NU Online News Service, June 10, 4:00 p.m.EDT

A New York independent insurance agent's association dug in itsheels in opposing the state Insurance Department's new producerdisclosure regulation but is making further preparations to educateproducers about the rule when it takes effect Jan. 1.

In a statement, Richard A. Poppa, chief executive officer andpresident of the Independent Insurance Agents & Brokers of NewYork (IIABNY), reiterated the group's strong opposition to the newdisclosure regulation.

He said the group "has been steadfast in our position against"Insurance Regulation 194, which requires disclosure of compensationand other information regarding the agent's relationship withcarriers.

IIABNY said Mr. Poppa's remarks came during a continuingeducation video seminar on errors and omissions that is conductedat this time every year to about 700 producers throughout thestate.

On May 25, IIABNY and the Council of Insurance Brokers ofGreater New York took legal action to prevent the department from implementing theregulation.

"Our actions have followed our words," Mr. Poppa said. "Sure, wecould have done the easy thing and sat back and watched theregulation unfold, but we did what is in the best interest of ourmembers and what our members wanted us to do, which is to try andstop it."

In the meantime, Mr. Poppa told participants that while theassociation hopes to overturn the regulation, producers shouldprepare for its implementation. He said the association is planningtwo webinars and in-person meetings to educate producers about thenew regulation.

An association spokesman said IIABNY has scheduled twowebinars–one for July 14, and the other for August 12–and will alsohold half-day seminar sessions on the regulation probably in oraround major cities around the state.

The spokesman also said that no date has been set for hearingthe department's challenge to the regulation.

The Professional Insurance Agents of New York (PIANY)–whichopted not to join IIABNY's suit, deciding instead to continue discussions with the department–said it will offerstep-by-step guidance to its members on complying with theregulation.

"Over the course of the next few months, PIA will provideguidance to members, including NYSID-authorized language andmethods to efficiently incorporate the requirements of theregulation into their business' workflow," said PIANY ExecutiveDirector Diane Fowler.

PIANY said producers can provide input through the association'sAgent & Broker Compensation Disclosure website.

Both IIABNY and PIANY said they are awaiting clarification fromthe department regarding compliance language and proceduralissues.

A department spokesman said submitted compliance language fromagent groups is still under review. He said it is anticipated thatmore guidance on disclosure language that producers would giveclients would come out in July and a response to the individualsubmissions would be included then.