A New York appeals court has tossed out one of the civil charges against Liberty Mutual brought by the New York Attorney General's Office, which is suing the insurer for misconduct related to its payment of contingent commissions.
On Thursday the New York Supreme Court, Appellate Division, in New York, ruled that the insurer could not be held responsible for failing to disclose payment of contingent commissions to brokers. However, the court did uphold the portion of the suit dealing with charges of bid-rigging.
In its ruling the court dismissed those sections of the case dealing with the payment of contingent commissions, saying the payments "are not illegal" and the insurer was under no obligation to reveal those payments because "no special relationship" existed between the parties.
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