Posted On: July 23, 2007, 2:36 pm CDT

Posted By: Dimag

Interesting settlement agreement. I still don't understand how "Contingency Bonuses" are bad? Elliott Spitzers stretch of somehow these bonuses are "illegal" and "unlawful" is a crock and of course the insurance industry didn't defend it's practice.
It's one thing for an agent and underwriter to collude and fabricate a quote for their own self interest, they should be shot. However, that in my opinion will not change. But for the smaller agencies who sell BOP's based on state filed rates, what did we do wrong? How did we collude? This whole issue to indict all insurance agents and imply we acted unfairly is a crock! How does an Independent Agent with only one national appointed carrier, like the Hartford, differ from a captive agent (ie State Farm, Nationwide or Allstate agent who "steers" the business to their own company since they don't sell for anyone else)? The Independent Agent though is guilty of steering, yet a State Farm agent who only sells State Farm is not guilty. Very interesting.