Spitzer Notifies Insurers Contingent Commissions No Longer an Option

November 30, 2006

  • December 1, 2006 at 8:05 am
    David says:
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    America now has a new kind of justice, compliments of the Attorney General (Governor) of New York.
    Prosecute companies who break the law, settle with the same companies giving \”sweetheart deals\”, place your friends in high job positions, then amend those sweetheart deals so your friends can once again take advantage of the public, then turn around and penalize those who work hard to hold to what they thought was the law.
    Next year we\’ll see what \”trustworthy\” means in New York.

  • December 1, 2006 at 9:51 am
    Independent? says:
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    Reality is this, Independent Agents are not that Independent when they are conpensated generously by their \”appointed\” carriers to place more and more business with them.

    It blurs the agents ability to be objective on coverage matters when the money matters more. I am tired of all the whining. They will find another way to pay you.

  • December 1, 2006 at 10:25 am
    NY agent says:
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    Can I take back my vote for Spitzer?

  • December 1, 2006 at 11:02 am
    Lawrence Whalley says:
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    This is an unfortunate consequence of an out of control prosecutor, of which this nation has far too many. Just look at the tobacco deal where the states and trial bar got windfall monopoly rents for tobacco products without legislation. Our nation not only has courts legislating but now the prosecutors are getting into the act.

    Mr. Spitzer failed to indite those who pretended to shop for lower premiums and settled for some firings and elimination of contingent commissions instead. Meanwhile, his goal of being governor was realized with his daily headline seeking activity.

    Fraud and abuse took place but were not punished. Instead a means of compensation has been outlawed without passage of legislation.

    Too bad for New York State and too bad for all those harmed by higher costs in the system and lowered commissions.

    If contingent commissions and finite reinsurance are to be criminalized then pass legislation, don\’t allow prosecutorial zeal or arrogance to substitute the rule of law.

  • December 1, 2006 at 11:11 am
    Seems to me says:
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    So the \’official\’ reckoning does not appear to do anything more than political punishment of the offenders.

    Independent agents can choose not to deal with fraudulent providers. Company employees can choose not to work for scurrilous employers. Come on, how about a little open market vigilante justice?

  • December 1, 2006 at 12:32 pm
    Dale Longfellow says:
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    We sincerely \”thank\” Bob Rusbuldt and his entire staff for everything they are now doing for all Agents. We must do everything possible to reverse the actions taken by a handful of Attorney Generals and Insurance Carriers in making such settlements without our involvement. This should never have been done in the first place without our chair at the settlement meeting.

  • December 1, 2006 at 12:45 pm
    Nancy Lee says:
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    Since when does the State of New York regulate all of the States in the country?

  • December 1, 2006 at 2:25 am
    Scott says:
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    Are you insane? I dare you to cheat your clients because then I\’ll make them my clients. Isn\’t the free market fair enough for you? Who are you going to trust, Elliot Spitzer and the Government or the almightly dollar and consumer choice? Whinning? How about this for whinning, your a communist!

  • December 1, 2006 at 2:33 am
    Marm says:
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    Scott, if you could spell and obey the basic rules of grammar your mane calling would be just as ignorant.

  • December 1, 2006 at 2:35 am
    Ray says:
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    In response to \”Independent\”: The whole problem is the difference between national brokers and local independent agents. The carriers that choose to do business with local independents must write profitable business to compensate for the relatively low volume of premium. A contingency based upon profitability is good business. If a broker convinces a client to place all their business with that broker and forego competition that is a different matter that we should not be a part of.

  • December 1, 2006 at 2:40 am
    Steve says:
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    Contingent commissions and profit sharing are dead, there is no public or consumer outcry, and the politicians won\’t cave in on this issue without it. Companies will pay agents a flat commission on their books which will vary from year to year based on the prior years loss ratio. Overall commission rates will rise to offset the loss of profit sharing

  • December 1, 2006 at 2:43 am
    dan says:
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    Let the insurance industry deal with the solutions not the politicians. Spitzer was just using the headlines to get elected. This is just another example of Democratic politicians using their platform to appear to be champions to an uninformed public while slowly eroding our nations businesses of the need to compete and the ability to be profitable.

