IT LOOKS like one of those great old Duke Ellington compositions has become the theme song of regulators working on the Model Compensation Disclosure Amendment to the Producer Licensing Model Act. I'm referring, of course, to "I'm Beginning To See the Light."
In deliberations last month, both the National Conference of Insurance Legislators and the National Association of Insurance Commissioners increasingly seemed to realize that it makes no sense to apply the same disclosure regs to national brokers and to more typical producers. They also continued to hear from agents that placement service agreements are nothing like contingency contracts. In responding to the investigations into broker practices initiated by New York Attorney General Eliot Spitzer, regulators must acknowledge these differences among producers and contracts if they are to avoid doing an injustice to the vast majority of agents and brokers.
"A fundamental grasp of the complexities related to this issue seems, at last, to be beginning to take hold," is how Patricia A. Borowski, senior vice president of the National Association of Professional Insurance Agents, put it following an NAIC public hearing about proposed producer disclosure requirements.
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