West News Viewing comments for:
Western Agents Blast Insurers for Settlements Restricting Compensation
West News • August 2, 2006
The Western Insurance Agents Association has issued a statement saying the settlement that St. Paul Travelers has just reached with attorneys general from Connecticut, Illinois, and New York is ...
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| Subject | Posted By | Posted On |
|---|---|---|
| RE: RE: RE: WIAA Blast | Reality Check | Aug 2, 2006, 3:56 pm |
| RE: RE: WIAA Blast | John M | Aug 2, 2006, 2:08 pm |
| RE: WIAA Blast | Mike | Aug 2, 2006, 12:56 pm |
| WIAA Blast | midwest | Aug 2, 2006, 12:43 pm |
| Ashame that this person just doesn't get it | Mike | Aug 2, 2006, 12:37 pm |
| WIAA Blast | HERE, HERE! | Aug 2, 2006, 12:30 pm |
| Back to article | ||
Subject: Ashame that this person just doesn't get it
I think the writer of this article doesn't seemt to grasp that no one has a problem with the contigent arrangement in itself, however, what the problem was that the brokers and carriers were essentially price fixing coverages for the insureds.
This was done by redirecting coverage bids to carriers who were not necessarily the lowest effective coverage pricing, in exchange for the brokers receiving commissions from the carriers for the placement of the coverage which had been steered to them.
So, the carriers involved wish to settle the claims expeditiously in order to avoid what could be much more significant financial damage.
Until this broker puts the all of the financial relationships on the table, the insureds will not trust them as they should.
So, I hope that contigent commissions continue some form, but without the added
extra undeclared kickbacks.
Thank You.