  • December 1, 2006 at 2:49 am
    Jack J Maniscalco says:
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    I beg to differ. In the short term overall commissions may rise, but in the long term, we agents will take the income hit.

    Here in the glorius Empire State, we had Work Comp \”reform\”. In essence, the State mandated that the premiums be split apart and there is now an uncommissionable NY Assessment. We, as brokers and agents, still have to sell the same price, only now we get paid less.

    The Main Street agents and brokers were not doing the dirty deeds, yet we get painted with that same brush. So, if the companies are forced to get rid of profit sharing, other than retaining the market, who cares about careful underwriting? It won\’t matter whether or not you give a company business that meets its appetite.

    And, of course, we all know that as independent agents, the only reason we represent so many companies is to…place the business with the company that pays us the most?

    Please Mr. Governor-to-be, please stop all trial attorneries from collecting contigency fees! Maybe then the cost of doing business in NY will reduce.

    Otherwise, he should take the time to learn what it is that we actually do.

  • December 1, 2006 at 3:00 am
    Bob says:
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    Part of the reality is that this action has little or no affect on a large number of carriers. Independent agencies who represent a Travelers or AIG for home and auto probably represent a number of regional companies as well. I think the number is 3-4 regionals to one National. As long as this is the case the major nationals will find themselves trying to be even more competitive with regionals that can be faster to market, and more responsive to local agents. Travelers will need to find a way to deal with the loss of revenue, and we should expect some increased commissions for all in the short run. If this catches on then Regionals will need to voluntarily raise their base rates as well.

    Perhaps this is a move for the AG\’s to promote disclosure by making it easier to understand, since there will be no complicated formulas.

    What keeps being missed is Consumers don\’t care today what an agent earns, they care what their premium is. Once we start creating an illusion that the percent commission is valuable information and part of a decision process then it suggests a carrier that pays less commission is a better choice. We will head down a very bad road for the consumer.

    Finally also getting lost is that it is a small handful of AG\’s, there are some states that see no value at all at the insurance department level, and in some states the requirements are against current regulations. There is an old phrase if you can\’t legislate, regulate and if you can\’t succeed there, litigate.

    With so many valuable real issues around capacity, availability, flood, wind, coverage details, expenses, fraud etc… it\’s amazing so much effort (money) is being spent here.

  • December 1, 2006 at 3:07 am
    Mark says:
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    Jack, that was perfectly said. My thoughts exactly.

    My brother has a theory that when government creates economic regulations that the exact opposite of what was indended to happen happens. It will be interesting to see how clever insurance people will work around the Spitzer ukase.

  • December 1, 2006 at 3:11 am
    Chuck says:
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    I know this will upset NY agents, but the four companies should just cease doing business in NY. As a seacoast agent, I have had to cope with the loss of many companies. NY agents are just as resourceful as seacoast agents.

  • December 1, 2006 at 3:20 am
    Mark Hester says:
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    We recieved notice from Travelers prior to this article hitting the street that they were discontinuing contingent commissions in the comming year(2007)…… Insurance companies are eager to comply with Spitzer\’s order, as it will reduce their expenses. Companies have shifted work and processes to their agents, in an effort to reduce their costs. This will give them an excuse to take another step in that direction… Spitzer\’s politically motivated ego will hurt the agents who had absolutly nothing to do with the price fixing and special commissions that were paid to national brokers on large commercial accounts….punish the guilty … not the innocent bystanders…

  • December 1, 2006 at 3:20 am
    Dazed and confused says:
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    What are the agents who write for these four settlement companies — AIG, ACE, Zurich, St. Paul Travelers — being told by these four carriers about how things will be done after 1/1/07?

