The Risk and Insurance Management Society commended the New York State Insurance Department for its proposed regulations governing producer compensation, but said it ultimately wants to see a ban on all contingent commissions.
The New York-based risk managers association issued a statement today saying, "While the proposal falls short of a flat-out prohibition of contingent fees for all insurance producers and maintains the two-tier system, RIMS views the regulation as a step forward in ensuring complete transparency in the process.
"Complete disclosure of compensation arrangements goes a long way toward promoting transparency and re-establishing trust between the broker and consumer, while also providing the consumer with sufficient information to evaluate potential conflicts of interest in the placement of insurance policies.
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