Alliance Opposes Legislation Resurrecting CDI Proposed Agent-Broker Fiduciary Regulations

April 1, 2005

Reacting to recent amendments made to SB 938 (Dunn) at the behest of Insurance Commissioner John Garamendi, the American Agents Alliance has announced that its fight over imposition of unfair regulations for which compliance would be impossible will extend to the State Capitol. The bill was recently changed to incorporate proposals concerning agent-broker fiduciary duties, something that has been fiercely opposed by a coalition of insurance trade associations, including the Alliance.

“Although the Commissioner found that he could not impose these ridiculous and unworkable mandates through the regulatory process, he is now attempting to gain that authority through legislation. He will find that our resolve to defeat his proposal is even stronger,” said Alliance President David G. Nielson, CIC. “After failing to provide one scintilla of evidence that a change is necessary, it was apparent that the Commissioner was merely chasing a phantom problem for reasons that have yet to be made clear.”

Nielson added: “The Alliance fully intends to battle this legislation every step of the way to insure that California’s producers do not have to endure more foolhardy roadblocks in providing consumers fair access to affordable insurance coverage, meeting the needs and expressed desires of their clients.”

For a full accounting of the battle over proposed agent-broker fiduciary duty regulations, as well as future updates on the new legislative battle, visit the Alliance’s Web site at www.agentsalliance.com.

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