California's insurance commissioner John Garamendi is preparing to unleash sweeping regulation changes to the state's insurance and broker industry.
He announced yesterday every broker and agent in the state would be prohibited from steering business from favoured insurers in exchange for higher commissions.
Breaking the stringent ban would result in massive fines enforced by the insurance commission.
The move comes as Spitzer's probe into the practice of placement service agreements widens at Marsh.
Garamendi said the state was in the process of preparing more rules and regulations.
He told analysts: “This is going to be a long and very unhappy situation for the insurance industry.”
