PLNew Yorkmedium
Under New York Regulation 194 (11 NYCRR 30), at what point must a producer disclose the role they play in the transaction (agent or broker) and that they will be compensated by the insurer for placing the coverage?
At or before the time of application, with a written description of the producer's role and compensation
BAt least 30 days after the policy is issued, in the renewal notice
COnly when the customer specifically requests compensation information in writing
DOnly after a claim is filed and contested
Why this is the answer
Regulation 194, codified at 11 NYCRR Part 30, requires every insurance producer (agent or broker) to provide the prospective customer with a baseline written disclosure at or before the time of application. The disclosure must state (1) whether the producer is acting as an agent of an insurer or as a broker for the consumer, (2) that the producer will be compensated by the insurer for placing the coverage, and (3) that more detailed compensation information is available on request. Triggering the disclosure at application — not at renewal or post-claim — is the heart of the rule.
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