation drafted by the National Association of Insurance Commissioners. Co-sponsors of the bill include Senate Majority Leader M. Teresa Paiva Weed D-Jamestown, Newport. and Sen. Joseph M. Polisena, D-Johnston.
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