Acordia Inc. Disputes Attorneys’ General Charges
San Francisco — December 19, 2006
Acordia Inc., the fifth largest insurance brokerage in the nation and owned by Wells Fargo & Company (NYSE:WFC), said it will vigorously defend against allegations brought by the attorneys’ general of New York, Connecticut and Illinois.
“Contingent compensation agreements have been a long-standing and well-known practice in the insurance industry, and these commissions continue to be paid by insurers to hundreds of insurance agents and brokers throughout the country, including New York,” said Dave Zuercher, Acordia Inc. President and CEO. “These agreements have been held by courts to be legal and enforceable.” Acordia discloses its contingent compensation agreements to its customers in a manner consistent with guidelines approved by the National Association of Insurance Commissioners. “Acordia is confident that contingent compensation agreements, properly administered, are consistent with the responsibility of its brokers to its customer,” said Zuercher. Acordia Inc. is the largest bank-owned insurance brokerage in the U.S., with over 150 offices in 38 states. Its 4,500 insurance professionals place in excess of $8.5 billion of risk premiums with expertise in property, casualty, benefits, international, personal lines and life products. Wells Fargo & Company is a diversified financial services company with $483 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,100 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest possible credit rating, “Aaa,” from Moody’s Investors Service and the highest credit rating given to a U.S. bank, “AA+,” from Standard & Poor’s Ratings Services.