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N.Y. Changes Comp Draft

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The New York State Insurance Department has posted a rewrite of a proposed producer compensation transparency regulation.

The department is accepting comments on the new draft until July 29.

A copy of the new draft is available here.

A copy of an earlier draft, released in January, is available here.

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The earlier draft included payment of “employee salaries, benefits or expenses” in the definition of producer “compensation.” The new draft excludes that provision.

The new draft also excludes a model compensation notice.

The new draft replaces the model notice with a longer description of what producers should tell potential clients “prior to the binding of any insurance contract.”

The new draft would exempt renewals and “the sale of insurance by a person who is not required to be licensed as an insurance producer” from the proposed comp disclosure requirements.