Friday, October 15, 2004

Spitzer Takes on Insurance Industry

New York Attorney General Eliot Spitzer sued insurance giant Marsh & McLennan and implicated American International Group and several others Thursday, alleging brokers have been taking payoffs from insurance companies to steer corporate clients their way rather than get the best prices for policies, as they are required. Two AIG executives pleaded guilty to participating in the illegal conduct and are expected to testify in future cases, Spitzer said in announcing the broader investigation into whether brokers and companies violated fraud and antitrust laws and regulations.

No comments: