United Industry Effort Results in CDI Deletion of Contentious Proposed Regulation Language
Rancho Cordova…The Western Insurance Agents Association commended the recent action by the California Department of Insurance which deleted over-reaching language contained in a proposed regulation dealing with “for causes” termination.
Michael Golden, Chairman of WIAA, cited this as yet another example of how a united voice by broker agent associations made the difference in the policy debate.
“Preventing bad public policy making by the Department or the Legislature requires a focus and a united voice. Just as we appear to have beaten back onerous disclosure requirements, we now see the CDI responding to our input – the industry’s input — on such an important issue,” said Golden.
Citing his July 2005 opposition letter submitted to the Department of Insurance, Michael J. D’Arelli, Vice President, Legislative & Regulatory Affairs, noted that “There is no statutory authority requiring insurers to explain their reasons for termination of an agent. Currently, Form 447-54T does not require information pertaining to at fault terminations, but rather requires the insurer to sign a statement if the termination id due to the belief that the agent may have violated the Insurance Code.”
D’Arelli noting the heart of the insurance industry’s message to the CDI, “These proposed regulations failed to clarify existing law and created an unfair burden on insurers. We couldn’t be happier and we know those who stood united are just as pleased.”
Mr. D’Arelli’s original letter submitted in August can be downloaded here.
The Western Insurance Agents Association (WIAA) represents approximately 750 independent property and casualty insurance agencies and brokerages, and more than 5,000 licensed insurance professionals.
For more information regarding this news release please contact Alan Smith, Jr. (916) 443-4221
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