American Agents Alliance, an association of independent insurance agents in Arizona and California, opposes the "incentive commission" disclosure regulations recently proposed by California Insurance Commissioner Garamendi. The Alliance has released a position paper written by the Los Angeles law firm of Barger & Wolen, LLP, now available on the Alliance's website.
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In November, Robert W. Hogeboom of Barger & Wolen provided "Broker Fiduciary Regulations -- Legal Questions and Answers" and has since written and edited a "Position Paper on Broker Fiduciary Obligations" (Rev. Dec. 7, 2004).
Atty. Hogeboom's position paper includes a summary of the factual circumstances of enforcement actions and lawsuits initiated in the fall of 2004 in California, New York and elsewhere, challenging "incentive commission" practices of certain insurance agents and brokers. He provides an analysis of the proposed regulations and criticizes them on the grounds that they mistate the current law in California regarding the duties of agent and brokers and attempt to expand it beyond the authority afforded the Commissioner. The eleven-page paper cites decisions of the California courts in support of its position.
Posted by dougsimpson at December 14, 2004 02:53 PM | TrackBack