September 29, 2006 by Canadian Underwriter
Ten state Attorneys General recently filed a motion with the U.S. District Court for New Jersey opposing the National Association of Professional Insurance Agents’ (PIA)’ position regarding the proposed class action settlement against Zurich American Insurance Co, which alleges improper broker compensation practices.
The Attorneys General of the States of California, Florida, Hawaii, Maryland, Oregon, Texas and West Virginia and the Commonwealths of Massachusetts, Pennsylvania and Virginia contend that the of PIA’s amicus brief filed Sept. 15 is premature at this stage of the litigation. “(The) PIA’s concerns are more properly reserved for the final fairness hearing not preliminary approval.”
The Attorney’s General also claim the associations objections “have little to do with the reasonableness of the Settlement, and focus instead on the scope and proper interpretation of the
The amicus brief opposed certain aspects of the proposed class settlement with Zurich Insurers. Specifically the brief objects to the “selective ban on the payment of contingent commissions and the mandated use of a flawed disclosure statement that creates legal conflicts.”
In a press release PIA CEO Len Brevik said relegating the concerns of professional insurance agents to a late-stage, final fairness hearing is not fair.
“Since there hasn’t been fairness for agents since the beginning of this process, we are not confident that there will be now,” Brevik said.