Situation: wholesaler/program manager has an exclusive market for product 'A'. Product 'A' happens to be in high demand right now and many agents are desperate need of a home for their product 'A' clients. So this wholesaler exploits that need and says we will quote product 'A' for you but only if you place product 'B', product 'C', and product 'D' with us as well. Is this legal? I know 10+ years ago when I was an independent agent in Louisiana, one of the liberty mutual affiliates America First, was told that it was illegal for them to essentially hold a product hostage. In this case they were heavy on the home side in Louisiana so they made a rule that they weren't quoting any more monoline homes. If you wanted a home quote you had to buy a home/auto package. The problem was that their auto pricing was out of line. Same situation here. This wholesalers is forcing their agents to sell over priced products 'B' 'C' and 'D' in order to gain access to product 'A'. If it's not illegal it should be. It's causing the agents to act in other than the insured's best interest. Thoughts?
