Resident and nonresident agents licensed to do business in New York must begin disclosing to clients information about the compensation they receive from carriers. Regulation 194 is slated to take effect on January 1, 2011.
“Insurance producers all over the country have New York licenses,” says Lane S. Rubin, chairman of the Independent Insurance Agents & Brokers of New York. “They may have heard about the new requirements and incorrectly believed it’s a New York matter only. They don’t realize they also will have to comply with these rules if they write business in New York.”