New York Attorney General Eliot Spitzer announced today that his office has notified four major insurance companies they can no longer pay controversial contingent commissions to agents and brokers that sell automobile, homeowners and two other insurance products.

His action–a byproduct of settlement agreements insurers made earlier with New York, Connecticut and Illinois to resolve bid-rigging charges–was denounced by agent groups as a “backdoor” move that circumvented legislative process and penalized small producers.

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