Agent Commissions Exposed in Lawsuit

Sometimes it takes a lawsuit to find out how much you are paying your insurance broker. This is a exerpt taken from a lawsuit in South Texas that reveals the broker who placed the business with this political subdivision was paid 50% of the TPA’s administrative fees.

Before HIGGINBOTHAM, DAVIS, and WIENER, Circuit Judges.


Plaintiff-Appellant XXXXX XXXXXX appeals from the district court’s grant of summary judgment for Defendant-Appellee the City of Corpus Christi (“the City”), dismissing XXXXX§ 1983 First Amendment retaliation claim. Concluding that XXXXX lacks standing to pursue his asserted claim, we vacate the judgment of the district court and remand with instructions to dismiss.


In 1998, XXXXX prepared and submitted to the City, on behalf of XXXXXXXXXXXX (“XXXXXXX”), a proposal to provide third-party claims administration and accounting services to the City in connection with its health insurance program. In January 1999, XXXXXXX separately agreed to pay XXXXX half of all monthly administrative fees that it would receive if it should be awarded the health plan administration contract (“the Contract”).1 The letter from XXXXXXX to XXXXX memorializing this agreement does not precisely identify the services that XXXXX had provided or would provide in exchange for his payments.

In February 1999, the City awarded XXXXX the Contract