Insurance Fees, Revealed (Wall Street Journal)

Under Regulation 194, agents and brokers in New York are now required to alert clients, in writing, how they are being compensated  and to provide specific details to clients on request. The Independent Insurance Agents and Brokers of New York, who challenged the rule, will now focus on helping agents comply. Experts say other states may craft similar disclosure rules. Compensations matter to consumers because an insurer paying a low commission to an agent can be more generous in annual interest or other product features. For some popular types of annuities, commissions can range from 5% to 7% of the invested amount with some insurers paying 8% or more to agents. The rule could be a starting point for consumers to consider whether a low-commission version of the product, or a different product, might offer greater value.