There are so many unknowns at this point.

July 1, 2026 by Sheryl J. Moore

Heads up! Monumental news ahead-

The National Association of Insurance Commissioners (NAIC) is exploring whether field marketing organizations (FMOs) and brokerage general agencies (BGAs) should have to disclose their compensation. 

See here: https://content.naic.org/committees/a/life-insurance-annuities-cmte

Does that mean merely overrides?

How about hurdles/incentive compensation?

And index fees- will they be spared?

How about national overrides- will they be affected?

How about proprietary product fees?

What if the marketing group/BGA is using stacking, and has other FMOs and BGAs in their hierarchy?

What if the FMO/BGA is passing-down some of their overrides to the street level agent?

There are so many unknowns at this point.

The NAIC “A committee” has “…requested comments on whether technology could help regulators monitor compensation incentives.”

So, is this merely for independent agents’ third party intermediaries only? Or, does it include wholesalers that are employed by insurance companies?

Why wouldn’t banks and broker/dealers be asked to make the same disclosures?

And while we’re at it- shouldn’t career agency insurance companies have to disclose what their compensation is on life/annuity business?

“The request for comment suggests regulators are interested in understanding how wholesalers are compensated and whether those compensation arrangements could influence the products the wholesalers’ affiliated agents recommend to clients.”

My suggestion? Let’s know what we are talking about, before we suggest such technological innovations.

Further- it would be great if we could worry about things like indexed annuity illustrated rates and misleading indexed life videos on Tik Tok/YouTube, before biting-off more than we can chew.

Respectfully, of course. -sjm