Dinallo and Cuomo forget that they already signed off on supplemental commissions? And, with respect to contingent commissions, they probably have not statutory authority to act — and IIABNY and LICONY will probably challenge any regulation they try to adopt without such authority. So, let the boys hold their hearing, collect the information, and then let the issue die its inevitable death.
Of course, the first thing I learned when I entered this business is “Screw the client! look for the policy that pays the best commission.” Only lawyers(AG & Commissioner) would think everyone is only motivated to do the selfish thing.
I guess they never worked in the competitive marketplace where doing the right thing for your client is what makes you money.
This is so transparantly political that it also transparantly stupid.
There are several dozen industries where contingencies/bonuses are paid for sales and productions.
Yet name even one other industry where a public hearing has been proposed for the public to weigh in on it.
Good grief, but we’re headed for trouble in this country.
If the AG and Insurance Department really wanted to do something for the insurer, they’d require that upon a loss each carrier and agent or broker notify them of their right to a PA. Reality is reality. Aconsumer could care less who makes money off the premium as long as the premium remains the same. The carrier and the agent or broker don’t want PA’s because they make sure the insured gets what he paid for – a realistic settlement, not the low ball figure the carrier offers.
What’s up with Dinallo and Cuomo? A public hearing? You were both wrong and LOUD WRONG! Spitzer and Dinallo both made this big bruhaha over contingent commissions and they were wrong. Accept defeat gracefully.
I think its a good idea to hold public hearings on insurance agent commisions. I also think its important to hold public hearings on how elected and appointed officials are compensated by lobyist groups. I particularly would like to have an independant organization investigate how many times politicians speak to lobyists, what was discussed at those meetings, and how much lobyist money directly or indirectly flows into the pockets of our politicians or is spent for their benefit. I agree with the attorney generals office, ” it is important to provide transparency “. It is especially important when the price of gas at the pump is killing the citizens of this country, and not a single politician does anything but talk about it. Could it be that the reason no politician does anything about it is because they are afraid they would jeopardize their compensation package from the lobyists?
The “boys” want disclosure on compensation – then you first. Let’s see the salaries, bonuses and financial records on all of those who “work” at both the ins department and the ag’s office. They are being paid by tax dollars, and the taxpayers want to know.
The ins dept and the ag’s office are off the reservation – bureaucrats acting as legislators.
Stop wasting everyone’s time and dollars. Hey Patterson, you want to cut the cost of government – look at all of those at the ins department and the AG’s office who seem to have too much spare time. Government waste at its best.
AGENTS PRIMARY CONCERN IS TO PROVIDE OUR CLIENT WITH THE BEST COVERAGE AT THE LOWEST POSSIBLE COST. WHEN WE DO THIS, WE ALL BENEFIT. OUR CLIENT ENDS UP WITH THE BEST PROTECTION FOR HIS OR HER ASSETS, AND WE AS AGENTS, ARE COMPENSATED WITH COMMISSION. IF THIS RESULTS IN PLACING A LARGER VOLUME OF PROFITABLE BUSINESS WITH A COMPANY, WE SHARE IN THE PROFITS.
WHAT INDUSTRY DOES NOT COMPENSATE A SALESMAN FOR DOING A GOOD JOB, AND BECOMING A TOP SALESMAN IN HIS BUSINESS?
when is the government going to look into the auto industry which sells “below sticker price”? what kind of contingent commission do the auto dealers get?
They make the claim take at least twice as long to settle, get the insured pretty much exactly what the company was going to offer in the beginning, and take 30% of the settlement.
The jokes on you. The law limits a PA’s fee to 12.5%. The claim may take longer to settle because a good PA makes the company’s claim personnel or “independent adjuster (what an oxymoronic term that is!)work. My experience is that a good PA gets an insured somewhere between 20-40% more than what the adjuster initially offer. In effect the carrier pays the PA’s fee. Carriers and brokers don’t like PA’s because they create a fair playing field. Speaking of contingent fees and associated abuses, how come agents and brokers discouirage the use of PA’s?
Cato,
Your free advertising about PA services is really pertinent to the contingent commission discussion. Take it somewhere else and tell somebody who cares. I’m all misty-eyed after reading how great PA’s are.
I must say that in 33 years in the agency bsuiness, I have only come across a small handful (I can count them on the fingers of one hand) of PAs who were good, honest, did their jobs well, and gave their client’s their money’s worth.
Don’t get me wrong. There ARE some good ones, but they seem to be a tiny minority. Most of them seem to be one step below pond scum on the evolutionary scale.
Dinallo and Cuomo forget that they already signed off on supplemental commissions? And, with respect to contingent commissions, they probably have not statutory authority to act — and IIABNY and LICONY will probably challenge any regulation they try to adopt without such authority. So, let the boys hold their hearing, collect the information, and then let the issue die its inevitable death.
