April's Best's Review Examines Conflict Among Brokers and Agents Over Contingent Commissions.OLDWICK, N.J. -- In the wake of accusations and investigations, the largest insurance brokerages have ceased accepting contingent commissions--commissions based on the eventual performance of the subject that was insured. But many mid-sized and smaller brokers, and independent insurance agents, believe the practice has been wrongly categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat , and they're now becoming victims of their larger competitors' rush to avoid scrutiny. In a "House Divided," mid-size and smaller brokers defend their right to collect contingent commissions Contingent commissions is a term used in the American insurance industry for any kind of broker's commission which is contingent upon some event occurring (instead of a commission paid on the sale itself). In the UK this form of payment is known as Overriders. and explain how this type of compensation is misunderstood mis·un·der·stood v. Past tense and past participle of misunderstand. adj. 1. Incorrectly understood or interpreted. 2. . The time-honored way of conducting insurance business has also changed. The debate over contingent commissions has resulted in a re-examination RE-EXAMINATION. A second examination of a thing. A witness maybe reexamined, in a trial at law, in the discretion of the court, and this is seldom refused. In equity, it is a general rule that there can be no reexamination of a witness, after he has once signed his name to the deposition, of the way insurance buyers, brokers and carriers do business and how they are creating new measurements to price it. Other highlights of the April issue include: * Best's Review's exclusive list of Insurance Recruiters. * How to sell insurance to women. * What software technologies are helping insurers become compliant with state and federal regulations. Best's Review is published by the A.M. Best Co. for insurance professionals, including home office executives, agents, brokers and others affiliated with the industry, such as bankers, lawyers and educators. To read these articles and more, subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; Best's Review by visiting our Web site at www.bestreview.com/subscribe, calling the A.M. Best customer service department at (908) 439-2200, ext. 5742, or e-mailing your request to customer_service@ambest.com. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including the banking and insurance sectors. For more information, visit www.ambest.com. |
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