Effective January 1, 2011, New York Regulation 194 — “Producer Compensation Transparency” — will require insurance agents to begin disclosing:
If the insured does request additional compensation information, agents are required to provide the requested compensation information in writing to the consumer within five business days.
This new regulation applies to all insurance contracts, defined as “an insurance policy, surety bond, contract of guarantee or annuity contract.”
Obviously, this only applies to sales in the state of New York. But it is useful for agents in other states to take note. We are in an environment where insurance oversight is increasing.