Posted On: October 21, 2004, 1:58 pm CDT

Posted By: Rose Mary Ciraulo

I totally agree with Greg. In my many years on the company side we routinely gave agents and brokers contingent commissions. Most of these deals were based on a profitable result. Sometimes extra commission would be given on a very large account written as new business to cover the agent's or broker's additional marketing and transfer costs (set up with a new company). There were volume commitment agreements as well. However, underwriting decision making and pricing were never compromised.

It sounds, unfortunately, as if some brokers may not have acted in the best interest of their clients and some underwriters were bullied by brokers - but Mr. Spitzer, please don't spend government money by buying an elephant gun when you could use a fly swatter!!! Your career should not be more important than what's fair...the expense of prosecuting this case will be enormous and will ruin many insured, insurance company and broker relationships...this will hurt the public as well. The industry has a great deal of integrity as evidenced by all of the good and honest people who work in it. Let's not throw many of the best practices that help both the broker and the public out the window.