THE COMMISSION INVESTIGATED THE ALLEGATION THAT BROKERS WHO HAVE HANDLED VIRTUALLY ALL OF THE MAJOR INSURANCE POLICIES FOR THE CITY OF BINGHAMTON AND THE COUNTY OF BROOME HAVE SHARED THE COMMISSIONS RECEIVED ON THOSE POLICIES WITH OTHER BROKERS IN EXCHANGE FOR POLITICAL CONTRIBUTIONS FROM THOSE BROKERS. FINDINGS SHOWED THAT THE COMMISSION-SHARING SCHEME HAS OPERATED IN BROOME COUNTY AND IN BINGHAMTON FOR MORE THAN 2 DECADES UNDER BOTH DEMOCRATIC AND REPUBLICAN ADMINISTRATIONS. IT OPERATED TO THE BENEFIT OF THE BROKERS OF RECORD FOR THE CITY AND COUNTY WHO RECEIVED SUBSTANTIAL COMMISSIONS ON THE POLICIES THEY WROTE, AS WELL AS THE BROKERS WHO RECEIVED TENS OF THOUSANDS OF UNEARNED DOLLARS AND THE POLITICAL PARTY IN POWER, WHICH RECEIVED CONTRIBUTIONS AND SERVICES FROM THE BROKERS. FROM 1972 THROUGH 1974, THE TAXPAYERS BORE THE COST OF $28,500 IN UNEARNED COMMISSIONS IN THE CITY OF BINGHAMTON. FROM 1973 THROUGH 1976, THE TAXPAYERS BORE THE COST OF $57,000 IN UNEARNED COMMISSIONS IN BROOME COUNTY. THE COMMISSION IS CONTINUING TO INVESTIGATE SIMILAR INSURANCE PRACTICES IN OTHER AREAS OF THE STATE AND WILL WITHHOLD RECOMMENDATIONS UNTIL THE COMPLETION OF ALL INVESTIGATION. SUPPORTING DATA AND MATERIALS ARE PROVIDED IN THE APPENDIXES. (RCB)