The New York State Insurance Department has posted a collection of answers to common questions about the state’s Regulation 194 producer compensation disclosure rules.
The regulation requires producers to provide a mandatory initial disclosure to all insurance purchasers.
Producers do not have to volunteer information about compensation amounts, but they must dislose compensation amounts when customers ask for the informaton.
New York department officials say in the new batch of Regulation 194 guidance that the regulation does apply to sales of life insurance, annuities, accident and health insurance, and state-mandated disability contracts as well as to sales of property-casualty insurance.
The regulation does not apply to reinsurance.