New York Considers Broker Comp Bill

[Duaine]

New York state lawmakers are looking at a bill that could require health insurers to add interest to late agent and broker commission payments.

S. 7300 would require carriers to send out health insurance commission payments within 45 days after receiving the premium payments for the coverage.

Unless a carrier had a good excuse for making the payment late, it would have to add interest.

The interest rate could be a benchmark rate set by the state tax commissioner.

If the commissioner failed to set the rate, the default rate would be 12 percent per year.

Sen. James Seward, R-Oneonta, N.Y., a past president of the National Conference of Insurance Legislators, introduced the bill earlier this month. The bill is now in the state Senate Insurance Committee.

"We need this in all states. The insurance executives get their paychecks on time every month. I want my earned money on time too!"


New York considers broker comp bill | LifeHealthPro

 

[RayNY]

We have a LOT of insurance bills come up, some are very strange or progressive, like this one. Sent to review with one co-sponsor, I guess we'll see how it turns out.

Honestly, my first thought was "We don't have a law requiring commissions, and DFS has approved no-comp plans for sale in NY this year. What's to keep carriers from offering nothing to avoid the potential for a penalty?"

The late payment thing is really an issue here, however. A lot of brokers are getting paid very late, or not at all, and have to fight to get what they're owed.