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Friday October 22, 06:11
Connecticut joins California in Spitzer probe

Connecticut joins California in Spitzer probe


(by Ginger O'Neil)

Connecticut is going to join California amid New York Attorney General Eliot Spitzer’s probe over the U.S. insurance industry scandal.

The two states will open lawsuits as soon as next week and at least ten insurance brokers will be sued, authorities said.

"The average consumer ought to be alarmed and appalled by this potentially improper and illegal conduct. Wholly apart from ethical considerations, this behaviour has real-life consequences by pushing up the cost of everyone’s insurance," says Connecticut Attorney General Richard Blumenthal.

Earlier this month, the New York Attorney General opened a probe against the biggest brokerage insurer Marsh & McLennan Cos. for rigging bids and inflating client costs.

Several other insurers are also involved in the probe, including AIG, Aetna and Cigna, the authorities said.

``I was surprised by the rigging. We all knew there were contingent commissions going on, but when you mix the fraud element in there, that gives me a lot more pause,’’ said Kevin Callahan of Century Capital Management in Boston.

The result of the probe was that the whole industry now faces charges and one can hardly find an insurer not involved in the scandal.

All insurance news
Read the related news and articles:
28 Apr 2005 02:11 PM Spitzer probes subprime lenders, including HSBC and Citigroup
27 Apr 2005 07:33 AM AIG knew accounting for workers’ premiums was illegal, says Spitzer
11 Apr 2005 08:02 AM McKesson Corp. and Cardinal Health Inc. in Spitzer’s bad grace
22 Mar 2005 05:33 PM European insurance firms are examined by regulators
07 Mar 2005 05:18 PM Settlement with Spitzer costs Aon $190 mln
 


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