The Independent Insurance Agents & Brokers of America Inc.has filed additional federal court papers in a battle by agentgroups to intervene in a settlement that affects their fee processwith insurer Zurich.

IIABA in a brief submitted to U.S. District Court in Newark,N.J., replied to arguments by state attorneys general who contendit is not an appropriate time for agents associations to oppose anagreement between them and insurer Zurich.

The Alexandria, Va.-based IIABA filing was made Friday, daysafter the National Association of Professional Insurance Agentsfiled a reply to arguments by the attorneys general (see NU Online,Oct. 13).

At issue is the PIA and IIABA's concern about the producercompensation and disclosure provisions in the Zurich settlementagreement between the company and attorneys general after aninvestigation of the company's business practices.

Like PIA, IIABA opposes the settlement because it mandates thatagents and brokers provide insureds with the company's compensationdisclosure form.

The attorneys general argued that the associations were filingthe briefs too early in the process.

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

“Imposition of this form on agents and brokers will inhibitagents' and brokers' communication with their customers andincrease customer confusion regarding incentive compensation,” saidIIABA President Alex Soto, who is also president of Miami,Fla.-based InSource Inc., in a statement.

Robert A. Rusbuldt, chief executive officer of IIABA, said: “Theintervening attorneys general represented to the court in August2006 that they intend to seek court approval of the ZurichSettlement, which includes the requirement that brokers and agentsprovide their customers with the mandatory disclosurestatement.

“If it was timely for them to intervene in August for thatpurpose, our request to appear as amicus curiae [friends of court]is timely now.”

IIABA said that contrary to suggestions in the opposition'sbrief, the association does not oppose “pre-binding disclosure” ofincentive compensation; rather, it opposes the proposed requirementthat brokers and agents provide their customers with Zurich'smandatory disclosure form, explained Mr. Soto.

“The [IIABA] was not a party to the negotiations and had noopportunity to raise its concerns about the mandatory disclosureform before the Zurich settlement requiring it was executed,” Mr.Rusbuldt added.

Debra L. Perkins, executive vice president and general counselfor IIABA, said by filing now the association was giving thesettling parties the opportunity to revise the mandatory disclosureform provision voluntarily.

A copy of the complete reply brief is available atwww.independentagent.com.