The Independent Insurance Agents & Brokers of America announced that it supports the stated goals and objectives of the National Association of Insurance Commissioners’ (NAIC) compensation disclosure amendment, and hopes for the emergence of a focused proposal that targets only the types of transactions in which wrongdoing has been alleged.
The association supports mandatory disclosure by brokers of meaningful information concerning the sources and nature of their compensation, including contingent compensation agreements, and it remains heavily involved in the ongoing negotiations over the draft amendment to the NAIC’s Producer Licensing Model Act. The latest draft of the NAIC’s proposal was released on Dec. 5, and IIABA filed comments on that proposal today.
“This is a complex issue, and we certainly need to proceed with precision and deliberation. No one wants to deal with unintended consequences later,” said Big “I” CEO Robert A. Rusbuldt. “The final reform proposal must be real and meaningful for consumers without creating new and burdensome requirements for main street businesses that do not provide value for customers. We hope to find a happy medium in which consumers have the information they need in order to find the best product and value they deserve, yet without creating needless and costly impediments to doing business.”
The Big “I” National Board of State Directors adopted a formal policy position calling for broker disclosure prior to New York Attorney General Eliot Spitzer filing suit against Marsh & McLennan Cos. and Marsh Inc. for alleged bid rigging.
“Our national board proactively took action urging brokers to disclose to clients the existence of incentive compensation agreements, and we are glad to see that there is growing agreement in the industry as to the wisdom of this course,” said Wesley Bissett, Big “I” senior vice president of state relations and government affairs. “The stated goals and objectives of the model law are admirable, but additional revisions are necessary in order to ensure that the concepts within it translate into true value for consumers.”
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