So I guess the next issue will be should all companies pay equal compensation regardless of work ethic.
Of course, the first thing I learned when I entered this business is “Screw the client! look for the policy that pays the best commission.” Only lawyers(AG & Commissioner) would think everyone is only motivated to do the selfish thing.
I guess they never worked in the competitive marketplace where doing the right thing for your client is what makes you money.
Silly, old naive me.
This is so transparantly political that it also transparantly stupid.
There are several dozen industries where contingencies/bonuses are paid for sales and productions.
Yet name even one other industry where a public hearing has been proposed for the public to weigh in on it.
Good grief, but we’re headed for trouble in this country.
If the AG and Insurance Department really wanted to do something for the insurer, they’d require that upon a loss each carrier and agent or broker notify them of their right to a PA. Reality is reality. Aconsumer could care less who makes money off the premium as long as the premium remains the same. The carrier and the agent or broker don’t want PA’s because they make sure the insured gets what he paid for – a realistic settlement, not the low ball figure the carrier offers.
What’s up with Dinallo and Cuomo? A public hearing? You were both wrong and LOUD WRONG! Spitzer and Dinallo both made this big bruhaha over contingent commissions and they were wrong. Accept defeat gracefully.
I think its a good idea to hold public hearings on insurance agent commisions. I also think its important to hold public hearings on how elected and appointed officials are compensated by lobyist groups. I particularly would like to have an independant organization investigate how many times politicians speak to lobyists, what was discussed at those meetings, and how much lobyist money directly or indirectly flows into the pockets of our politicians or is spent for their benefit. I agree with the attorney generals office, ” it is important to provide transparency “. It is especially important when the price of gas at the pump is killing the citizens of this country, and not a single politician does anything but talk about it. Could it be that the reason no politician does anything about it is because they are afraid they would jeopardize their compensation package from the lobyists?
The “boys” want disclosure on compensation – then you first. Let’s see the salaries, bonuses and financial records on all of those who “work” at both the ins department and the ag’s office. They are being paid by tax dollars, and the taxpayers want to know.
The ins dept and the ag’s office are off the reservation – bureaucrats acting as legislators.
Stop wasting everyone’s time and dollars. Hey Patterson, you want to cut the cost of government – look at all of those at the ins department and the AG’s office who seem to have too much spare time. Government waste at its best.
AGENTS PRIMARY CONCERN IS TO PROVIDE OUR CLIENT WITH THE BEST COVERAGE AT THE LOWEST POSSIBLE COST. WHEN WE DO THIS, WE ALL BENEFIT. OUR CLIENT ENDS UP WITH THE BEST PROTECTION FOR HIS OR HER ASSETS, AND WE AS AGENTS, ARE COMPENSATED WITH COMMISSION. IF THIS RESULTS IN PLACING A LARGER VOLUME OF PROFITABLE BUSINESS WITH A COMPANY, WE SHARE IN THE PROFITS.
WHAT INDUSTRY DOES NOT COMPENSATE A SALESMAN FOR DOING A GOOD JOB, AND BECOMING A TOP SALESMAN IN HIS BUSINESS?
when is the government going to look into the auto industry which sells “below sticker price”? what kind of contingent commission do the auto dealers get?
How about the lawyers? When is someone going to look into their contingency fees and high hourly rates and…sorry, must have been daydreaming.
Lawyers will NEVER post a disclosure of all their fees. Will they?
Yes, PA’s are a joke.
They make the claim take at least twice as long to settle, get the insured pretty much exactly what the company was going to offer in the beginning, and take 30% of the settlement.
The jokes on you. The law limits a PA’s fee to 12.5%. The claim may take longer to settle because a good PA makes the company’s claim personnel or “independent adjuster (what an oxymoronic term that is!)work. My experience is that a good PA gets an insured somewhere between 20-40% more than what the adjuster initially offer. In effect the carrier pays the PA’s fee. Carriers and brokers don’t like PA’s because they create a fair playing field. Speaking of contingent fees and associated abuses, how come agents and brokers discouirage the use of PA’s?
Cato,
Your free advertising about PA services is really pertinent to the contingent commission discussion. Take it somewhere else and tell somebody who cares. I’m all misty-eyed after reading how great PA’s are.
Is there term “good PA” an oxymoron?
I must say that in 33 years in the agency bsuiness, I have only come across a small handful (I can count them on the fingers of one hand) of PAs who were good, honest, did their jobs well, and gave their client’s their money’s worth.
Don’t get me wrong. There ARE some good ones, but they seem to be a tiny minority. Most of them seem to be one step below pond scum on the evolutionary scale.