An agents group has submitted additional court papers arguing ithas a right to object to Zurich Financial Services' settlement with10 state attorneys general that it contends will saddle memberswith unnecessarily burdensome disclosure requirements.

The National Association of Professional Insurance Agents in abrief filed with U.S. District Court in Newark, N.J., argued thecourt should take its objections into consideration before theinsurer's agreement goes into effect.

PIA responded to a Sept. 26 attorneys' general brief, which saidthe group had no right to be heard.

The Zurich agreement would settle accusations of bid-rigging,price-fixing and steering of insurance contracts by a few insurancebrokers in return for the payment of lucrative, volume-basedcontingent commissions from Zurich.

Zurich has agreed to two different settlements involving 12states, which in total would cost the company $325 million andrequire the company to stop paying contingent commissions on excesscasualty business and require agent compensation disclosure noticesto clients.

Len Brevik, PIA executive vice president and chief executiveofficer, said: “Agents were shut out of the negotiating processthat led to these proposed settlements, and now the attorneysgeneral don't want the court to hear our concerns. That is unfairand unconscionable.”

PIA agents have a stake in the court's decision and should beheard, the group argued. PIA filed a friend of the court brief(amicus curiae) in mid-September objecting to the agreement.

The association contends that the attorneys general are wrong intheir assertion that the PIA's concerns should wait until after thecourt decides to impose the agreement.

The attorneys general from California, Florida, Hawaii,Maryland, Oregon, Texas, West Virginia, Massachusetts, Pennsylvaniaand Virginia filed the opposing brief.

PIA countered, saying in its brief: “This court should avoid thewaste of time and resources that would result from deferring PIA'sobjections. Efficiency and justice demand that they be addressednow.”

Part of the objection concerns the notices which would have tobe given by independent agents, and not the company, topolicyholders.

In addition to PIA, the Independent Insurance Agents &Brokers of America has filed an amicus curiae friend of court briefobjecting to the Zurich agreement.

Besides objections to the method of disclosure, agents alsoobject to the barring of contingent commission payments. Theassociations contend that the agreements usurp the power of statesto regulate insurance.

A spokeswoman said the IIABA plans to file its own response tothe attorneys' general objections some time next week.

For its part, Zurich filed a letter with the court contendingthat the portions of agreement the associations object to are toointrinsically entwined with other settlement agreements to removethem from the court's decision.

Zurich argued that any objections to the decision should beexamined after the implementation.