A California-based agents' group expressed concern that an expected series of enforcement actions by the California Department of Insurance over disclosure issues could be another attempt to impose burdensome duties on agents and brokers.

In the wake of misconduct uncovered by New York Attorney General Eliot Spitzer, California Insurance Commissioner John Garamendi has sought to impose greater requirements for agents and brokers to disclose the exact nature of fees and commissions they will receive from consumers, and insurers if applicable.

Michael D'Arelli, vice president, legislative and regulatory affairs for the Western Insurance Agents Association, said although the group is not opposed to the department taking enforcement actions against agents and brokers engaged in disclosure misconduct, Mr. Garamendi's efforts to impose new disclosure requirements are overkill.

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