The New York State Insurance Department and New York State Office of the Attorney General conducted a hearing in Albany on July 23 that addressed allegations that contingent commissions create a conflict of interest for consumers. Disclosure to the client of this compensation was also under question.
Neal L. Sullivan, CPA, chair of the Independent Insurance Agents & Brokers of New York Inc., said that past unlawful business by former employees of mega brokers should not penalize the future of the independent insurance distribution method. He explained that mega broker clout helped contribute to former New York Attorney General Eliot Spitzer's investigation and the charges that followed; he also said that the market influence of Willis, Aon Corp. and Marsh & McLellan allowed for front-end commission arrangements.
To view Sullivan's submitted testimony, visit //ny.iiaa.org/Legislation/Sullivan_Testimony072308.pdf
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