Connecticut Insurance

The new efforts to study the insurance industry yesterday that the Attorney General of Connecticut exposed to large citations health insurance funds and providers of services to workers and self-assurance. Officials and California took steps taken to the end of what the regulatory authorities of fraudulent practices in the insurance brokerage.

In Connecticut, Aetna of the Fatherland, one of the greatest nation of sickness funds and a basis for Cigna and Anthem, Richard Blumenthal, attorney general, said he was seeking details of rigging Prices and pricing, including brokers, agents and health care and auto insurance.

“It is important to assembling and information justifies an intensification of efforts investigation,’’said Blumenthal.

In California, John Garamendi, insurance commissioner, said he planned to submit a proposal for a regulation today to require brokerage in its entirety, disclose fees. The state regulation would be the first official measure to change how the industry has worked since Eliot Spitzer, New York, the Attorney General, said last week that tax incentives were created for brokers “Korruption” widespread in the industry.

Mr. Spitzer investigation develops, and investigators say they are now on social security benefits and auto insurance after initially focusing on commercial insurance. But while some companies, sell these two benefits for employees and health insurance, Aetna, have received subpoenas, M. Spitzer’s investigation M. Blumenthal seems a new path, focusing on health coverage.

Mr. Blumenthal would not name the companies, it had designated for the provision of information, but he said he was “looking for evidence of supply Rigging, pricing, any activity wettbewerbswidrige”unter insurers, their brokers and other “and we have few clues to let you invade.”

A spokesman for Aetna, David Carter, said that, with effect from the end of yesterday, he did not receive a summons.

Expresses concern that the regulatory authorities have their homes to health insurance rattled the stock market yesterday. The share of health insurance has fallen: United Health Group fell more than 9 percent to $ 66.50; Aetna were 12 percent to $ 86.17 and Cigna fell by 10 percent to $ 59.73. Stock prices of major insurance brokers to continue their film. Marsh & McLennan has fallen 5.7 per cent, another closing price yesterday at $ 24.10. Marsh’s stock price collapsed, 48 percent over the four days, given that Mr. Spitzer announced an action against the company. Shares of Marsh’s rival, Aon, fell 9.7 percent to $ 19.20. The head of the insurance industry, American International Group, fell also, as regards the Dow Jones Industrial Average lower. The action of the A.I.G. east fell 3.3 percent to $ 57.70.

Tax incentives to brokers, known as placement service or success fee agreements, are the heart of Mr. Spitzer’s suit. Last week, Marsh said it would stop these payments, and two insurers AIG and Ace of Bermuda, said they would not be any more as a party to these regimes.

But laws and regulations of the State are vague or silent on the question of whether such payments for volume and profitability are legitimate. The proposal by Mr. Garamendi, who must undergo a public consultation and verification of California’s Office of Administrative Law, would require that brokers’ disclosure of all facts around the preservation of income brokerage in a third party.”

Until accusations of Mr. Spitzer, Marsh and other brokers had reported on their Web sites, they paid by insurers, but no details. Some brokers said they would give more information, upon request, but some customers, whereas he himself have obtained little details.

He explained the role of a broker, it is the best insurance companies at the best price. In exchange, brokers receive a fee or commission for corporate clients on insurance. Mr. Spitzer was led to consider, after a telephone conversation last spring, that questions whether payments to brokers on both sides to reach agreement represented an inherent conflict of interest.

Mr. And Mr. Blumenthal Garamendi said the investigation, they were separated in the implementation of corruption in the sector has expanded and accelerated, given that Mr. Spitzer action for annulment and the arrest of three leaders of the industry.

“Unfortunately, indications that these practices are widespread and pervasive than anyone would have thought,’’said Blumenthal. We started with the damage and accident and we are now extending the focus on health insurance, welfare benefits and auto insurance.”

An insurance executive, has worked seven years as Sales Executive for the Unum Life Insurance Company of America and Zurich Insurance said it was “routine Praxis”in health insurance and benefits for workers Brokerage firms ask for forgery and for insurance companies provide believe that insurers were fighting for their business.

The executive, Brent Bannerman, is now an executive in an insurance site in the vicinity of Boston, the broker said: “we ask you to provide, but she would always say that we have been we have not received on this account - but only give a number of us, we can fill in the table.