Minnesota Attorney General Mike Hatch has proposed a series of sweeping rules regulating how brokers would operate in the Land of 10,000 Lakes. Hatch, a Democrat, has found compatriots in the Minnesota legislature to propose legislation in the upcoming session that would require brokers to disclose the names of each company contacted for quotes and what the quotes were.
The legislation would also clarify as a matter of state law that insurance agents and brokers are legally bound to serve the best interests of the customer, not the carrier. A second bill would require insurers to give quotes to multiple producers on the same risk, if the client so chooses. Hatch said the proposed legislation would help curb the type of fraudulent activities uncovered by New York Attorney General Eliot Spitzer. Mark Kulda, a lobbyist with the Insurance Federation of Minnesota, told the Associated Press that having to redo a bid with different producers would increase the cost of doing business and increase prices.
Topics Agencies Legislation
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