Posted On: August 20, 2008, 1:29 pm CDT

Posted By: F. MICHAEL CONTE

I SAT THRU THE HEARINGS HERE IN NEW YORK CITY, AND IT WAS SAID AT NUMEROUS TIMES THROUGHOUT THE DAY "NO DECISION HAS BEEN MADE" IT IS CLEAR THAT A DECISION HAS BEEN MADE, AS SOMEONE FAMOUS SAID "ME THINKS THOU PROTEST TOO MUCH"....

IT SEEMS THAT THE PANEL MEMBERS FORGOT THAT THE INSURANCE DEPARTMENT APPROVES RATE FILINGS AND BROKERS SELL THE PRODUCTS APPROVED FOR SALE IN THE STATE. THEY BELIEVE THAT BROKERS AND AGENTS MAKE UP THEIR OWN RATES AND PRICES. THEY ARE ALSO UNDER THE IMPRESSION THAT I COULD FORCE A CARRIER TO STAY ON A RISK, REGARDLESS OF ITS UNDERWRITING MERIT. SOME OF THESE INCORRECT ASSUMTIONS MAY BE ATTIBUTERD TO THE FACT THAT THE PANEL MEMBERS HAVE FOUND ALL THIS TO BE TRUE IN "MEGABROKER LAND" ON NUMEROUS OCCASIONS THEY REFEREANCED AN INVESTIGATION THAT HAS UNCOVERED ALL OF THIS,THIS REPORT WAS NEVER IDENTIFIED OR PRESENTED FOR OUTSIDE REVIEW OR COMMENT, YET A HEARING WAS CALLED AND TESTIMONY REQUESTED.

SOMEHOW THIS INVESTIGATION INTO ILLEGAL ACTIVITY TURNED INTO A PARADE OF MEGA BROKERS CLAIMING THEY CAN NO LONGER COMPETE.THE LAUGH OF IT IS THAT THE MEGA'S WHO CALL FOR AN EVEN PLAYING FIELD HAVE BEEN EATING MY LUNCH FOR YEARS. WHAT THEY CLAIM TO BE THE "UNFAIR ADVANTAGE" IS EXACTLY THAT WHICH HAS ALLOWED THEM TO FLOURISH.

MOSTLY THEY HAVE NOT HAD TO COMPETE WITH THE LIKES OF ME BECAUSE THEY WERE ABLE TO NEGOTIATE BETTER DEALS WITH THEIR COMPANY PARTNERS,AND DIDCTATE UNDERWRITING GUIDLINES.

AS WE GO FOWARD IT IS CLEAR THAT WE WILL BE DEALING IN A "NET OF COMMISION WORLD". WILL THIS MAKE IT IMPOSSIBLE FOR CARRIERS TO NEGOTIATE BETTER DEALS WITH BIGGER BROKERS?