Under Regulation 194, agents and brokers in New York are now required to alert clients, in writing, how they are being compensated and to provide specific details to clients on request. The Independent Insurance Agents and Brokers of New York, who challenged the rule, will now focus on helping agents comply. Experts say other states may craft similar disclosure rules. Compensations matter to consumers because an insurer paying a low commission to an agent can be more generous in annual interest or other product features. For some popular types of annuities, commissions can range from 5% to 7% of the invested amount with some insurers paying 8% or more to agents. The rule could be a starting point for consumers to consider whether a low-commission version of the product, or a different product, might offer greater value.
Insurance Fees, Revealed (Wall Street Journal)
Related Life Products Resources
Download your free booklet "The Hidden Advantage - IUL Illustration Secrets" from a proven $19.7 million IUL first-year premium producer.
At the "Get Set for Life" event in Chicago, you’ll discover how to close more new business with a proven 5-minute presentation that will add 6 figures to your bottom line.