The Independent Insurance Agents and Brokers of New York (IIABNY) and the Council of Insurance Brokers of Greater New York (CIBGNY) say they will team up to sue the state over new rules that will require agents to disclose their commissions to clients.
The two announced that they have directed their lawyers to move ahead on an Article 78 proceeding — essentially, challenging the New York Insurance Department in court over the agency’s legal right to create the rule.
“The Insurance Department’s insistence on forcing an overbearing and burdensome regulation on our members is more than troubling,” said CIBGNY president Anthony Aquilino. “Once our board decided recently to initiate an Article 78 proceeding, it was a logical next step to work with IIABNY and protect the interests of both our members.”
Added IIABNY Chairman Lane Rubin: “IIABNY never sought to pick a fight with the department over this issue. We spent countless hours working with state regulators to come up with a solution that would be acceptable to all parties. Unfortunately, that hasn’t happened yet, and we were forced to turn to the courts. Fortunately for agents and brokers in New York, we now have a willing and able partner in CIBGNY, who is standing with us against an unwarranted regulatory regime.”
The groups expect to file the suit in May.
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