On February 10, 2010, the New York State Insurance Department published Regulation 194—Producer Compensation Transparency—in the New York State Register. This regulation is scheduled to take effect January 1, 2011.
New Yorkers contemplating buying insurance will be able to find out how much agents and brokers are being paid and by whom, according to New York State Insurance Superintendent James J. Wrynn.
According to a news release issued by the New York State Insurance Department: “The proposed regulation would require that when a consumer applies for an insurance policy, the agent or broker must explain to the consumer:
“1. The agent or broker’s role in the transaction;
“2. Whether the agent or broker will receive compensation from the insurer based on the sale;
“3. That the compensation insurers pay to agents or brokers may vary depending on the volume of business done with that insurer or its profitability; and
“4. That the purchaser may obtain more information about the compensation the agent or broker expects to receive from the sale by requesting that information from an agent or broker.”
Regulation 194 defines compensation as “anything of value, including money, credits, loans, interest on premium, forgiveness of principal or interest, trips, prizes, or gifts, whether paid as commission or otherwise.” It continues, “Compensation does not mean tangible goods with the insurer name, logo or other advertisement and having an aggregate value of less than $100 per year per insurer.”
In addition, if the consumer asks for more information, an agent or broker must provide “a more detailed written disclosure of the compensation expected to be received as well as a description of any alternatives presented by the agent or broker and the compensation associated with those alternatives.”
If this is happening in New York, how many other state insurance commissioners are considering parallel actions?
Broker World would like to hear what you have to say about this situation. Please leave your comments at the end of this article.
The 60 Plus Association has announced a new advertising campaign featuring seniors who urge Congress to “Start Over and Get Health Care Right.” The advertising campaign will target 18 Democratic members of the U.S. House of Representatives.
The 60 Plus Association is a 17-year-old nonpartisan organization working for permanent estate tax repeal, saving Social Security, affordable prescription drugs, lowering energy costs and other issues featuring a less government, less taxes approach. 60 Plus calls on support from nearly 5.5 million citizen activists. 60 Plus publishes a magazine, Senior Voice, and a scorecard, bestowing awards on lawmakers of both parties who vote “pro-senior.” 60 Plus has been called “an increasingly influential senior citizen’s group” and, since 1992, “the conservative alternative to the AARP.”
This latest 60 Plus Association advertising campaign is a mix of district specific television, cable and radio ads, as well as phone calls to the list of representatives below. In total, 60 Plus is spending $500,000 on this advertising campaign. The North Dakota version of the television ad can be viewed on YouTube at www.youtube.com/60PlusAssociation#p/a/u/0/3Pw_Y13XWSE.)
Radio targets include Arcuri (D, NY-24), Carney (D, PA-10), Donnelly (D, IN-02), Driehaus (D, OH-01), Ellsworth (D, IN-08), Etheridge (D, NC-02), Mitchell (D, AZ-05), Perriello (D, VA-05), Shea-Porter (D, NH-01), Titus (D, NV-03), and Wilson (D, OH-06).
Television targets are Dahlkemper (D, PA-03), Hill (IN-08), Kilroy (D, OH-15), and Pomeroy (D, ND-AL).
Television and radio targets are Giffords (D, AZ-08), Kagen (D, WI-08), and Kirkpatrick (D, AZ-01).
For more information about the association go to www.60plus.org.
Paul J. Roman, owner and president of Brokerage Marketing Services Corporation, Inc., Perkiomenville, PA, died suddenly and unexpectedly on Sunday, January 31. He was 68. Roman, who was president of the National Brokerage Agencies, Inc., in 2004-2005, started his career with the Insurance Company of North America (INA) and was one of U.S. Life’s first group general agents. He founded Brokerage Marketing Services Corporation in the early 1970s and specialized in group and association insurance products.
Sam Corey, The Brokerage Resource, Inc., Durham, NC, said, “Paul and I had a close personal and business relationship for more than 35 years. Born and raised in the suburban Philadelphia area, Paul was an avid hunter and fisherman, and his time and contributions to the conservation of wildlife have been recognized throughout the many various organizations in which he was active. I’ll miss my ‘faithful gunbearer’.” [SAC]
