Auto insurance provider ordered to pay hefty compensation to agents for missing sales commissions

January 18, 2011
By: Bruce Berry

A legal dispute over sales commissions between agents of Safe Auto Insurance and company management saw a victory for the plaintiffs last week as a judge ordered the corporation to repay nearly $12 million to its sales staff, according to a report in the Columbus Dispatch.

Judge Julie Selmon of the Monroe County Common Pleas Court had already ruled the salespeople were in the right, the paper said, but the damages had not been set until last week's ruling. Attorneys for the plaintiffs expressed bemusement that the company had not settled the case, the Dispatch added.

If Selmon decides the sales staff is entitled to interest payments on the sum, the total owed by Safe Auto Insurance could top $14 million, according to the Dispatch. The company told the paper it planned to appeal the ruling but had no further comment on the case.

Despite the turmoil at that insurer, the auto insurance market in Ohio appears to be healthy, with strong competition meaning that consumers have access to the eleventh-cheapest policies in the country, according to a recent study.

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