Kickbacks disguised

Tennessee insurer fined
in S.D. kickback probe

By Jonathan Sidener
San Diego Union Tribune

June 25, 2008

Tennessee insurance company Unum
Group will pay a $5.5 million fine as a
result of a federal investigation of
kickbacks paid to a San Diego
insurance broker, according to the
U.S. Attorney's Office.

The San Diego company, which
prosecutors have not named,
received millions of dollars in
kickbacks disguised as items such as
requests for proposals,
communications and enrollment fees.
Those fees were passed along to

A Unum spokesman said the San Diego
company is Universal Life Resources,
which apparently closed shop in 2006
after agreeing to pay $2 million in
restitution in New York state over similar

Large companies such as Intel, Eastman
Kodak and Callaway Golf
Universal Life to provide unbiased
advice on employee benefits
insurance plans.

In 2004, New York prosecutors alleged
that Universal Life received undisclosed
contingent commissions, which are akin to
kickbacks, for steering business to certain
insurers. A New York lawsuit alleged that
Universal Life collected about $11.5
million of its $25 million in revenue in
2003 from these secret commissions.

A statement from prosecutors said they
negotiated a settlement with Unum in part
because the company had a “relative lack
of culpability.” A prosecutor declined to
comment on the scope or focus of the
“ongoing” investigation.

Federal investigators apparently
launched their investigation after the New
York state lawsuit.
Several publicly
owned insurance companies have
since reported receiving subpoenas
from San Diego investigators.

Unum spokesman Jim Sabourin described
the investigation as an industry issue that
has involved other insurers and other
states. As part of the settlement, Unum
agreed to overhaul its internal controls
and standards, Sabourin said.

The Associated Press contributed to this
SF lawsuit against insurance
Sales Manager - California
Teachers Association

Company: Standard Insurance Co


If you want to make a positive difference and
stand out from the crowd, you'll fit in at The
Standard ( Through our
retirement plans and insurance products and
services, we help provide people with the
financial security and confidence to pursue their

With operations in most states, The Standard's
three thousand-plus employees enjoy a vast
array of career options...

In this exciting role(located either in California
or Portland, Oregon) you will drive all sales
activities aimed at a newly acquired, very large,
and strategically critical customer, the California
Teacher's Association (CTA). You will lead a
team consisting of 6 Sales Representatives to
drive sales growth in premium and lives, and
long-term retention, focusing on life and
disability products for CTA's individual
members. You will partner closely with a
dedicated marketing team to plan and execute
marketing campaigns aimed at new
enrollments, increases in existing business,
and retention.

You will also manage close working
partnerships with CTA state and local district

This strategically visible leadership position will
play a key role within a new business unit
formed to support this new customer...

Primary responsibilities for this position:

- Provide leadership to, and manage the
performance of, a dispersed, California-based
team of Sales Representatives.

Be responsible for meeting CTA growth and
retention metrics, with a focus on
collaboration and partnership with CTA
and Chapter and District representatives.

Your team will consist of Voluntary Sales
Representatives focusing on chapter-level
enrollments and retention, and a District-paid
Sales Representative focusing on increasing
our block of business with districts who provide
benefits directly to their employees.

- Serve as the principle sales liaison for CTA's
leaders at the state and district level to
establish and grow your team's partnership,
value, and trust. Act as a conduit for information
to and from CTA ensuring clear expectations,
understanding of sales opportunities,
forecasting and other metrics.

- Work with business unit leadership, marketing
and other operational units within The Standard
to build a cohesive sales function in support of

- Partner with a dedicated marketing team to
plan and execute a broad range of initiatives
and programs aimed at increasing enrollments
and existing business, while retaining currently
enrolled members. Ensure successful
execution of enrollment strategies in the field...

- Five-plus years of direct premium generating
and customer facing experience within the
either the supplemental insurance or group
benefits markets, ideally including life and
disability product experience. Sales experience
which includes managing large government,
association or other non-profit cases a
significant plus...

