Further changes in producer compensation rules beyond those adopted in recent months by state regulators–including an end to contingency commissions–appear unlikely.
In remarks echoed by industry officials, North Dakota Insurance Commissioner Jim Poolman said, “I don’t believe this issue has shelf life,” adding later, “the issue will fade away.”
William Anderson, vice president and associate general counsel of the National Association of Insurance and Financial Advisors, gave the same assessment.
Their comments were made during a panel discussion at the annual conference of the American Council of Life Insurers here.
While the issues discussed by the panel dealt with the life and health industry, the discussion about producer compensation was also relevant to the property-casualty industry because Poolman is chairman of the Producer Licensing Working Group of the National Association of Insurance Commissioners.