Congress To Review Results Of Spitzer Probe

Preliminary plans call for Deirdre Manna, acting Illinois insurance commissioner, to represent the National Association of Insurance Commissioners, Kansas City, Mo. Manna is a member of the working group established by the NAIC to look into the broker fee controversy. The controversy was triggered by subpoenas issued by Spitzer in April. The subpoenas called into question the legality of incentive fees paid by insurers to brokers, who are paid to represent companies to secure insurance for their businesses.

Attorney generals who might appear could include Spitzer, John Garamendi of California and Richard Blumenthal of Connecticut.

Trade groups on the invitation list include the Property Casualty Insurers Association of America, Des Plaines, Ill., and the Council of Insurance Agents and Brokers, Washington.

Some of the other invitees are Robert Hunter, director of insurance at the Consumer Federation of America, Washington, and Alan Reynolds, a fellow at the Cato Institute, Washington.

Reynolds was the author of a recent op-ed article in The Wall Street Journal that called the results of Spitzer's investigation a "non-scandal." Reynolds also argues in his article that, in the long run, changing the current broker compensation system will raise the fees companies pay to purchase insurance.