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Regulation - Legal - WLF calls for insurer broker probe.
(From Reinsurance)
The Washington Legal Foundation (WLF) has called on the attorney generals and insurance departments of New York and California to investigate "potentially damaging" practices being engaged in by some in the insurance brokerage industry.
The WLF, which is a public interest law and policy centre, said that it wanted the states to look into possible conflicts of interest caused by placement service agreements (PSAs) and leveraging in the insurance brokerage industry.
It claims that PSAs encourage brokers to steer customers towards insurers that will profit the broker but not necessarily the customer. As a result customers run the risk of paying more for coverage they do not need and receiving less in ...
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