The City of Troy, New York, "Where Henry Hudson Turned Around."

Tuesday, May 24, 2005


If the administration thought we'd forget about this, they'd better think again. There will be more Carignan posts as the year goes by. For background, see this post.

Why won't we let go of the story? Because it stinks.

At the outset, we have to say that we do not know, legally, if Carignan is entitled to the broker's commission. That's a legal question we cannot answer. We do know that Mayor Tutunjian has some serious questions he needs to answer. His credibility is on the line and the press must ask him some serious questions.

First, one of the key pieces in this mystery is the "Broker of Record" letter. Simply put, a broker of record letter informs everyone that the insured (the City) has a new agent. For instance, many of you have a homeowners policy of insurance. Say that your agent is Agent "A". The underwriter is State Farm. With a broker of record letter, you can change your agent to Agent "B". Agent "B" will now handle your State Farm homeowners policy. The broker of record letter changes nothing else. You still have the same insurance policy you always had, just a new agent.

Insuring a munciplality is not like insuring a private residence. Coverage and rates for a city involves researching exisiting lawsuits, potential lawsuits, potential exposure and what reserves need to be maintained. You don't throw a bid together overnight.

So, some simple questions for Mayor Tutunjian. If he has answers, great. Let us hear them.

1 - You said the City saved approximately $60,000 by switching brokers. How was that money saved?

2 - Did the two brokers who now share in the commission, give back $60,000 of that commission? Is that how the money was saved?

3 - Why is an agency outside the City of Troy sharing in the commission when 100% of that commission could now be in Troy?

4 - Did you rely upon the advice of others when you issued the press release that stated the switch in brokers saved the city $60,000?

5 - If so, who did you rely upon?

Those are some pretty simple questions that the press needs to ask. We'd be satisfied if the first two were answered.

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