U.S. life insurance agents are busy reviewing a new producer compensation proposal.[@@]
The National Association of Insurance Commissioners, Kansas City, Mo., released a new producer comp model draft Thursday. The latest draft mandates disclosure of compensation received for making the sale only if the producer is compensated by the policyholder,
“As of now, we’re encouraged, but there is some work to be done,” says Jim Edwards, a staff official at the National Association of Insurance and Financial Advisers, Falls Church, Va.
Officials of the American Council of Life Insurers, Washington, were not available for comment at press time.
The draft would amend the Producer Licensing Model Act.
The NAIC Executive Task Force still has to approve the draft, and all NAIC commissioners may vote on it Dec. 29.
A subsection added to earlier drafts says the new draft language will apply only in cases in which a producer receives compensation from both the policyholder and the underwriter.