DOI Update

By Len Barend
Legislative Chair

A workshop was held on August 14, 2008 in Carson City with a video feed to the DOI office in Las Vegas. The main purpose of the workshop was to review several items prior to the DOI meeting scheduled for the following week.


Of particular interest was the commission item on the agenda. The purpose of the new regulation was to change commissions to be calculated by a % of premium or a flat rate per application. Many of the CCAHU membership felt this was an easy out for the DOI instead of enforcing the current regulations. (There are three insurance carriers that are not in compliance with current regulations by paying commissions on the base rate of the premium rather then the entire premium amount.)


Jim Wadhams, our lobbyist was contacted and our options were discussed. Jim suggested that this was an unnecessary and undesirable regulation of commissions without statutory predicates. He then wrote a letter to the commissioner suggesting that the regulation should be removed. He also requested that the non-compliance issues be dealt with under existing regulations and the proposal be withdrawn.


Jim's suggestions were adopted by the commissioner and the proposed regulation was withdrawn and the DOI will be sending letters to those insurance carriers out of compliance.
This is an example of why brokers should be members of the association because without our presence this regulation could have been adopted and our income severely impacted.