    Chuck, FYI, my understanding is that the settlements\’ restriction on paying contingent commissions is not limited to NY but is universal (USA? worldwide?) for the carriers. Can others clarify whether I wrong?

  • December 1, 2006 at 3:34 am
    Bob says:
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    Dazed.. appears you are correct as regards contingencies.

    However, there are portions of the settlements that are is direct conflict with regulations in some states. In some cases if the agent follows the settlment he breaks the law.

    There is actually a belief by some AG\’s that disclosure by Agents of their commission equals full transparency. Really ? What about Intermediaries, MGA\’s wholesalers, reinsurers, seeding companies… and worse yet carriers who \”buy\” business with no disclosure of their loss ratios. That has a greater chance of hurting a consumer than anything else.

    I wonder if anyone knows how many independent agencies outside of the Top 25 firms were found guilty of these actions. If the answer is none, than how could this fix something not broken …

    There are way too many holes in this theory that disregards the way business is done and will ultimately let bad guys be bad again.

  • December 1, 2006 at 3:47 am
    Let\'s See says:
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    How about taking the \”contingent contributions\” that politicians drum up & put it in a public fund for ALL seekers of office to draw from (and nothing from taxpayer expenses). That way no one will have an unfair monetary advantage and there won\’t be any \”unfair\” compensation for those slimy scum buckets. Spitzer should see the fairness in that, shouldn\’t he??

  • December 1, 2006 at 3:52 am
    MindingmyBusiness says:
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    D&C,

    I represent all of the companies but only do Personal Lines with Travelers. They are having conference call on Monday to \”explain\” their compensation plan for 2007. I can assume that Jay Fishman is concerned about this announcement made by Spitzer to the point that he wants to make Independent Agents know that they will be offering something to offset this loss in revenue. Otherwise business is going to go elsewhere.

    We write a large volume of PROFITABLE business with Travlers and the PROFIT Sharing they pay our agnecy is an important revenue items for the agency. I capitalize those words becase that is the incentive and that is why companies tie the contingent bonus to profit. I get nothing if every account I place is a dog.

    I guess when I go to buy an refrigerator I should ask if Maytag has any sales promotion running for the corporation.

  • December 1, 2006 at 3:56 am
    Buiness Man says:
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    Independent,

    You are wrong. Competition forces Independent Agents to place the coverage with the best fit for the client. In some cases that is the most competitive program and in some cases not. But, Like Scott says if an agent tries to place all of his business with a carrier to increase his contingent and forgets about the client best interest then that client will be someone elses.

    It is called Free Trade my friend!

  • December 1, 2006 at 4:02 am
    joe says:
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    regarding the comment about regional companies not involved, I wonder how many of them will make this their own guideline, or simply be scared to pay bonuses?
    I wish the bid-riggers had been prosecuted; But the fines were the easy way out for the guilty and politically favorable for Spitzer.

  • December 1, 2006 at 4:16 am
    Dick says:
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    The overreation by Mr Spitzer is a disgrace. The guilty parties on both sides of the fence should have been prosecuted, instead we get contingent commissions on homeowners and auto policies banned. Where is he coming from?
    part of the penalty for Marsh and the other megabrokers was compensation to their customers. Maybe all of the Independent agents should start a class action lawsuit against Marsh and the other guilty brokers for our loss of contingent income.

  • December 1, 2006 at 4:18 am
    Oklahoma Agent says:
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    Spitzer is unfortunately for us just another one of those scumbucket politicians. His political aspirations have overridded any \”sense\” he may have once had about justice.

  • December 1, 2006 at 4:26 am
    HARRY says:
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    I KNEW HE WAS TROUBLE WHEN HE WENT AFTER TITANS LIKE GREENBURG & BUFFETT
    HE NEEDS TO GO

  • December 1, 2006 at 6:41 am
    LG says:
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    1 December 2006

    Really want to send a message to Spit-Move all operations, including personnel out of NY and see how the people will just love Spit!

