The Independent Insurance Agents & Brokers of New York ("IIABNY") announced in a press release last week that it will appeal a lower court's decision to uphold Regulation 194, last discussed here, which requires mandatory producer compensation disclosure. The appeal will be filed with the New York State Supreme Court’s Appellate Division, Third Department in Albany sometime this summer. According to an IIABNY spokesman, the Council of Insurance Brokers of Greater New York, which was a party to the original case in the lower court, may also join the appeal.
In a recent interview, IIABNY President and CEO Richard A. Poppa said, “Regulation 194 is a costly and unnecessary burden on law-abiding insurance agents and brokers. We are going to appeal the ruling because our members expect us to and because it is the right thing to do.”
Christopher A. Brassard, IIABNY Chair of the Board, also commented that, “IIABNY is continuing the fight against this unfair regulation. Our members deserve no less.” Brassard also added, “While we agree that consumers who want information about a producer’s compensation should get it, we oppose this ‘one size fits all’ regulation that has added unnecessary paperwork and effort to producers’ obligations. We support a system in which producers can have appropriate discussions with their customers as needed.”