Brooks asked how the witness selects the company to offer to the customer. Witness listed numerous factors.
Berlin: Don't you think customers should know about the trips, gifts, office allowances, etc.? Don't you think the client might find it relevant? Witness: No. Has nothing to do with the overall cost of the policy. Focusing on how producers are compensated will taint the purchasing decision and distort it. When you get off on tangents, it's difficult to stop. This isn't the same thing as what happened with Marsh.
Berlin: We don't have a predetermined agenda. We're trying to gather facts.
Berlin: Why do you think carriers pay you all these things if not to influence the sales decision? Witness: I'm sure that's why they do it, but the producer must focus on the total cost to the client. If there is a regulatory focus, it should be on the carriers.
Brooks: What burdens would you place on carriers? Witness: Less 1st year commission, more for subsequent years. Would encourage agents to provide better service after 1st year.
Discussion is devolving into reform of life insurance commission system.