Standard Insurance Company, The Standard
Life Insurance Company of New York, Standard
Retirement Services, Inc., StanCorp Equities,
Inc. and StanCorp Investment Advisers, Inc.,
marketed as The Standard, are Equal
Opportunity employers.
Violence  in schools
Joint Powers Authority
Executive Committee
SD Education Rpt BLOG
Site Map
Larkins case
Public Record Requests
Maura Larkins Case
List of School Districts
Public Entities & Press

Why This Website



Castle Park Elem

Law Enforcement



Stutz Artiano Shinoff

Silence is Golden

Schools and Violence

Office Admin Hearings

Larkins OAH Hearing
SELF-Schools Liability



John Burnham Insurance

San Francisco Lawsuit

Randy Ward Public
Rodger Hartnett
Diane Crosier

Lora Duzyk
Missing Tort Claim

All Claims Denied
Rodger Hartnett v. SDCOE
claim and complaint
Dan Puplava

CALA Gavel of Justice


Ethics in Education
Insurance Brokers
Driver Alliant Insurance Services To
End Contingent Agreements With
Insurance Carriers.
The Free Library by Farlex

Driver Alliant Insurance Services, Inc.,
along with its parent company, Alliant
Resources Group, Inc., announced
today that they will be eliminating their
contingent income agreements with
insurance carriers. Alliant is one of the
largest U.S. insurance brokerage and
financial services distribution
companies, with Driver Alliant serving
as its west coast operation.

In taking this action, John Addeo,
President and CEO  of Alliant said,
"the interests of our clients come first
and the possible perception that
contingent commission agreements
create a conflict of interest must be

"Because our highest priority is the
trust, confidence and satisfaction of
our clients, we are no longer entering
into or renewing contingent income
agreements," said Thomas Corbett,
Chairman and CEO of Driver Alliant.
"Our decision to end contingent
income agreements definitively
responds to the growing concern and
confusion surrounding such

Addeo further noted that, "While we
believe that we have conducted our
business in conformity with all
applicable insurance laws and
regulations, Alliant has commenced an
internal review of marketing practices
and compensation arrangements with
insurance carriers as well as internal
placement procedures to insure that
the interests of our clients are
paramount and that our practices
reflect this commitment."

About Alliant Resources Group, Inc.

Alliant is a national distributor of
insurance and financial services
products, reaching a broad base of
middle-market clients through a
growing network of operating

Alliant was founded by John Addeo
and equity partner GTCR GTCR
Glacier Travel and Crevasse Rescue  
Golder Rauner, LLC in March 2000.
Alliant's business plan contemplates
rapid expansion over the next several
years through the continued selective
acquisition of high-quality regional
insurance brokerage firms that
possess strong management teams
and demonstrated records of growth,
profitability and quality service.

Importance of sales management is
critical for any commercial
organization. Expanding business in
not possible without increasing sales
volumes, and effective sales
management goal is to organize sales
team work in such a manner that
ensures a  as well as cross selling of
insurance products are key
components of Alliant's marketing
strategy. Alliant's revenues for 2004
are expected to be approximately $200

Alliant has completed 12 acquisitions
and is aggressively pursuing additional
acquisitions and strategic partnerships
throughout the country to complement
its existing operating companies and
products. The largest of its
acquisitions, Driver Alliant, has been a
part of Alliant since 2001. Driver Alliant
provides a full range of insurance
brokerage services that focus on
middle market and public entity clients.
Blackstone to buy brokerage Alliant
Jun 4, 2007
By Michael Flaherty

NEW YORK, June 3 (Reuters) - The
Blackstone Group [BG.UL] struck a
deal to buy its first insurance
brokerage firm, saying on Sunday it will
purchase privately held Alliant
Insurance Services Inc.

Terms of the deal were not disclosed,
but a source close to the process said
Blackstone will pay $1.2 billion.

Blackstone is buying Alliant from
private equity firm Lindsay Goldberg.
The deal comes nine months after
Alliant announced plans to buy the
U.S. operations of London-based
Jardine Lloyd Thompson Group Plc
(JLT.L) for $100 million.

For Blackstone, which typically
pursues companies worth tens of
billions of dollars, the Alliant buyout is
a small transaction. But the firm said
the company offers a nice "platform,"
suggesting it would roll more insurance
brokerages into the business.

"Alliant is an attractive platform due to
its market leadership in its core
segments (and) superior growth
prospects," Blackstone's Senior
Managing Director Chinh Chu said in a

The insurance brokerage market is
fragmented, with small, medium and
large companies spread throughout
the United States.