Question from an IIABNY member: We just wrote a mono-line Connecticut homeowners. I found directions on page 44 of the booklet about Regulation 194 that addresses multi-state policies. In reading this, I believe we do NOT have to send a compensation disclosure notice to a Connecticut client? Can you verify? OR correct?
Answer: The New York Insurance Department actually addressed this very question in an opinion they issued last month:
Thus, to the extent that the insurance producer is soliciting, negotiating, or selling insurance in this state, via telephone or otherwise, that insurance producer performed those acts using the producer’s New York license. In general, if an insurance producer is required to have a New York license to make the sale, then Regulation 194 applies. The fact that the risk is located in another state has no bearing on the applicability of Insurance Law § 2102; rather the acts that require a license took place in New York. Accordingly, if an insurance producer that is licensed in both New York and another state receives a telephone call in New York from an insured who is purchasing a car in the other state and seeking an auto insurance policy, then the producer must provide compensation disclosure as long as the producer is soliciting, negotiating, or selling insurance in this state.
Based on this opinion, I think Regulation 194 requires you to give the initial disclosure notice to the Connecticut client.