Just when brokers were beginning to feel the contingency fee scandal was behind them at last, another major target was hit last month. New York Attorney General Eliot Spitzer, in his parting shot to the industry before taking over as the state's governor, sued insurance broker Acordia and parent company Wells Fargo.
The allegations, like those against Marsh and other big brokers, involve receiving the equivalent of kickbacks in return for steering insurance contracts to certain carriers willing to pay a little extra for the business. (See details of the story on page 7.)
Unlike with Marsh, where executives were accused of blatantly creating false bids and lying to clients, Acordia is charged with making financial arrangements with some insurers and freezing out others because they would not pay bonus fees.
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