Despite controversy, risk managers stay with brokers.One year after New York state Attorney General The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York. Eliot Spitzer Eliot Laurence Spitzer (born June 10 1959 ) is an American lawyer, politician and the current Governor of New York. Spitzer was elected governor in the November 2006 election. started legal action against Marsh Inc., most risk managers say they've not changed their broker, but have become more active in the insurance buying process. In a survey of 540 risk managers, 87% said they had not made material changes in their broker relationship based on the information disclosed during the broker investigations, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a survey by Advisen Ltd. Less than 10% said they'd spread business among more brokers and/or moved business from Marsh or Aon. "One thing that I was particularly surprised at was the complete turnaround in attitude of risk managers toward the disclosure issue," said David Bradford David Bradford is the name of:
Advisen said a stunning 85% said they agree with the statement: "My firm's broker adequately discloses all compensation received in the placement of my firm's insurance programs." Only 7% disagreed, and 8% said they didn't know. "Brokers are clearly doing something right," Bradford said. "They've made a strong effort to improve disclosure." Just over 90% rated the value contributed by their broker as "adequate" or "very adequate." Although 32% said they intend to initiate a broker selection process to replace their firm's current broker or are undecided about making a change in their current broker, in the next 18 months. Several said they issue requests for proposals every few years even if they are satisfied with their broker's performance. In the past year, Spitzer reached an $850 million civil settlement with Marsh, a $190 million policy restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the agreement with Aon, and a $50 million settlement with Willis North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. over a series of allegations concerning 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 other issues. Arthur J. Gallagher reached a $27 million settlement with the Illinois attorney general The Illinois Attorney General is the highest legal officer of the state of Illinois in the United States. Originally an appointed office, it is now an office filled by election through universal suffrage. , and Hilb, Rogal & Hobbs reached a $30 million settlement with the Connecticut attorney general concerning compensation practices. Also, Marsh, Aon, Willis and Arthur J. Gallagher announced that they would no longer enter into contingent commission arrangements with insurers. Risk Managers Satisfied How risk managers responded to the statement: My firm's broker adequately discloses all compensation received in the placement of my firm's insurance program: |
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