NU Online News Service, June 3, 3:05 p.m.EDT

New York State regulators have approved an agent association'sdisclosure statement that insurance agents and brokers can use toinform their clients about their compensation arrangements withcarriers.

The New York State Insurance Department said it has givenapproval to the Professional Insurance Agents of New York'suniversal disclosure statement, saying that it complies with thefirst layer of disclosure, a department spokesman said.

Under Regulation 194, which takes effect Jan. 1, agents andbrokers will have to disclose to their clients their role in theinsurance transaction, how they will be compensated, and thatadditional information is available to the customer on compensationissues upon request.

The spokesman said by e-mail that its legal department reviewedthe document and found that it complied with the intent of theregulation. The spokesman added that PIANY is the first and onlyagent association to make this request and receive approval.

In a statement, PIANY President Kevin M. Ryan said theassociation continues to object to the regulation, but is pleasedwith discussions it is having with the department on this issue. Hesaid the PIANY-crafted disclosure language is the first part of thecompliance guidance that it will be providing to members over thenext few months.

PIANY said it plans to continue meeting in the coming monthswith the department to discuss related regulatory issues as theydevelop.

A copy of the disclosure statement is available at http://bit.ly/aqguYP.

The department said it is working with other groups besidesPIANY on overall guidance for the industry on the more complexissues of disclosure as it moves forward. The exception is theIndependent Insurance Agents & Brokers of New York, which issuing the department.

Regulation 194 has come under fire from agent and broker groupswith two associations, the IIABNY and the Council of InsuranceBrokers of Greater New York banning together to sue the departmentover the issue.