The bad in this is bid rigging. Bid rigging municipal business gets you Martha Stuart Living.
The contingent commisions will not go away as not illegal. If Spitzer thinks they are then I have a new model for the brokers.
I guess this would be much more ethical(sic) way of transacting business that Spitzer etal would understand.
Brokers advise all customers they will work on account for 1/3 of the premium and only receive commission if the broker places the account. Broker will only work on your account if they are assured they have an excelent chance of writing the account otherwise will request you pay them $100-$500 per hour for their preparation. Also, you will sign them as exclusive representative and pay a retainer.
All insurance companies should be represented by their own set of brokers (paid at $100-$500 per hour based upon expertise) to negotiate with customer brokers.
A much more ethical transaction would occur.
The cost of insurance would more than double but we could all sleep better knowing the insurance industry is operating ethically by Spitzer standards.
Those who can’t afford a broker will have the right to have one appointed for them by the insurance commissioner before being allowed to complete an application for insurance.
If they give up that right, anything they do or say in the application process can and will be held against them if a declatory action is later filed.
The cost of these commissioner appointed brokers would be paid by fees assessed against the carriers and “for profit” brokers, thus increasing their cost of doing business. Theses increased costs will, of course, be passed along to the insurance consumer.
Will premiums go down? Doubt it.
Will hard to place risks pay higher premiums, or lose coverage altogether, because their broker doesn’t have the clout any more to get them underwritten? Probably.
Will regulatory paperwork go up, also increasing costs ultimately paid by the consumer? You betcha!
The bad in this is bid rigging. Bid rigging municipal business gets you Martha Stuart Living.
The contingent commisions will not go away as not illegal. If Spitzer thinks they are then I have a new model for the brokers.
I guess this would be much more ethical(sic) way of transacting business that Spitzer etal would understand.
Brokers advise all customers they will work on account for 1/3 of the premium and only receive commission if the broker places the account. Broker will only work on your account if they are assured they have an excelent chance of writing the account otherwise will request you pay them $100-$500 per hour for their preparation. Also, you will sign them as exclusive representative and pay a retainer.
All insurance companies should be represented by their own set of brokers (paid at $100-$500 per hour based upon expertise) to negotiate with customer brokers.
A much more ethical transaction would occur.
The cost of insurance would more than double but we could all sleep better knowing the insurance industry is operating ethically by Spitzer standards.
Your new business model doesn’t go far enough.
Those who can’t afford a broker will have the right to have one appointed for them by the insurance commissioner before being allowed to complete an application for insurance.
If they give up that right, anything they do or say in the application process can and will be held against them if a declatory action is later filed.
The cost of these commissioner appointed brokers would be paid by fees assessed against the carriers and “for profit” brokers, thus increasing their cost of doing business. Theses increased costs will, of course, be passed along to the insurance consumer.
Will premiums go down? Doubt it.
Will hard to place risks pay higher premiums, or lose coverage altogether, because their broker doesn’t have the clout any more to get them underwritten? Probably.
Will regulatory paperwork go up, also increasing costs ultimately paid by the consumer? You betcha!