Acordia Inc., an insurance brokerage owned by Wells Fargo & Co., said it will vigorously defend against allegations brought by the attorneys’ general of New York, Connecticut and Illinois.
“Contingent compensation agreements have been a long-standing and well-known practice in the insurance industry, and these commissions continue to be paid by insurers to hundreds of insurance agents and brokers throughout the country, including New York,” said Dave Zuercher, Acordia Inc. president and CEO. “These agreements have been held by courts to be legal and enforceable.”
Acordia discloses its contingent compensation agreements to its customers in a manner consistent with guidelines approved by the National Association of Insurance Commissioners, the company release said.
“Acordia is confident that contingent compensation agreements, properly administered, are consistent with the responsibility of its brokers to its customer,” said Zuercher.
Acordia Inc. is a bank-owned insurance brokerage in the U.S. with over 150 offices in 38 states. Wells Fargo & Co. is a diversified financial services company.
Source: Acordia, Inc.
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