California Eases Broker Fee Rule: Industry Group
By Steve Tuckey
NU Online News Service, March 10, 12:55 p.m. EST?Based on an official briefing, California's proposed agent/broker fee disclosure rule is not as all-encompassing as the insurance industry feared, according to an insurance trade group leader.[@@]
Dan Dunmoyer, president of the Personal Insurance Federation of California, in a memo to the industry, said that at a recent meeting of the Agents and Brokers Advisory Committee, California Department of Insurance officials had moderated a proposed broker fee regulation that had the insurance industry concerned for its breadth and scope.
Mr. Dunmoyer reported Joe Tomashoff, senior staff counsel for the CDI, told meeting participants that the regulation will focus for the most part on disclosure.
In addition, he related, the audience learned that the proposed requirement that brokers find "the best available insurer" has been scrapped. There was also discussion of imposing the fiduciary requirement, which is opposed by the insurance industry, and is now no longer part of the law.
Mr. Tomashoff, according to Mr. Dunmoyer, confirmed that the regulation would not impact so-called "captive agents" other than imposing a requirement that they state up front they represent the insurer.
But the proposed California regulation still goes beyond the models approved by both the National Association of Insurance Commissioners and the National Conference of Insurance Legislators in that they apply to virtually all producers, rather than only those who receive compensation from both the insured and the insurer, Mr. Dunmoyer said.
CDI officials did not return calls for comment on the meeting.
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