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.
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.