Nearly a year has passed since New York Attorney General Eliot Spitzer charged insurance brokerage firm Marsh & McLennan with rigging bids to maximize its commissions with insurance carriers.Allegations against Aon, AIG, ACE and other brokers and insurers followed-and within weeks, the country's largest insurance brokers-Marsh, Aon and Arthur J. Gallagher-as well as AIG and ACE had ceased the practice of accepting (or paying) contingent commissions.
More recently, the National Association of Insurance Commissioners (NAIC), Kansas City, Mo., adopted amendments to its Producer Licensing Model Act, calling for producers who do continue to accept contingency fees from carriers-and who are also paid by their clients-to disclose those fees to their clients and document proof of that disclosure (see "NAIC amends the Producer Licensing Model Act," below).
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