3-13-09 NY Reg comment prod comp FINAL

March 13, 2009Eric R. Dinallo, SuperintendentNew York State Insurance Department25 Beaver St.New York, NY 10004RE: DRAFT 1/29/09 NYSID REGULATION: (11 NYCRR 30)PRODUCER COMPENSATION TRANSPARENCYDear Superintendent Dinallo:Thank you for the opportunity to review and offer our comments regarding thedepartment’s draft producer compensation disclosure regulation. We appreciate theopportunity to meet with your staff to further discuss a large number of specific concernsour members have with the draft regulation. Moreover, we appreciate the opportunity toparticipate in the working group discussions organized by your staff relative to this issue.As we indicated in our initial correspondence regarding this matter, we completed acomprehensive line-by-line review of the draft regulation and outlined a number of issuesof concern to insurance producers. Moreover, in response to the invitation of your staff torespond with draft language specifically addressing our concerns, we submit our detailedconcerns and suggestions for your consideration as an attachment to this correspondence.From the outset, however, we feel it incumbent upon us as representatives of insuranceproducers across New York state to identify and address a few fundamental points ofdisagreement between ourselves and the department relative to the need for disclosuregenerally. I will address these in a point-by-point fashion.1) That a problem exists and, therefore, mandatory disclosure is ...