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June 15, 2005 at 08:00 PM
The National Association of Insurance Commissioners has closed the door on further efforts to expand the reach of the broker compensation disclosure model amendment it approved in 2004.[@@]
The current model amendment to the NAIC producer licensing model law requires disclosure by brokers of fee arrangements only when brokers are compensated by both the insured and the insurer, or when brokers are said to “represent” the insured.
As a result of vote by the NAIC’s special Broker Compensation Committee, there will be no effort to expand the model to require disclosure by all producers, or even to ban certain kinds of compensation.
In the past few months ,17 bills have been introduced in 32 states on the issue, but so far only 4 states have passed bills, according to Joel Ario, chairman of the broker compensation committee, who is also the Oregon insurance administrator.
In addition, regulations on the issue are pending in states such as California and New York.
