The insurance industry was in shock after N.Y. Attorney General Eliot Spitzer dropped his bomb by filing a lawsuit in October against Marsh & McLennan. Spitzer charged the New York-based insurance brokerage firm-one of the largest in the country-with receiving payoffs from carriers for steering commercial business their way, rigging fake bids, and cheating corporate customers out of receiving advice in their best interest.Marsh and others in the industry have since suspended contingent commissions-the questionable payment structure at the heart of Spitzer's case. But no one can say for certain how broker compensation will change as a result of the investigations, which now include other brokerage firms and commercial and health carriers.
Whatever happens, industry sources agree, two words currently stand out in discussions on the topic: disclosure and transparency.
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