Wording in National Association of Insurance Commissioners compensation disclosure model legislation that could negatively affect the long-standing practice of contingent commissions was discussed in Atlanta by Georgia Insurance Commissioner John Oxendine, Steve Jones, president and Jerry Duke, executive vice president of the Professional Insurance Agents of Georgia. At issue was wording that would have negatively affected the long-standing practice of contingent commissions, as well as require agents to disclose their compensation on each transaction.
“I have no desire to encumber agents with undue reporting in the normal course of their business,” Oxendine said. “My desire is to clarify current Georgia regulation and to be able to protect consumers from illegal practices that are already covered by code. Before my department does anything, I wanted to meet with the leadership of those who would be most directly affected by our action.”
Jones pointed out that part of the NAIC “draft legislation” could be construed as overreaching, and after discussion and research the commissioner agreed and removed it from the department’s draft. Oxendine later attended a meeting of the full PIAGA board of directors to explain his position and reiterate that he did not want any legislation that would impact or impede agents from the normal course of doing business.
PIAGA’s board felt the changes proposed by Oxendine were warranted and should not adversely impact members. Oxendine’s department will have draft legislation ready for introduction shortly after the Georgia Legislature reconvenes Jan. 24.
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