We recently highlighted the importance of the full disclosure of broker compensation and the New York State Department of Insurance’s effort to expand mandatory disclosure rules. A recent case out of Massachusetts only serves to reiterate the danger to customers of undisclosed fees:
(Massachusetts AG Sues Agency Accused of Collecting Bogus Fees)
While the brokers referred to in the above article were particularly unscrupulous, appropriate disclosure regulation serves to discourage any such behavior. We continue to support the intent of full disclosure of broker compensation.
Many states already require fee agreements if brokers are collecting fees and commisions. The proposed regulation will improve the environment for insureds seeking to mitigate the cost of insurable risk in New York state.
