PIANY past President John Bailey will reiterate the association’s long-standing position that contingent commissions are legal, effective compensation for producers that benefit New York state’s consumers and economy: “Contingent commissions are a fair and proven business practice; they recognize and reward careful underwriting by agents, which ultimately keeps down premiums for customers throughout the state.”
Bailey also will remind the panel that Main Street independent agents work in an extremely competitive market: “The high level of competition inherent in the insurance marketplace requires that agents act in only the best interests of the consumer. There simply is no innate advantage in trying to place business in anything but the most appropriate and competitive market.”
Bailey will stress the fact that contingent commissions, paid by insurance companies to retail independent insurance agents, are not the same as “placement service accounts,” which were used by certain mega-brokers to manipulate the insurance marketplace to the detriment of consumers. He will argue that honest retail independent insurance should not be penalized for the illegal acts of those who now seek to change the market in their favor.
A third hearing is scheduled to take place July 25 in New York.
About PIANY
PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.