  • December 2, 2006 at 10:46 am
    Bill says:
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    What is good for one is good for the other – let\’s ban lawyer\’s contingent fees, too. And all profit-sharing plans. And all sales commissions. And all holiday bonuses.

  • December 2, 2006 at 11:46 am
    Prakash V. Naor says:
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    \”Here in the glorius Empire State, we had Work Comp \”reform\”. In essence, the State mandated that the premiums be split apart and there is now an uncommissionable NY Assessment. We, as brokers and agents, still have to sell the same price, only now we get paid less.\”

    That assessment is for the 2nd injury fund, which is intended to fund a form of coverage separate from the WC you\’re selling. You don\’t do any additional work to get it, why is it fair you should get a large additional commission for passing through the charge?

    As for Spitzer, I wonder how many of these idiotic settlements get overturned in court?

  • December 3, 2006 at 7:14 am
    Local Agent in NY says:
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    To all you whiners out there you voted for him you deserve it!!!!! Blame your friends and relatives. Can anyone name 5 things other than this great case he did during his career as Attoney Gen?

  • December 4, 2006 at 7:03 am
    Be says:
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    Move everything to the South………
    …our politicians are easier to handle.

  • December 4, 2006 at 7:05 am
    Bea says:
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    If there were no Hank Greenberg\’s or Warren Buffett\’s who would we all work for?
    Someone has to be rich, to be able to pay us.

  • December 4, 2006 at 7:56 am
    diane says:
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    A few facts…The bid riggers were prosecuted..the specific people who did the bid rigging were prosecuted and are serving sentences. They are the ones who did a bad thing, a few bad apples have destroyed our industry. You all blame the mega brokers but it is not their fault it is a few and I say a very few people that worked for them and a few people who worked for the big companies (AIG, ACE, Travelers etc.) that caused this.

    Next you have the contingent compensation which is separate from the bid rigging but somehow Mr Sptizer seems to think they are one in the same. Yes, the contingent compensation caused a few to bid rig but just a few and I\’m sure in many other industries the same thing has occurred. We need contingent compensation and hopefully overtime we can get this overturned, we\’ll see.

    Finally, those who voted for Mr Spitzer as governor definitely have a screw loose, I don\’t know how anyone in the state of NY could have thought he would make a good governor. How could that man be helping the people? Let\’s see, he\’s caused anyone working for any of the insurance companies or large brokers to lose jobs and anyone with stock in those companies to lose money. I\’m sure we all know someone who was affected? He also has now affected the entire industry with contingent compensation, that affects everyone we know? Well good luck NY with him in office who knows what\’s going to happen, glad I don\’t live there anymore but don\’t move down south when the going gets rough!!!!

  • December 4, 2006 at 10:17 am
    Reality Check says:
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    Well, in Communistifornia(at least that\’s what we are becoming) we get to reap the loss of the contingencies too. If the companies now set commission rates the same for all agencies, we will surely see the real adverse impact on preferred markets of no incentive to produce profitable business.

    The carriers must make sure that they terminate agencies who have 3 to 5 year loss ratios exceeding 50%-55%. There is no reason that my clients should pay for those agents who don\’t know how or even care to underwrite. We have had combined with our markets in PL 35%LRs for 2002-2006. We stopped playing the write all comers game and started focusing on risk management for our PL clients. Now we have to see if we will be able to afford to continue with the loss of revenue.

    Thanks crooks (Industry and political alike)for ruining a good thing for consumers.

  • December 4, 2006 at 11:08 am
    Hilton G. Martin says:
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    Well,this is going to cost the public more,not less. If carriers want our good business, I guess they\’ll have to up our commissions to offset the loss of contingencies. And that will be before end-of-year P/L. I guess they\’ll just have to either roll the dice or up their premiums to compensate for the extra risk they\’re incurring.

