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Spitzer says insurance broker fees fueled ‘improper practices’

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Eliot Spitzer, the former New York attorney general whose 2005 curbs on insurance-broker compensation were reversed by regulators this week, said the fees that he banned “created inherent conflicts.”

Brokers Marsh & McLennan Cos., Aon Corp. and Willis Group Holdings Plc won approval to again accept so-called contingent commissions from insurers, removing the Spitzer-era ban on the fees paid in placing policies, the New York Insurance Department said on Feb. 16. The middlemen are already paid by insurance buyers.

Full story: Spitzer Says Insurance Broker Fees Fueled ‘Improper Practices’ via  Bloomberg.com