NU Online News Service, May 5, 12:50 p.m. EDT

The Professional Insurance Agents of New York State Inc. said it has put up a Web page explaining the state's controversial producer disclosure regulation due to go into effect next year.

PIANY is negotiating with the New York State Insurance Department over difficulties its sees with the regulation.

At the same time, the Independent Insurance Agents and Brokers of New York and The Council of Insurance Brokers of Greater New York have said they will challenge the new rule in court because it is overly burdensome.

PIANY said it has brought back its Agent & Broker Compensation Disclosure pages on its Web site, www.pia.org/comm/abcd.

The page information offers "a one-stop location for producers to obtain answers and provide input on New York State's producer disclosure regulation," said PIANY.

Its site includes questions and answers about the regulation, "as well as videos explaining its status and PIANY's continuing efforts to mitigate the burden it will put on agents, the organization said.

"It will soon include tools for agents such as New York State Insurance Department-approved disclosure boilerplates and other suggestions as PIA continues the industry's efforts to mitigate the problems the regulation presents for independent agents and their clients," PIANY added.

The most recent addition to the site, PIANY said, is the second video in a series that discusses "questions and misconceptions about the regulation." It promised that new videos will be posted frequently.

"Producers in New York and surrounding states are concerned about Reg. 194. If this regulation takes effect next January, we want to make sure they're prepared and that compliance is as easy as possible," said Kevin M. Ryan, PIANY president.

"PIA developed the ABCD Web site to communicate with the producer community as we clarify implementation issues with the NYSID. We encourage all agents and brokers to send us questions and concerns as we scrutinize and grapple with the regulation's details and make the case for producers as NYSID drafts its circular letter," Mr. Ryan said.

PIANY said it "will continue to participate in regular discussions with the NYSID about the regulation until it goes into effect Jan. 1, 2011″ and that questions or concerns about the regulation may be directed to PIA at (800) 424-4244, or online at govaffairs@pia.org.

Under the new department regulations, producers will be required to describe to consumers their role in the transaction and how they get paid. If the client requests it, the agent or broker will have to provide a more detailed statement about compensation. (Go to http://bit.ly/c5Lt9x for more details.)

The regulation was published after extensive hearings. Regulators began developing it after a 2005 New York Attorney General's Office investigation revealed that some commercial insurance brokers took hidden payments to steer clients to insurers involved in a bid-rigging scheme.

On the PIANY Web page the organization offers answers to questions such as:

o What exactly will I need to do under this regulation?

o How long is the first disclosure required to be?

o Do I need to present the disclosure in writing?

o How much information will I be required to disclose?

o Do I need to disclose the compensation I would receive from every alternative I consider?

o Are "direct writers" exempted?

Special Reports /

PIANY Puts Up Web Page To Update, Explain Disclosure Rule

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