San Diego-based Driver Alliant Insurance Services Inc., along with its parent company, Alliant Resources Group Inc., announced that they will be eliminating their contingent income agreements with insurance carriers. Alliant is one of the largest U.S. insurance brokerage and financial services distribution companies, with Driver Alliant serving as its west coast operation.
In taking this action, John Addeo, president and CEO of Alliant said, “the interests of our clients come first and the possible perception that contingent commission agreements create a conflict of interest must be eliminated.”
“Because our highest priority is the trust, confidence and satisfaction of our clients, we are no longer entering into or renewing contingent income agreements,” said Thomas Corbett, Chairman and CEO of Driver Alliant. “Our decision to end contingent income agreements definitively responds to the growing concern and confusion surrounding such arrangements.”
Addeo further noted that, “While we believe that we have conducted our business in conformity with all applicable insurance laws and regulations, Alliant has commenced an internal review of marketing practices and compensation arrangements with insurance carriers as well as internal placement procedures to insure that the interests of our clients are paramount and that our practices reflect this commitment.”
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