New York insurance regulators have updated a few of the provisions of their proposed broker compensation regulations, according to a state trade association, which says the changes will ease the burden of producers complying with the law.

The changes are to requirements for when the proposed law would apply and how long compensation details can be sought by a policyholder, according to the Professional Insurance Agents of New York, a trade group representing agents in the state.

Since first proposed in January, the New York State Insurance Department’s rules seeking transparency in insurance transactions have undergone a number of changes, including a large-scale redrafting of the law released in June after meetings with a number of industry representatives.

The final draft of the proposed regulation marks the first step in the formal process of obtaining legislative approval. That draft has been submitted to the office of Gov. David Paterson and publication in the New York State Register soon, according to the Professional Insurance Agents of New York, a trade group that has been working with state officials on the rules.

The new draft requires producers to disclose information about compensation expected to be received in connection with quotes “presented,” rather than quotes “obtained”.

The PIA said it feared that the burden on producers would be onerous if they had to disclose the compensation for quotes that never advance past the inquiry stage. Policy purchasers will have 30 days to request a producer’s compensation under the new draft, a reduction from the three years that had been proposed. The new draft also requires the producer to provide the requested information within five business days, rather than 30 days, after the request for information is received.

The PIA, which has met with state officials numerous times, continues to maintain that no need for the broker compensation rules exists and that state regulators have no statutory authority to promulgate the regulations.

Regulators in several states have told IFAwebnews.com they are closely monitoring the actions of New York on broker compensation transparency and may consider their own laws based on the outcome in New York.