exchange for providing favorable risks amidst contingent commission arrangements. In 2008, AIG paid $125 million to settle with 9 states. Commission and fees In most states there is no requirement to disclose the commission of the broker to the customer, but in New York, a regulation ("Regulation 194") was adopted in 2011 which required disclosure. Brokers or agents may decide to reveal their commission upon request. In most states, agents cannot charge a fee in addition to their commission, although Texas is one of the exceptions. Broker vs. agent Though not an absolute separation; an insurance agent is an insurance company's representative by way of agent-principal legal custom. The agent's primary alliance is with the insurance carrier, not the insurance buyer. In contrast, an insurance broker represents the insured, generally has no contractual agreements with insurance carriers, and relies on common or direct methods of perfecting business transactions with insurance carriers. This can have a significant beneficial impact on insurance negotiations obtained through a broker (vs. those obtained from an agent). Any person acting as an insurance agent or broker must be licensed to do so by the state or jurisdiction that the person is operating in. Whereas states previously would issue separate licenses for agents and brokers, most states now issue a single producer license regardless if the person is acting on behalf of the insured or insurer. The term insurance producers is used to reference both insurance agents and brokers. Disintermediation As in many industries, there is a trend toward disintermediation where consumers buy directly from the insurer without an intermediary. However, the $46 billion online vehicle, home, and life insurance markets for retail consumers have accelerated since 2012, with the rise of insurance comparison websites. Publicly traded companies Amazon, Walmart, and Google continue to disrupt how consumers purchase insurance with varying success. Google, later exited the online insurance comparison market in 2016, and Allstate threatened to shutter their online consumer brand Esurance after disappointing profits. See also Financial adviser Loss-control consultant List of Acts of Parliament of the United Kingdom Parliament, 1960-1979 Economics of climate change References Insurance Financial services occupations Articles containing video clips Investment Brokerage firms Economics consulting