Posted on 22 Nov 2010
The New York State Supreme Court issued a ruling in favor of the New York State Insurance Department on the Article 78 lawsuit, upholding the NYSID's authority to promulgate Regulation 194, which mandates compensation disclosure. The regulation is scheduled to go into effect on Jan. 1, 2011.
As non-petitioners in the lawsuit, PIA has been able to focus its efforts on working with the NYSID to mitigate the impact of the regulation on producers. PIA remains committed to easing the burden of the regulation and providing tools that agencies can use to incorporate disclosure into their business workflows. These tools can be found on PIA’s Agent & Broker Compensation Disclosure website at: www.pia.org/COMM/abcd/. They include:
• Guidance on compliance and enforcement rules from the NYSID, in the form of the circular letter and future OGC opinions to further clarify the requirements;
• NYSID-approved language for primary disclosure, drafted by PIA and available to the entire industry;
• User-friendly flow charts for determining when disclosure is necessary and when it is not.
PIA is continuing to work with the NYSID to seek clarity on issues not sufficiently addressed in the circular letter and is developing additional tools and resources to assist producers in complying with the regulation, including:
• NYSID-approved secondary disclosure language, drafted by PIA and available to the entire industry;
• A producer-tested workflow, which will allow agency management systems to fulfill the disclosure and record-keeping requirements of the regulation.