BROOKLYN, N.Y. – New York State Department of Insurance Superintendent of James Wrynn told producers at the Professional Insurance Agents of New York State Inc.’s Metropolitan Regional Awareness Program yesterday that the regulation the NYSID will release on disclosure of producer compensation has been modified from previous drafts to the benefit of producers. Nearly 500 insurance professionals attended MetroRAP, at the New York Marriott, Brooklyn, N.Y. the association’s first RAP of the year.

The superintendent said the NYSID heard PIANY’s objections and promised to work with the association to ensure that the disclosure requirements will not be overly burdensome. “We’ve heard everything everyone has said,” he reported, noting the NYSID has read letters of concern about the draft regulation from various parties as recently as Jan. 15 on the issue.

Wrynn said the final draft will require agents to disclose their role in the sale of insurance to the consumer, either orally or in writing, and further detail will be required only if the insured requests it. “We’re kind of making it so you just have to disclose your role,” he said.

Further, the superintendent reported disclosure will not be required upon renewal of a policy, unless a purchaser asks for it within a 30-day period, and producers will be allowed to rely on insurers to maintain records for the required three-year period. 

“I don’t believe we can have any lesser standards and still call it disclosure,” Wrynn said.

The superintendent told the audience he wants to continue to work with PIANY to sort out compliance issues to ensure the regulation “meets disclosure needs without being overly burdensome,” for the producer community. PIA has been told the revisions are expected in mid-February, but a specific date has not been released.

Wrynn also reported his progress on multiple goals he shared with PIA in Albany after taking office this fall, including instituting Lloyd’s of London-style Insurance exchange, for which he is “guardedly optimistic” after meeting with 75 carrier executives and an investors meeting scheduled at New York City’s Gracie Manor on Feb. 2, to faciliate this effort.

He reported an uptick in fraud, motivating his plans to amend Regulation 68, which implements New York’s no-fault law. He said the NYSID has received “very few negative comments” about his draft revising these rules.

Other issues he discussed included: New York’s homeowners’ coastal homeowners coverage, especially on coastal property, for which he noted availability but persistant cost concerns and a need to explain to insureds the reasons for increases or non-renewals. He also said the NYSID is working to standardize windstorm deductibles.

In addition to the keynote address, The Distinguished Insurance Service; Company Executive of the Year, and Industry Professional of the Year awards and the Bernard I. Kozel and Arthur Moll scholarships also were presented.

MetroRAP also featured a lively trade show and continuing education sessions of particular interest to agents and brokers in New York City: Workers’ compensation–crossing state lines, and E&O loss prevention for insurance agents and brokers, both taught by Ivan Cohen, CRM, CIC, AAI, CPIA, CRIS, and eligible for credit in New York and New Jersey.

PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.

-30-