Citing the increased need for consumers to know where their insurance dollars are truly going in the current economy, Delaware regulators are exploring possible commission disclosure rules for agents and brokers.

“This is an area of regulation that obviously continues to be of interest in terms of regulation and our department shares that interest,” said Gene Reed, director of market conduct and analysis for the Delaware Insurance Department. “We always want complete disclosure. Especially now, in this economic downturn, it is of the utmost importance.”

Karen Weldin Stewart

Reed and state insurance commissioner Karen Weldin Stewart told IFAwebnews.com that the department is culling different policies and regulations from bodies including the National Association of Insurance Commissioners and the National Conference of Insurance Legislators. They are also looking at New York’s draft regulations on contingent commission disclosure currently under review.

“We are looking at these laws to see if they are suitable to adopt here in Delaware as regulations or legislation,” Reed said.

Weldin Stewart said there is no set timeline to get regulations in place, calling it “an ongoing process.”

“This is something that has been mentioned in our staff meetings, but not made a top priority as we are dealing with things from the state legislature right now,” she said.

When regulations become a greater reality, Weldin Stewart said, she will include the input of insurance agents on state task forces for health, life and property-casualty insurance as well as consumers.

This story originally appeared in the June 2009 print edition of Insurance & Financial Advisor.