A New York and New Jersey Lawyer Who Represents Policyholders and Beneficiaries in Life Insurance Denial Cases

New insurance broker disclosure rules are planned to be in effect in New York beginning in January 2011 that would require insurance brokers and agents to disclose to consumers how they are compensated by insurance companies.

As I have previously discussed, some insurance companies pay extra commissions to agents based on the number of its policies sold by the agent, providing an incentive for the agent to market that company’s products over those of its competitors.

Insurance trade groups are planning to challenge the new regulation in a lawsuit. They argue that the state Insurance Department lacks the authority to enact the regulations.

The article appeared in Insurance & Financial Advisor, a publication for the insurance industry.

As a life insurance attorney who represents insureds and their beneficiaries, I believe that the regulation is a very good idea. When purchasing an insurance policy, a consumer should understand the incentives that might be motivating the agent in order not to be improperly influenced. I further believe that the insurance department has the authority to issue this particular regulation.

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