Byline: SALLY ROBERTS
NEW YORK-Parts of American International Group Inc.'s $1.64 billion settlement agreement with state and federal regulators relating to contingent commissions-and a pledge by AIG to stop paying such incentives-are fueling more debate over the future of the controversial practice.
As part of the settlement, AIG agreed to sharply curtail its use of contingent commissions, including no longer paying contingents on excess casualty coverage through 2008 and ceasing to use such incentives for any line of business if insurers representing 65% of the gross written premiums on that line do not pay such commissions. In addition, AIG agreed to "support legislation and regulations to abolish …
No comments:
Post a Comment