A new mandate requiring every retail broker in New York to disclose to their clients the value of all compensation deals with insurers is being drafted by the state insurance department, a regulator revealed here at a meeting of wholesalers.

The proposed “producer transparency rule” would “ban any New York broker from accepting any compensation from an insurer if not disclosed to the client beforehand,” said Steven Nachman, deputy superintendent for frauds and consumer services in the state insurance department.

“Our goal is to bring disclosure regulations in line with agreements in effect with Marsh, Aon and the other major retail brokerages,” he added during a speech here before the Professional Insurance Wholesalers Association of New York State.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.