The Independent Insurance Agents of Oklahoma (IIAO), the state’s largest insurance and property casualty agents association, has joined other agent groups in denouncing recent assaults on compensation agreements between independent agents and their represented companies, the association reported.
Some national insurance companies and brokers are seeking to end compensation agreements with independent agents in certain states following allegations by federal authorities of bid rigging.
A recent settlement agreement reached by St. Paul Travelers follows in the wake of similar agreements by American International Group and Zurich, which will potentially place an end to incentive compensation agreements between independent agents and companies they represent for the production of profitable business.
“These agreements reflect an assault on legal compensation arrangements used in all types of sales organizations across the United States,” Bruce Magill, IIAO chairman said. “Independent agents in Oklahoma and nationwide are the most negatively impacted by these agreements between insurance companies and state attorney generals for New York, Connecticut, and Illinois, yet have had absolutely no say in negotiations. It is unfair and discriminatory to disallow incentive compensation for insurance agents when such arrangements are common with almost every other form of sales organization in the U.S. To penalize all insurance agents is unfair and unreasonable.
Source: Independent Insurance Agents of Oklahoma
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