NU Online News Service, July 12, 3:52 p.m. EDT

New York agent associations are taking steps to inform their members about the state Insurance Department's new regulation on producer compensation disclosure, developing online programs and overviews in anticipation of the new rule.

The Professional Insurance Agents of New York said it has developed a step-by-step Compliance Overview for Agency Owners to reduce confusion and help producers understand the requirements of the regulation.

The Independent Insurance Agents & Brokers of New York (IIABNY), meanwhile, said it will present an online continuing education (CE) program this week to provide information on the regulation.

On May 25, IIABNY and the Council of Insurance Brokers of Greater New York took legal action to prevent the department from implementing the regulation.

However, Richard A. Poppa, chief executive officer and president of IIABNY said that "it is extremely important that agents prepare themselves for its possible implementation if the courts do not make a final decision before the Jan. 1, 2011 effective date."

IIABNY's web CE program, "Producer Compensation Disclosure–Regulation 194," is part of the association's continued efforts to simultaneously oppose and prepare for Regulation 194, which requires disclosure of compensation and other information regarding the agent's relationship with carriers.

IIABNY said that the web CE program–set to run on July 14 and August 12–will provide information on the historical background of events leading to the regulation and will address specific requirements for when and how a producer must disclose certain information.

The program will also go over producers' and insurance companies' responsibilities for records retention.

According to IIABNY, as of the end of last week, more than 200 agents and brokers registered for the program. The insurance department has approved the program for one continuing education credit for all licenses.

PIANY–which said it is continuing to work with the New York State Insurance Department–has created a flowchart and an interactive online guide to help its members picture what they would need to do if the regulation goes into effect, according to PIANY President Kevin Ryan.

Mr. Ryan reiterated that PIA opposes mandatory disclosure but is determined to make sure the regulation is easy for producers to comply with if it is implemented.

PIANY's online guide and flowchart are available under the Resources section of the association's Agent & Broker Compensation Disclosure website.

For more information and to register for one of IIABNY's classes visit www.iiabny.org/advocacy and click on the "Producer Comp Updates" graphic.

Special Reports /

N.Y. Agent Groups Prepare Members For Disclosure Rule

Related Stories

Recommended For You