Insurance brokers in Rhode Island soon must tell their customers how much they will earn before selling them policies, according to a R.I. General Assembly statement released Wednesday.
The legislation (2005-H 6233 Aaa), recently signed into law by Gov. Donald L. Carcieri, says an insurance buyer has to sign a “documented acknowledgment” of a broker’s compensation for their policy prior to the sale. The law takes effect Jan. 1, 2006.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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The legislation follows New York Attorney General Eliot Spitzer’s case that alleges national insurance firm Marsh & McLennan “steered unsuspecting customers toward insurers with whom it had lucrative payoff agreements,” according to the statement.
