Broker Kickbacks: Contingent Commissions all over again.

Implications: Fiduciary responsibilities apply to many facets of all businesses.Transparency has become a greater focus for our legal system.

Analysis: What used to be a more or less accepted practice in the insurance industry is being microscoped more & more.  It is somewhat reminiscent of contingent commissions.  Traded compensation for steered business. Many have always thought it was the quid pro quo of doing business.  You send me something and I'll give you some form of compensation in return.  While that generally may not be illegal, it is when it violates ethical standards or a fiduciary responsibility.  It somewhat begins to place form over substance. Pure profit can no longer be the primary concept of a transaction.  It goes back to the musketeers motto of all for one and one for all.  Companies must take into consideration what is best for stockholders or other pertinent parties. The fiduciary part of this transaction has long been diluted, but needs to be fully explored.  http://www.dol.gov/ebsa/publications/fiduciaryresponsibility.html    Connecticut is certainly not the first State to go after insurance brokers for kickbacks nor should, or will, they be the last. Many companies have been flying under the radar partially do to investigation resources and time.  Since the sting of 911, Enron, Worldcom and other similar tragic events transparency in business dealings is becoming more and more of a focus.  The concept of what is in essence steering with remuneration will continue to be a focus of many future investigations.