NEW YORK—The New York State Insurance Department is again modifying its producer compensation disclosure rule, Insurance Superintendent James Wrynn told a group of insurance agents.

The long-anticipated disclosure rule, which regulators have been working on since they held joint hearings in 2008 with the New York attorney general’s office (BI, July 28, 2008), was published in the New York State Register in December.

Under the published rule, insurance producers operating in New York state would be required to notify insurance buyers of their right to request information on the compensation that producers receive from insurers in connection with their insurance placements.

In addition, they must automatically disclose to clients—either orally or in prominent writing before the insurance or renewal application is sent to the insurer—whether they represent the buyer or insurer for purposes of the sale and, if applicable, that they will receive compensation from the insurer.

Interested parties had until Jan. 16 to comment on the published rule.

The NYSID apparently took those comments to heart as regulators are working on the fifth iteration of the rule, which the NYSID said it hopes to release soon.

According to a Friday statement by the Professional Insurance Agents of New York State Inc., Mr. Wrynn told agents attending its Metropolitan Regional Awareness Program on Thursday that while the final rule still will require agents to disclose their role to clients either orally or in writing, any further detail will be required only upon client request.

Additionally, Mr. Wrynn said the final regulation will be modified so no disclosure is required on renewing business unless the buyer asks for it within a 30-day period. Producers also will be allowed to rely on insurers to maintain disclosure records for the required three-year period rather than maintain them themselves, according to the PIA.

An NYSID spokesman confirmed Mr. Wrynn’s comments, but he declined to comment further.

It remains to be seen whether the most recent revision will trigger another comment period. Clarifying, nonsubstantial changes do not require public comment.