We have been stuck in a cold weather pattern for a while now. I went to the final Jets game at the Meadowlands, so I know about cold! It’s time to start moving and warm up. The first event to get your temperature up is the January 21st meeting concerning Producer Compensation Disclosure at the Crowne Plaza by LaGuardia Airport. Many agents and brokers do not realize how this regulation which is being pushed by the NY State Insurance Department can change the way agents and brokers do business. We have arranged for Michael Barrett - the chief lobbyist of IIABNY, Thomas Faist - the chief lobbyist of CIBGNY and Matthew Guilbault - PIANY’s director of government and industry affairs to explain their respective organization’s position on the proposed regulation.

What constitutes compensation? Obviously our commission does. Profit sharing, too, but what if we do not meet the requirements to receive profit sharing? Do we tell the client we might make more money? Do we include the bagels and donuts that the company’s marketing rep brought to our office? How about the lunch we had while going over our growth plan with the company? I know this all stems from the prehensile actions of the large brokerages that were caught in Elliot Spitzer’s web, but it is an offense to the industry that we have to disclose what we make on every policy. I never ask the salesperson at Nordstrom’s how much he earns by selling me a pair of loafers. I like the price. I like the shoes. I pay for them and leave.

Do we have to disclose the potential compensation on every quote that we give a client, or just the one we sell? Will this preclude us from requesting quotes from all our companies to save time? What about on renewals? Do we need to send the client a compensation disclosure on every renewal as well?

You need to be at the Crowne Plaza at LaGuardia Airport on January 21st and find out as much as you can about this topic. IIABNY has taken this on as its number one, two and three priority. When you hear what could be in store for agents and brokers, you may warm up because your blood will begin to boil.

As a follow up to the Producer Compensation Disclosure issue, IIABNY is holding its second annual Capital Event in Albany which includes L-Day on February 8th and 9th. It includes workshops, dinner and entertainment on Monday. There is a buffet breakfast planned for Tuesday morning to which all the NYS legislators have been invited. Here you can discuss the issues with the legislators and their staff. Afterwards, we will meet individually with some of them in their offices, especially those on the insurance committee. Last year we were very successful in achieving some of our goals. It took many years at L-Day, but we finally got NYPIUA permanent and brought back flex-rating. This year we will express our opposition to the proposed Producer Compensation Disclosure, push for standardization of wind deductible triggers on property coverages and support legislation that would place the State Insurance Fund on an even footing with other insurers providing workers’ compensation insurance.

The legislative process works when you get involved. At L-Day, you have a unique opportunity to meet directly with the legislators. Imagine the impact that will be made on the legislators when hundreds of independent agents and people involved in the industry visit them and educate them about the insurance industry and issues facing it. YOUR VOICE COUNTS, and your presence at this important function has a tremendous impact on IIABNY’s lobbying efforts throughout the year.

We need numbers! Every year the legislators ask where their constituents are. We lamely try to explain that we represent all the agents in their district, but it would be more effective if YOU were there in Albany with us. We especially need agents from Queens and Brooklyn. Think about being part of the Capital Event. Details about the bus transportation, hotel rooms and events are available on our website.

Stay warm…