The recent adoption of sweeping life insurance commission disclosure rules by the New York State Insurance Department has agents up in arms, not only in New York but across the country.

Often the trend-setter in the adoption of regulations designed to protect consumers, the New York Department’s new regulation is already drawing fire from the various trade associations representing life insurance agents.

Regulation 194, as it is known, requires agents to disclose that their compensation from the sale of a policy can vary depending on a number of factors and to inform the consumer that information about compensation is available both about the product being purchased and others that were considered during the sales process.

In a provision with certain big-time agents in mind, it also requires the disclosure of any material ownership interest that the agent has in the insurer issuing the policy.

This is a real break-through for consumers of life insurance. Both the adoption of the regulation and the vehement opposition and likely litigation coming from agent groups – and probably also life companies – will draw lots of attention.

All of it will help to alert consumers to the fact that there are unbiased sources of advice about life insurance and frequent opportunities to substantially reduce or even avoid commissions and thereby lower premiums or buy more protection and cash value for the same premium.

This may be the dawn of a new day for life insurance consumers. One can not only hope, but now perhaps believe it is so.