  • December 4, 2006 at 11:29 am
    New York City Agent says:
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    Prior to the whole N.Y. contingent commission inquiry, we received a letter from the State Insurance Department requesting copies of contingent agreements that we had with our carriers. We called the Department and offerred to provide them with copies of our profit sharing agreements. The Department spokesman told us that they were not concerned with these agreements. Obviously, there is a disconnect somewhere. It\’s also ironic that the majority of the business alleged to have been steered to the major carriers had nothing to do with Home and auto business.

  • December 4, 2006 at 11:45 am
    Reality Checkmate Agent says:
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    I don\’t agree with you thinking you can take credit for your loss ratios. Our job is to produce business. The carrier\’s underwriters dictate their standards and prices and use all sorts of tools such as credit scoring, CLUE, MVRs, inspections, etc. to accept, reject and price risk. We agents are also being asked to stay out of the claims handling process completely, and just produce.
    I always thought that being terminated by an agency carrier was more political, or an insidious form of redlining than anything else. Terminations should only be due to malfeasance or by mutual consent. There is a reason the direct writers have been increasing market share. Ever hear of a life or health agent being term\’d due to losses? Same should be true in P-C.

  • December 4, 2006 at 12:14 pm
    d.alumbaugh says:
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    Total agreement. Ban lawyers and politicians and then see how nice life would be, even in the big apple..
    God, how can you people in NY stand the politicians you have?
    By the way who handles Spitzers insurance? Maybe there is something there that should not be renewed, anywhere..
    Pepper the ******* with emails, faxes and run nice large ads about your lovely new governor..He is undoubtly related to our idiot Governor here in Washington State!

  • December 4, 2006 at 12:45 pm
    Reality Check says:
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    Doing business the right way does control loss ratios(exception: CATS). Our combineds had been in the 60\’s until we stopped doing \”free phone quotes\”. We got rid of all the late payers and single policyholder accounts. And whalla! The turn around was astounding. Anyone that thinks differently is crazy.

    Did I mention I\’m in a communist state (CA) where credit scoring isn\’t allowed? We also moved our idiot commisioner up the ladder to LT Gov this year. Hopefully with the new insurance commissioner(Poizner), we will be able to have logical conversation.

    Termination of agencies who consistnenly are unprofitable is the only solution. If they can\’t turn it around, they shouldn\’t be in the business. Agents who consis-tently write every piece of business that calls or walks through the door without properly underwriting and educating the consumer is a disgrace to the industry and unfortunately cost us all money in the long run.

  • December 4, 2006 at 1:06 am
    grumpy says:
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    I tend to agree with the comments about the NY people electing Spitzer as governor, but I think most of the complainers here are not from NY. In any case, here\’s some food for thought. Are contingent commissions widespread in the real estate industry? We will never see an investigation in NY\’s real estate industry (how corrupt is it compared to insurance? what a silly question…) because why?

    Look up Elliot\’s family history (where his family\’s money is coming from). Too bad his dad wasn\’t an AIG tycoon.

  • December 4, 2006 at 1:24 am
    bill P says:
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    Since the Carriers \”Rolled Over\” on us.

  • December 4, 2006 at 2:05 am
    LLB says:
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    Many regional personal lines carriers pay the same base commission as Travelers and have contingent commission (profit sharing)plans equal Travelers. These companies were not affected by the large commercial brokers and hence will continue present contracts. Suggest Travelers agents contact them and switch the Travelers business. In fact you probably will receive help in switching and additional bonuses.

  • December 4, 2006 at 2:24 am
    Tom Drawert says:
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    There was an opportunity to be heard in the various settlements. We were denied the chance by the parties – the companies and the Attorneys General. If the companies had want us heard, we would have.

    Salivating at saving hundreds of millions of contingency dollars while wringing their hands over the \”misunderstanidg\” of agents versus national brokers is too, too evident.

  • December 4, 2006 at 2:24 am
    John B says:
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    Compensated generously???? Evidently you are not an independent insurance agent.

    In addition you are an inexperienced person regarding matters of business and economics. You understand the micro and not the macro view.

