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Eliot Spitzer, the New York Attorney General, has spear headed investigations into several companies where contingent commissions and bid-rigging were used to gain business for certain companies. The insurance companies would give the brokers, such as Marsh & McLennan, a kickback in the form of contingent commissions for placing business with them. Marsh & McLennan was also found to bid rig premium quotes in which they would submit inflated competing quotes so as to place insurance with their favored carrier meeting their quotas to qualify for the contingent commissions. This practice harms the customer as they wind up paying a higher premium for their policy than is necessary...
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