IBA West has developed a Guide to Compensation Disclosure for California insurance agents and brokers, but this guide has wider application for agents and broker around the country (see here for a summary, or here for the Guide). IBA West has been resisting (successfully) California Insurance Commissioner John Garamendi’s efforts to impose broad fiduciary duties that go well beyond the current legal duties.
California Insurance Commissioner Garamendi recently announced he will drop efforts (see here) to institute new agent & broker regulations aimed at imposing disclosure requirements and fiduciary duties:
If the industry is able to correct this problem on its own, we do not need regulations
The guide is intended to provide suggestions for California practitioners in evaluating whether and how to disclose compensation to customers. As IBA West points out, it does not provide legal advice. This guide is a timely and useful resource to agents and brokers in all states.
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