Spitzer Reins In Insurance Companies

Law360, New York (December 1, 2006, 12:00 AM EST) -- New York state’s Attorney General has notified four insurance companies that the markets for several types of insurance have passed a “tipping point” at which the companies are bound by prior settlements to stop paying contingent commissions to insurance brokers.

Contingent commissions are fees an insurance company pays to insurance brokers and agents for bringing the company business. These commissions raised eyebrows in the Attorney General’s office because they force brokers to juggle their desire to rake in commissions with their fiduciary obligation to find the...
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