Insurer Agrees To Halt Contingent Commissions

Law360, New York (January 3, 2007, 12:00 AM EST) -- The St. Paul Travelers Companies Inc. has agreed to stop paying contingent commissions to insurance agents and brokers, according to Connecticut Attorney General Richard Blumenthal, who has been fighting the illegal bid-rigging practice.

Blumenthal said Tuesday that St. Paul Travelers had sent him a letter saying all agents would soon be switched to a fixed commission program. Several insurance business lines will stop contingent commissions immediately, the letter said, while others will faze them out by Jan. 1, 2008.

“St. Paul Travelers is doing the right...
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