The Connecticut Senate has approved legislation (HB 6806), supported by the American Insurance Association (AIA), dealing with producer compensation issues. Some of the provisions in the legislation were instructive in developing the National Conference of Insurance Legislators’ (NCOIL) model bill.
“This legislation is a measured and reasonable response to issues raised by the ongoing broker compensation investigations,” said Laura Kersey, AIA assistant vice president, northeast region. “The bill provides appropriate disclosure for policyholders, but also allows business flexibility to encourage a healthy market.”
AIA has identified several key governing principles that any new legal standards must take into account, and HB 6806 embodies these principles: regulatory clarity; compensation transparency; jurisdictional consistency; and business flexibility.
The legislation was passed earlier by the House, and will now be sent to Gov. Jodi Rell (R) for her signature.
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