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Article: Placement Service Agreements are just "not an issue": a broker's close relationship with a carrier adds value for the buyer of commercial insurance.(Counterpoint: Council of Insurance Agents & Brokers)
- Article from:
- Risk & Insurance
- Article date:
- August 1, 2004
CopyrightCOPYRIGHT 2004 Axon Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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New York Attorney General Eliot Spitzer has issued subpoenas to several leading insurance brokers relating to Placement Service Agreements. The agreements between commercial insurance brokers and the insurance carriers with which they do business are not an issue of concern in the industry.
PSAs are paid to brokers by carriers based on their overall relationship and the services provided by the broker for the carrier. PSAs are not linked to placement of a specific policy. It is the industry standard to disclose these arrangements to commercial customers.
Customers are entitled to whatever information they need about the arrangements to make an informed ...