New York Department Answers Regulation 194 Questions

If a producer is selling group and blanket insurance policies, the producer must start by providing the mandatory initial disclosures to the group policyholder, such as an employer or association, officials say.

“However, the insurance producer also must provide the disclosures to a certificate holder or member if the insurance producer has direct sales or solicitation contact with the certificate holder or member, and the certificate holder or member pays the entire premium,” officials say.

A producer must provide the initial disclosure to a purchaser even if the producer is not compensated for the sale, and the producer must provide the disclosure even if a policy is being sold by mail, Internet or telephone.

Other producer compensation coverage from National Underwriter Life & Health:

• Producer Groups Sue Over N.Y. Department Comp Regs
• N.Y. Changes Comp Draft
• N.Y. Producer Group Threatens Suit On Comp Rule
• Empire State Gets Interim Chief, Publishes Regulatory Plans
• New York To Schedule Comp Hearings