First, the original draft required producers to disclose the amount or value of any compensation to be received by the producer. The new revised draft imposes a new burden on consumers to make a request for compensation arrangements such as the amount of compensation and alternative quotes. Second, the most recent revision exempts renewals from the disclosure requirements altogether. RIMS argues it is equally important for insurance consumers to know how the producer is compensated in a renewal as it is in the original policy transaction. This would apply to all contracts finalized prior to implementation of the final rule. RIMS urges the Department to reinstitute these requirements so as to ensure complete transparency and proper consumer protection.
âRIMS has been actively involved in discussions among stakeholders and the New York State Insurance Department for many months,â says Deborah M. Luthi, ARM, CCSA, member of RIMS board of directors and director of enterprise risk management services at Matheson. âWe viewed the original proposed regulation as a step in the right direction towards strengthening the trust relationship between the consumer and producer. While the regulatory process is advancing, RIMS is disappointed that the new document does not contain consumer protections that were part of the original proposal.âÂ
Historically, RIMS has supported the Departmentâs efforts in ensuring that commercial buyer protection is a priority. The Society hopes to work closely with the state to improve this regulation. RIMS plans to issue an extensive formal commentary to the Department prior to its July 29 deadline for soliciting feedback.