Agent/Broker Contingency Commissions

Mr. Underdown's unpublished opinion on contingency commissions is that there is nothing inherently wrong with contingency commissions as long as they are adequately disclosed to the client/insured. There are times when it may definitely be beneficial to the prospective insured, because an agent or broker who places a substantial amount of business with one insurance company may receive preferential pricing. The only question then is whether or not the contingency agreement is disclosed to the prospective insured.