The debate over whether the major brokerages should be allowed to earn contingency fees for delivering a certain volume or quality of business to carriers raged anew this year after Illinois eased restrictions over the practice.
As of Oct. 1, with the blessing of Illinois Attorney General Lisa Madigan, Arthur J. Gallagher was once again allowed to accept contingent commissions after an almost four-year ban imposed by Ms. Madigan and New York's attorney general at the time, Eliot Spitzer, following a kickback scheme uncovered at Marsh & McLennan Companies.
In September, when the Itasca, Ill.-based broker's Chair, President and CEO Patrick J. Gallagher Jr. made the announcement about the ban being lifted, executives from Marsh (the brokerage subsidiary of MMC) and Chicago-based Aon applauded the decision, and rumors began to swirl they were in talks with New York's Attorney General's Office to lift the ban on contingents for them as well.
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