AI-Summary – News For Tomorrow
This proposed bill aims to increase transparency in insurance transactions. It mandates that insurance agents clearly disclose to clients whether they represent the insurer or the insured. Agents acting on behalf of the insurer must inform prospective policyholders they are representatives of the insurance company. Conversely, agents representing the insured must disclose their allegiance to the client. This disclosure must be made using a standardized form provided by the director, ensuring consistency and clarity across all insurance transactions. The goal is to prevent confusion and protect consumers by clarifying agent roles.
News summary provided by Gemini AI.
If enacted, the bill would require that an agent of the insurer must not sell, solicit, or negotiate an application for insurance unless the agent discloses to the insured or prospective insured, on a form issued by the director, that the agent is a representative of the insurer. Likewise, an agent of the insured would be required to disclose, on the same director-issued form, that the agent is a representative of the insured before selling, soliciting, or negotiating an application for insurance.Â
