New regulations proposed by Attorney General Martha Coakley attempt to micromanage the day-to-day business of thousands of independent insurance agents in the Bay State, disrespecting their ability to do their job professionally, according to the head of the Massachusetts Association of Insurance Agents.

Francis Mancini, the associations’ president, testified yesterday at a hearing in Boston on the proposed regulations. He said regulations intended to add consumer protections for auto insurance customers would create massive burdens for agents.

The slate of new proposals aimed at adding greater transparency to rate pricing and advertising, among other things, drew a packed crowd of consumer and business advocates to Boston for the hearing. A similar hearing is slated to be held in Springfield today.

The proposals increase Coakley’s powers as a watchdog of insurance companies and agents; reiterate violations already in place under the Division of Insurance as well as set up additional requirements. Under one proposal, insurers’ auto insurance advertisements cannot promote costs as "best" or "lowest," unless the insurer can produce a numerical analysis to prove it upon request.

Mancini spoke specifically to the proposals dealing with independent insurance agents, which include a provision that agents must not steer business to any insurer based on the level of compensation that company will dole out to the agent.

The rule is far too broad, and would lead to agents automatically recommending the company with the lowest compensation – regardless of which policy may be more appropriate – out of concern that they’d be in violation of a rule against steering to companies that compensate better, Mancini said.

In addition, agents would also be required to tell their customers all the insurance companies they have contracts with. If they do not choose to provide quotes for all those companies, the agents must list reasons why. Mancini argued that stipulation heaped far more work upon agents’ backs with little to no benefit for consumers.

Not all business advocates were unhappy with the proposals, however. John Donohue, CEO of Quincy-based Arbella Insurance, said his company supported Coakley’s attempts to demand fair advertising among insurance companies.

Previously, a competitor had quoted Arbella’s annual auto rate against its own lower price in a television ad, but failed to mention that its price was only for six months of coverage, Donohue said. Coakley’s proposal specifically lists that practice as a violation.