You are here:HomeNews CenterInsurance News2006Marsh Can Now Accept Contingent Compensation as MGA

Marsh Can Now Accept Contingent Compensation as MGA

Marsh Inc. may now accept contingent commissions on business where it acts as a managing general agent or underwriting manager, under an agreement reached with...
August 30, 2006

Marsh Inc. may now accept contingent commissions on business where it acts as a managing general agent or underwriting manager, under an agreement reached with New York Attorney General Eliot Spitzer and New York Superintendent of Insurance Howard Mills on August 17.

The new pact modifies the January 2005 agreement that banned all contingent commissions or profit sharing deals involving payments based on the volume of business Marsh placed with various insurers. The latest agreement clarifies that Marsh may be compensated as an MGA or underwriting manager, defining such activities as those where Marsh has been appointed by an insurer to be the insurer's representative in connection with the management of its book of business. Other brokers under similar constraints hope for similar deals.

Marsh Gets OK for MGA Contingent Fees (Business Insurance 8/23/06)

Marsh Given OK for Contingent Pay When Serving As MGA (Insurance Journal 8/25/06)

Filed under: