A New York personal-lines customer, after receiving the producer's baseline Reg 194 disclosure, asks in writing for a detailed description of the compensation the producer will receive from the insurer for placing the homeowners policy. Under 11 NYCRR 30, the producer must do which of the following BEFORE the contract of insurance is bound?

Why this is the answer

Reg 194 has two layers. Layer 1 (baseline): at/before application, the producer states role and the fact of insurer compensation. Layer 2 (on request): if the customer asks for more detail, the producer must — before the policy is bound — provide a written description of the quantity or value of the compensation, including any contingent or supplemental compensation tied to volume, profitability, retention, or growth, and obtain the customer's written acknowledgment. The disclosure cannot be deferred until after binding, nor outsourced to the insurer's website, nor refused on trade-secret grounds.