Agents group attacks fee deal
Insurance agents in the US are protesting against planned settlements between state attorneys-general and a collection of insurers. The settlements come after months of mediation over allegations of bid-rigging among the insurers and their agents.
Under the terms of the standard agreement, agents of the insurers will no longer be able to accept contingency payments. That’s something that has the National Association of Professional Insurance Agents in a spin.
The association has filed an “amicus curiae” challenge in the US District Court, saying the settlements impose their provisions on all intermediaries despite relatively few being involved in the original disputes.
Amicus curiae (friend of the court) writs allow third parties not involved in a litigation to offer their opinion and advice on a decision.
The association says the multi-state settlements, as well as reducing the legitimate incomes of many of its members, will introduce legal conflict and confusion into the insurance-buying process.
There are also concerns the deals will discriminate in favour of insurance brokers, who are still able to accept contingency payments.