An insurer's agreement with California's insurance commissioner to settle charges that the carrier collected excessive fees is being challenged by an agents group that says the settlement sets an illegal definition of agents and brokers.
The Insurance Brokers & Agents of the West said it has filed a petition with the California Office of Administrative Law asking the agency to declare that Commissioner John Garamendi acted illegally by attempting to create a precedent setting agreement with American Reliable.
IBA West said it asks the settlement be set aside. The association, in the petition, contends Mr. Garamendi violated state codes when he entered into a settlement with the insurer and put language into the settlement that makes it a precedent setting decision.
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