CPCU: Industry Should Toe Ethical Line
By Steve Tuckey
NU Online News Service, Oct. 29, 3:40 p.m. EDT?The Chartered Property and Casualty Underwriters Society called for the entire insurance industry to abide by the code of ethics it imposes on its own 28,000 members.[@@]
In a statement issued at its annual meeting in Los Angeles, the Society board called for "all insurance practitioners to abide by the same ethical standards it demands of its members."
The board noted that "willfully misrepresenting or concealing a material fact in insurance and risk management business dealings violates the Society's ethical code."
Donald Hurzeler, newly installed Society president, said, "The Society's ethics code prohibits the almost 28,000 members from engaging in price fixing, bid-rigging, or any practice that violates the law or a regulation, including practices alleged by New York Attorney General Eliot Spitzer."
While Mr. Spitzer has been looking into the practice of insurers paying fees to brokerages for steering business their way since April, the investigation picked up steam earlier this month when instances of bid-rigging were allegedly uncovered.
Since that time the top three brokerage companies have announced they will no longer accept such contingency fees, even though they have maintained they were legal and fully disclosed to clients.
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