Earlier in the week, a disgruntled reader wrote in to complain about the Journal Gazette's "investigative editorial" on the relationship between Allen County government and Charles Bodenhafer, a local businessman.
Yesterday, Tracy Warner wrote about that piece, as well as others that have been run as part of the JG's "One Party Rule" series. After I posted an item on what Tracy wrote, I got an email from the Allen County Commissioner's public information officer, John McGauley. He's given me permission to share its contents here.
From the editorial:
"Officials could negotiate to have portions of commissions returned to the government. Commissions could influence a broker to favor a company that might not necessarily offer the best deal for taxpayers."
Return commissions to the county? It's illegal...
Had Tracy been more interested in digging into this issue and not so much in a partisan political slam on the Republicans, he might have dug up Indiana Code 27-1-22-18, which specifically FORBIDS rebating commissions or premiums to insured parties. In other words, it's a process known as rebating - one that is actually illegal.
Here's the text of the law (it's online here):
Sec. 18. No insurer, broker, or insurance producer shall knowingly charge, demand, or receive a premium for any policy of insurance except in accordance with the provisions of this chapter.
No insurer or employee thereof, and no broker or insurance producer shall pay, allow, or give, directly or indirectly, as an inducement to insurance, or after insurance has been effected, any rebate, discount, abatement, credit, or reduction of the premium named in a policy of insurance, or any special favor or advantage in the dividends or other benefits to accrue thereon, or any valuable consideration or inducement whatever, not specified in the policy of insurance, except to the extent provided for in applicable filings.
No insured named in any policy of insurance shall knowingly receive or accept, directly or indirectly, any such rebate, discount, abatement, credit or reduction of premium, or any such special favor or advantage or valuable consideration or inducement.
Nothing in this section shall be construed as prohibiting the payment of, nor permitting the regulation of the payment of, commissions or other compensation to duly licensed insurance producers and brokers, nor as prohibiting, or permitting the regulation of, any insurer from allowing or returning to its participating policyholders or members, dividends or savings.
So [Tracy Warner]'s either wildly overdriving his journalistic headlights or he's trying to snooker Bodenhafer into doing something wrong so that his next round of Republican bashing will actually have some teeth to it...
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