NU Online News Service, July 12, 3:52 p.m.EDT

New York agent associations are taking steps to inform theirmembers about the state Insurance Department's new regulation onproducer compensation disclosure, developing online programs andoverviews in anticipation of the new rule.

The Professional Insurance Agents of New York said it hasdeveloped a step-by-step Compliance Overview for Agency Owners toreduce confusion and help producers understand the requirements ofthe regulation.

The Independent Insurance Agents & Brokers of New York(IIABNY), meanwhile, said it will present an online continuingeducation (CE) program this week to provide information on theregulation.

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

However, Richard A. Poppa, chief executive officer and presidentof IIABNY said that "it is extremely important that agents preparethemselves for its possible implementation if the courts do notmake a final decision before the Jan. 1, 2011 effective date."

IIABNY's web CE program, "Producer CompensationDisclosure–Regulation 194," is part of the association's continuedefforts to simultaneously oppose and prepare for Regulation 194, which requires disclosure of compensation andother information regarding the agent's relationship withcarriers.

IIABNY said that the web CE program–set to run on July 14 andAugust 12–will provide information on the historical background ofevents leading to the regulation and will address specificrequirements for when and how a producer must disclose certaininformation.

The program will also go over producers' and insurancecompanies' responsibilities for records retention.

According to IIABNY, as of the end of last week, more than 200agents and brokers registered for the program. The insurancedepartment has approved the program for one continuing educationcredit for all licenses.

PIANY–which said it is continuing to work with the New York State InsuranceDepartment–has created a flowchart and an interactive online guideto help its members picture what they would need to do if theregulation goes into effect, according to PIANY President KevinRyan.

Mr. Ryan reiterated that PIA opposes mandatory disclosure but isdetermined to make sure the regulation is easy for producers tocomply with if it is implemented.

PIANY's online guide and flowchart are available under theResources section of the association's Agent & BrokerCompensation Disclosure website.

For more information and to register for one of IIABNY's classesvisit www.iiabny.org/advocacy andclick on the "Producer Comp Updates" graphic.