October 21, 2004

CA Regs on Broker "Incentive Commissions"

California's insurance commissioner has proposed new regulations to require agents and brokers to disclose any financial incentive they would receive for selling certain insurance products and steering business to specific companies. A press release by Commissioner Garamendi reports he ordered the regs drafted in March, after criticism of incentive commissions surfaced.

The practice came to national attention recently due to legal action taken by New York Attorney General Eliot Spitzer, focused on Marsh & McLennan and several leading insurers, alleging conflicts of interest and bid-rigging in violation of state antitrust laws.

Insurance Commissioner John Garamendi Unveils Regulatory Proposal to Protect Consumers from Undisclosed Agent/Broker Commissions

Posted by dougsimpson at October 21, 2004 06:58 AM | TrackBack