NAAA to Discuss Commissions

The National Auto Agents Alliance (NAAA), which had announced plans to file suit against several insurance companies that had been cutting commissions, will comply with the wishes of several state insurance departments which have requested that the NAAA attempt to talk through the commission issues with the companies before a suit is filed. The NAAA will send letters outlining the issues to the CEOs of each insurer involved in the anti-consumer practice of increasing rates without passing along the reductions to consumers agents’ fees for service have been reduced or elimintaed. Art Mastera, NAAA executive director, stated: “The board has agreed that companies should be given the opportunity to correct their actions prior to any litigation or formal complaints being filed with regulators.” The NAAA would like to open up a dialogue with companies that have been arbitrarily and capriciously reducing commissions, according to Mastera, who said that if the dialogue fails, the NAAA would continue to interview law firms in anticipation of litigation.