Posted On: October 18, 2004, 8:38 am CDT

Posted By: Greg

What about the agents? Agents are the ones who get paid on a percentage of the premium they generate. In my ten years as an agent I have seen nothing but less pay and lots of stories. Agents have been asked to understand that "profit sharing" and sweet heart deals are off limits to the commission agreements made between themselves and their brokerage houses. If twice as much money is on the table then the percentages of commision paid out is probably where the crime has been committed. Maybe thats why industry wages have been stagnant. No governemnt entity is stepping in to view this. Our president was loosely quoted as saying that insurance companies kept losing law suits on how they (don't) pay there overtime and retirement benefits - So he changed the overtime rules so they would not be breaking the law. Any Allstate agents left to complain? (Independent Contractors)
The rest of spitzers accusations are sort of bologna to me. If you went into any store in the world and the merchant had three products for sale, could you sue him because one is not the best in the world? Of course not. Would you be foolish if you did not shop in any other shops for an important product? Of course!
As far as asking to get a quote from someone that is not interested in selling the product, that happens all the time. Example- No insurers want to sell auto coverage in New Jersey. The minimum medical liability allowed is a quarter of a million dollars for the companies in New Jersey. The medical liability required toi be covered California is none. California has hundreds of companies who will give a quote- New Jersey has less then ten.

The proof of inpropriety would be if they refused to accept the risk they quoted.

I don't see how keeping most of a companies revenue in management and not distributing it out to the sales force that brought it in hurt the public. It appears to be a scheme to skirt paying there employee's not hurt the public. Marsh offers three quotes to people on policy renewal. They are not required to. Mostlikely this is to stop their customers from shopping elswhere. If they gave just there best quote would less people be hurt? No. No "crime would be present" Do they have a responsibility to offer the cheapest coverage available if the company offering the product is terrible to deal with? No they do not. If as an agent I don't like a company or they don't pay me for the work needed to be done I would pass. Would you put something on your store shelf if there was no profit in it? No you would not.

The agents and workers, that's who are taking it on the chin.

Greg Lloyds
greg@glpi.biz