NU Online News Service, Dec. 20, 4:00 p.m.EST

New York State's two major producer groups said they havereceived approval from the State Department of Insurance for theirmodel forms that member agents and brokers can use to comply withNew York's new disclosure requirements.

The Independent Insurance Agents & Brokers of New York(IIABNY) and the Professional Insurance Agents of New York (PIANY)said they received approval last week from the insurancedepartment.

IIABNY said its forms, approved Dec. 16, have minor editorial changes fromthe forms agents received during the 15 live seminars and fourwebinars the association has held since July.

"These model disclosure notices are part of IIABNY's inclusiveapproach to both fighting this regulation and preparing members tocomply with it," said IIABNY Chairman of the Board David M. Geliain a statement. "We will be better able to guide our members nowthat the insurance department has agreed that our model languagemeets the regulation's requirements."

PIANY said it received approval for its secondaryforms, which it said are simple fill-in-the-blank forms foragents to use.

The forms fulfill the requirements of Regulation 194, themandatory disclosure regulations taking effect Jan. 1. Under theinsurance department's new regulation, the agent or broker mustdisclose the nature of their relationship with the insurancecompany and inform the customer that they receive compensation fromthe company including contingent commission.

Should the customer request additional information, the producerwill have to release more detailed information about the nature ofthe compensation.

The new regulation has been criticized by both organizations,but while PIANY worked with the insurance department to iron outissues over compliance, IIABNY sued the insurance department inhopes of ending implementation of the disclosures.

In November, a state Supreme Court judge ruled he would not stopthe regulation from going into effect come Jan. 1. IIABNY said ithas not decided yet if it will appeal the judge's decision.