Brooks: Isn't there a conflict when you present proposals from companies that pay profit sharing but not proposals from companies that don't? Gelia: I will always present the most competitive quotes. Brooks: That's not responsive. Gelia: When we are selecting quotes, profit sharing doesn't enter our minds.
The panel is really grilling Dave on the perception issue. Brooks asked if it's not a potential conflict that a company may terminate him if he doesn't put more business with them. Easton: What if a carrier's claims paying practices are poor? Would you still put business with them if they pay you profit sharing? Gelia: We won't even quote those companies. Easton: Is it possible some brokers may not be as ethical as you? Gelia: I can only speak for myself. Marketplace will punish brokers who do not put clients' interests first. Easton: Is your opinion representative of the independent agency community? Gelia: I believe it is.
Easton: Would mandatory disclosure hurt your bottom line? Gelia: No, if not unduly burdensome. Easton: What is burdensome? One form? Gelia: One form is not a problem. A pile of forms from the company get disregarded.
Gold: Why do carriers pay contiengents, especially volume-based? Gelia: I call it profit-sharing. Purpose is to encourage upfront underwriting.
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