Debra Korta, legislative program manager for Connecticut's insurance department, speaking for Ms. Cogswell, said the commissioner's remarks about the issue were made at the Independent Insurance Agents of Connecticut's annual meeting in Southington, Conn.

"She conveyed a concern that they could anticipate Connecticut legislation in light of the [brokerage and insurer] settlement agreements she had read," said Ms. Korta.

State investigations nationwide of insurers and brokers have led to charges of bid rigging and steering of commercial insurance customers in exchange for undisclosed fees and commissions. Companies, as part of settlements to end the inquiries, have agreed to halt the payment of contingent commissions and support legislation to outlaw them.

Ms. Korta said the department was not drafting any legislation, but that Ms. Cogswell was anticipating "what might occur in the [Connecticut] legislature."

Inquiries to the Connecticut House and Senate insurance committees concerning action on such legislation drew no immediate response.

Commissioner Cogswell's comments touched off expressions of concern and anger by an independent agents group in California. Her remarks were "a shot heard across the country," said the Western Insurance Agents Association in Sacramento.

"We warned the insurance carriers who were engaged in settlement discussions with attorneys general in various states not to force law-abiding agents and brokers to pay for their sins and the sins of large Wall Street brokers," said Michael D'Arelli, vice president of legislative and regulatory affairs for WIAA.

He noted that the insurers St. Paul Travelers, American International Group, Zurich America and Ace Ltd. had entered into settlement agreements with various attorneys general, which require them to work with legislatures and regulators to abolish contingent compensation.

The state of Connecticut is one of the states that settled with some of the insurers, "so it is no surprise that rumors of legislation are circulating there," WIAA announced.

Mr. D'Arelli said his group had warned insurance carriers "that their settlement agreements were tantamount to throwing their own agents and brokers under the bus, but we similarly warned the large Wall Street brokers who had the audacity to question the legitimacy of contingent compensation arrangements."

He commented that for the past couple of years, "WIAA has voiced its concern that insurance companies and Wall Street brokers were more concerned with saving their own skin through settlement agreements than protecting the legitimate use of profit sharing and contingent compensation arrangements."

"Reports of coming legislation to abolish contingent compensation should remind agents and brokers on Main Street to continue to play by the rules, to not break the law, and to always do the right thing for the client," WIAA said.

"The bad behavior of a few bad apples doesn't mean we're all rotten to the core. WIAA will join other independent agent and broker trade associations to continue to protect the legitimate use of profit sharing and contingent compensation arrangements," said Mr. D'Arelli.