Insurance agent and broker organizations are expressing concern that attorneys general are thwarting the legislative process by seeking to bar their contingency compensation arrangements through civil actions.
They note insurers' recent consent to settlements designed to cut back on contingent commissions. Those settlements concluded civil suits by New York Attorney General Eliot Spitzer after investigators found some hidden fees and commissions were used by insurers to reward brokers collaborating in commercial insurance bid-rigging schemes.
American International Group and Zurich America have signed agreements with a number of states including New York, Illinois and Connecticut that under certain conditions could eliminate their payment of contingency commissions to brokers.
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