As has been expected following Superintendent of Insurance James Wrynn’s comments at PIANY’s MetroRAP, further changes have been incorporated into the producer compensation disclosure regulation. PIANY has confirmed that the New York State Insurance Department filed Regulation No. 194 with the Secretary of State for publication in the Feb. 10, 2010, edition of the New York State Register as a final regulation, effective Jan. 1, 2011. Although this version will represent the final adopted version of the regulation, PIANY will continue to work with the department on drafting guidance and compliance documents targeted specifically to property/casualty producers, which will attempt to clarify any compliance issues for producers.

Your association has obtained and reviewed the actual final regulation documents from the Secretary of State’s Office, but the New York State Insurance Department has asked that we not share the documents with others until after publication in the New York State Register. PIANY will, however, take the liberty of summarizing the changes embodied in the new draft:

• The new version requires only that producers provide a “description of the role” the producers play in the sale instead of whether the producers represent the purchasers or insurers.
• The new version also drops the requirement that producers provide initial compensation disclosures on all policy renewals and provides that information relative to renewals be provided only if requested either 30 days before or 30 days after the renewal.
• The new version provides that insurance producers will not be required to retain a copy of any written disclosure if they have a written agreement with the carrier that the carrier retains the copies.

Rest assured that PIANY will begin work on developing compliance documents as well as draft disclosure language to comport with these requirements to ensure that our members are fully prepared for the implementation of this new requirement on Jan. 1, 2011. Final publication in the New York State Register is expected on Feb. 10, 2010. The New York State Register may be accessed online.

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