Posts Tagged ‘insurance practices’

Lawsuit claims insurance broker getting kickbacks

November 25, 2008

Mesirow Insurance Brokers didn’t disclose its financial arrangement with an insurance carrier when it sold a policy to the plaintiff according to this lawsuit filed in Cook County court. 

The complaint is also a useful guide about the workings of the insurance industry, explaining the role of brokers and carriers and also how there is considerable pressure brought by the carriers on the brokers, (called “producers” under Illinois law) to sell their policies.  While the broker has a special obligation to the consumer or the company purchasing the policy to provide them the best coverage and price, the carriers are very interested in seeing that the brokers sell their policies.  The complaint also goes into some detail about the breakdown of revenue for the defendant, Mesirow Insurance Services.  Don’t neglect litigation as a valuable source for competitive intelligence.

Complaint courtesy Courthousenews