  • December 4, 2006 at 2:25 am
    Tom Drawert says:
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    There was an opportunity to be heard in the various settlements. We were denied the chance by the parties – the companies and the Attorneys General. If the companies had want us heard, we would have.

    Salivating at saving hundreds of millions of contingency dollars while wringing their hands over the \”misunderstanidg\” of agents versus national brokers is too, too evident.

  • December 4, 2006 at 2:29 am
    Company Guy says:
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    Spitzer went after publicly-held firms, threatened criminal action, and forced Boards to concede. Yes, the bully tactics were unfair, but very effective. Let\’s see, multi-million dollar fine or a destroyed company? Not a tough choice. Look at what the guy did to AIG and MMC. Why is Liberty Mutual fighting back? Consider the word \”mutual.\” The outcome should be instructive.
    Agents complain, but all politics are local. Where were the NY agents all this time? Why didn\’t they organize to put a stop to this madness by legislating or lobbying this man under control?

  • December 4, 2006 at 2:36 am
    Tonka says:
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    I bet Ralph Nader cheers this type of ignorant thing on. I wonder if he has a profit sharing plan for his employees in addition to a 401K. A tacit understanding to the employees is the following: the more havoc created, the more money flows our way. The more money flows our way, the more goes in the profit sharing plan. DO AWAY WITH IT RALPH!

  • December 4, 2006 at 2:41 am
    50 year agent says:
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    I can understand and appreciate the companies plight. However, I do feel the difference between acting as a broker vs as an agent even Spitzer would have understood if explained to him properly.

  • December 4, 2006 at 2:49 am
    Company Guy says:
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    You\’re giving the guy too much credit. Once the companies and their lawyers got over the shock of how little the NYAG and his law student minions actually knew about insurance, they spent yeoman effort trying to educate the man. You are witnessing their success (or, rather, lack of).
    Most of the outcomes from this nightmare–except for the actual legitimate bid-rigging penalties–are viewed as ridiculous overkill, non-sense, irrelevant, or a downright reflection of the man\’s ignorance.

  • December 4, 2006 at 2:55 am
    50 Year Agent says:
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    OK understood and believed. Now I hope as a company man you will believe me when I tell you without personal lines profit sharing my agency losses money on personal lines.

  • December 4, 2006 at 3:06 am
    Jack J Maniscalco says:
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    This escapade illustrates what we New Yorkers have to contend with in any and all business dealings. Our nanny state likes beating us into submission with its tort-laden club.

    Only the lawyers get a free ride. Hmmm…most of the NYS legislature are members of the ABA…I wonder…

    Spitzer probably has his coverage witht he lizard.

  • December 4, 2006 at 3:09 am
    Company Guy says:
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    Yes, we know that is generally true, unfortunately. It will be interesting to see what Travelers comes up with. I\’m confident that they will compensate their agents fairly and competitively.

  • December 4, 2006 at 4:50 am
    Local Agent in NY says:
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    Sir Elliot Spitzer probably got solicited from the lizard from his DMV registration renewal in the mail(How Fair is That) Geico had an advertising insert in DMV registration renewals. If the PIA and Agents in NY had some NUTS something would have been done. All the years the LIZARD Geico claimed to cut out the middleman, they now have local offices in NY. They now have a middleman contact. When are the carriers going to get aggressive and advertise about that one?

  • December 5, 2006 at 7:16 am
    Jack J Maniscalco says:
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    Seems to me, we are all upset because the Governor-to-Be wants to change the face of capitalism. HE wants to set wages, profits, commissions… and not allow the parties to the contract (agencies and companies) to do so.

    Yessireebob, I can\’t wait for more FEMA-style competition!

  • December 5, 2006 at 8:03 am
    Reality Check says:
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    I think you meant he wants to change the \”name\” of communism to capitalism for the sake of the governorship. Unfortunately, there are some agents who are overpaid(the same as any industry). But for those of us who work hard to do things right, the commies want us to work for the same wage as those who don\’t. That\’s okay, I\’ll start taking the same number of days off and mandatory leaves instead of working since I\’ll be basically a state employee.

