It should come as no surprise that life insurance agents’ groups at both the state and national level have joined forces to try to prevent the required disclosure of life insurance commissions in New York State.

Such a regulation would really represent a breach in the World of Oz curtain that has stood between life insurance consumers and the opaque world of “life insurance magic.” Since New York is often viewed as a trend-setter for insurance regulations, the adoption of a commission disclosure requirement would be a major advance for consumers and could herald the more widespread enactment of such a rule by other states.

With predictable hyperbole, the agents’ lobbies contend that such a regulation would “decrease sales, decrease financial protection, increase unemployment, hurt the state economy, and increase the burden on state government programs.” Perhaps surprisingly, they said nothing about the impact on global warming. Nor, of course, did they explain why the same commission disclosure mandated for the sale of securities, including even variable life insurance and annuities, should not apply to other life insurance products.

We will see where all of this leads – whether it’s truly the start of a long overdue pro-consumer move by life insurance regulators, or whether, as some speculate, the proposal will be thwarted or watered down to only require disclosure in the rare instance that the consumer requests it (probably in writing). It’s a positive sign anyway, and they don’t come along very often in the realm of life insurance regulation.

If the link still works, look here for the story: http://ifawebnews.com/2009/12/17/agents-groups-flood-n-y-regulators-with-opposition-to-compensation-rule/.