New York Acting Superintendent of Insurance Howard Mills and Sen. James Seward (R-Oneonta), chairman of the Senate Insurance Committee, told the Independent Insurance Agents & Brokers of New York Inc. that they would not seek “stringent” regulation governing how agents’ and brokers’ incentive fees are paid or disclosed to clients. Mills and Sen. Seward spoke at the Albany Legislative Day sponsored by IIABNY. “There’s a big, big difference in my mind between a mega-broker who has a great deal of market share and power and the typical independent agent who operates in the neighborhoods across upstate and downstate New York,” Seward said.
Mills stated that he would not “rush” to issue regulations governing agent and broker incentive agreements. However, Mills added, “If you’re looking at contingent commissions that are just volume driven, there seems to be an obvious conflict with a fiduciary responsibility, and that’s something we saw with the settlement yesterday,” Mills said, referring to the $850 million settlement reached between Marsh & McLennan, the New York attorney general and the insurance department.
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