  • December 5, 2006 at 11:22 am
    Hawk says:
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    We prefer the consumer to decide if we are paid too much, not a politician.

    Your statement about America is disjointed.

    Regarding your belief that our industry is an oligopoly shows your carelessness for not investigating the facts.

  • December 5, 2006 at 3:12 am
    Death Beast says:
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    Prostitution 103? What?! What is that?

    Do you mean Proposition?

  • December 5, 2006 at 3:23 am
    Death Beast says:
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    I\’m not sure how you\’re bringing him into this..maybe b/c he is a \”consumer advocate\”…

    In any case if you were really interested you should simply go to his website and try to contact him. With an issue as important as insurance he would be crazy not to get involved or at least a representative of his to get back to you. With the internet, access these days is incredible. Give it a try.

    here is his site: http://www.nader.org/

    it took me less than 10 seconds to google it.

  • December 5, 2006 at 3:29 am
    Death Beast says:
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    Eliot Spitzer is walking down the street right towards you. He is by himself and your eyes meet…

    Now what would you do?

    Would you say all these things that are mentioned in this thread to him? Basically you have his undivided attention and probably a couple of minutes to get your thoughts across to him.

    So what would you do/say?

  • December 5, 2006 at 3:40 am
    Reality Check says:
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    Actually it was Prostitution 103 because Nader was paid $10,000 each for five speeches backing it and we all know Harvey Rosenfield who drafted it is an attorney(prostitute) in CA in 1988.

    Only 5 out of 58 counties approved it (51.2% Yes to 48.8% No).

    But back to Spitzer. He is a perfect Hypocrite; just a politician who wouldn\’t roll over on his own kind(allah:Kennedy, Clinton, etc.) when they do wrong. That\’s right, he is just another prostitute.

  • December 5, 2006 at 6:55 am
    Sister of the industry says:
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    What a bunch of cry babies! Most of you agents and brokers don\’t deserve the commission you are being paid in the first place! This is America, which is supposed to be a capitalistic country. The insurance industry has been an oligopoly long enough! Look out for some competition!

  • December 7, 2006 at 7:04 am
    B.P. in CA says:
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    Zurich and Travelers have informed us that they well no longer be offering contingency contracts. They have not indicated what will replace them or how (or if) they will compensate us, just that it will be eliminated. Zurich will also require disclosure in their proposals. Communicating with all the clients directly, some of which could be construed as if we (Main St. agents) were the one\’s that committed the wrongdoing. So much of the settlement addresses issues unrelated to what actually happened.

    Interestingly enough, I thought AIG gave only \”Brokerage Appointments\” – so the side agreements with the \”BIG Brokers\” were special and/or separate from what Main St. Brokers work under.

  • December 7, 2006 at 4:26 am
    Dazed and Confused Too says:
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    Last week, this question was posted by Dazed and Confused:

    \”What are the agents who write for these four settlement companies — AIG, ACE, Zurich, St. Paul Travelers — being told by these four carriers about how things will be done after 1/1/07?\”

    In looking at the long string of postings that followed that question, I did not see any answers. Much commenting about Spitzer in particular and politicians in general with a few rants too about carriers in general.

    Any facts, insights and/or prognostications yet that can be shared about what is changing and how in 2007 for these carriers\’ agents? We are all rapidly approaching year-end 2006.

  • December 11, 2006 at 10:42 am
    Les says:
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    With a recent federal judges decision giving new hope to those flood damaged persons in LA. I suggest we ain\’t seen nothing yet. It appears the actions of a few will continue to affect the inaction of all. I need more convincing the reaction was justfied by the action.[of those acused of doing wrong] In the mean time their needs to be more education of the governor of how the retail insurance business works apart from the wholesale part.



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