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Probe Touches Web Broker

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NU Online News Service, Nov. 12, 2004, 5:15 p.m. EST Inc., Darien, Ill., says it belongs to the rapidly growing ranks of insurance sales organizations that have received a subpoena regarding compensation arrangements.[@@]

Quotesmith, a pioneer in the Web-based insurance brokerage business, notes that it received a compensation subpoena from the Illinois Division of Insurance even though it offers quotes even from insurers that refuse to pay it any commissions at all.

“Given the apparent widening of this regulatory probe within the insurance brokerage sector, combined with the fact that we are regulated by the insurance departments of every state, our shareholders and employees should be advised that we expect to receive additional subpoenas and information requests of this nature going forward,” Quotesmith Chairman Robert Bland says in a statement about the Illinois subpoena. “We intend to respond fully and completely to such information requests going forward by any regulator or government entity.”